Employer threatening to hold back relieving letter due to performance issues

Serve a resignation and notice in writing on your employer to be relieved of the position with effect from the end of the notice period and to be provided a relieving letter forthwith.

In Vishal Gupta v. L&T Finance Ltd. before the High Court of Delhi, the employee had filed a Suit for permanent and mandatory injunction seeking, among other things, letter relieving him from the employment. The employer was denying the same on the ground that the employee had failed to clarify the status of some transactions undertaken in course of his employment. At the stage of interim directions, the case turned on the admitted fact that the employee had sought to be either relieved or be permitted to continue to work and that the employer was not prepared to do either.

IK Link
Relevant portions:

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there was no condition in the letter of employment that the Plaintiff has to first ensure that the non starter cases are resolved before his letter of resignation could be accepted.
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As far as the Defendant was concerned, the Plaintiff was no longer in their service and yet, they would not issue him a relieving letter simpliciter. To this Court, it appears that the point of refusal of the Defendant to take back the Plaintiff into service while at the same time refusing to grant him a relieving letter is not legally tenable. If the Plaintiff was indeed responsible for the 'non starter' cases, then consistent with such plea the Defendant ought to have proceeded to hold an inquiry against the Plaintiff while he was still in service. At no point in time while he was in service, did the Defendant initiate any disciplinary proceedings against the Plaintiff.
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Even the reason of the Plaintiff having to first resolve the two non-starter cases appears to have been a ruse to somehow deny him the relieving letter.
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All that the Defendant is required to do is to issue the Plaintiff a letter stating that he is no longer in their service. Any other qualification to such statement might render the cessation of the services of the Plaintiff stigmatic. In such an event, the resort to a clause of termination simpliciter by the Defendant would be futile and the Defendant will have to acknowledge that the Plaintiff is still in their service and proceed against him disciplinarily. This it refuses to do. Viewed from any angle, therefore, a case is made out for issuing an interim mandatory injunction to the Defendant to issue to the Plaintiff a simple relieving letter stating that he is no longer in their service. The balance of convenience in issuing such an interim injunction is clearly in favour of the Plaintiff.
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Accordingly, an interim mandatory injunction is issued directing the Defendant to issue to the Plaintiff a relieving letter within a period of seven days stating that he is no longer in their service. The said letter will not state that the Plaintiff has abandoned the service or any other qualification that prevents the Plaintiff from taking any other employment.

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You can also file Application seeking information from CPIO, of the office that is responsible for relieving you.

Information solicited:

1)Please inform specific reasons on record, and extract of such Service regulations basing on which the relieving order was withheld.

Relieving letter signifies that: Employee has resigned and nothing is due against employee.

Service certificate should be supplied to all employees.

Download the copy of resignation letter and its proof of dispatch, delivery.

If you have posted in some resignation software tool, then download the copy and also post notice of resignation by letter thru Redg. Post, addressed to god offices of appointing authority, MD and obtain POD from PO (Free) and run sheet of postman (against Rs.10/-) and download tracking report from India Post website.

Mention that NO tasks are pending at your end and to whom you should handover the charge.

Mention that copy of acknowledgment/acceptance  of notice of resignation, correct FnF statement, payment of FnF dues as per correct FnF statement, service certificate, relieving letter, NOC/NDC, , Form16,  acknowledgment of handover of charge, etc etc be supplied to you on LWD.

Download the KRA’s, targets Vs performance date, PIP policy, and tasks performed, service rules/conditions, employee handbook, salary slips of all months, Form16 of all years, PF number and a/c slips, ESIC card. etc etc .

Later you may not get any copy.

Submit final resignation under proper acknowledgment and handover charge  under proper acknowledgment.

Remain amiable and gentle and record threats made to you (audio/visual/minuted/witnessed etc etc).

Avoid any conflicts and if any stinkers, memos have been issued and supplied to you, submit proper explanation under proper acknowledgment.

Leave NO issues pending.

Handling the bosses is a skill and employee should acquire this skill like any other skill. This can help in getting any adverse comment in reliving letter.

You can be asked to perform during notice period also.

Avoid any sale that can be questioned.

Keep record of all efforts and be ready to explain your efforts.

What is your designation and nature of duties?

You are located in which state?

For how many months you have been working?

The bank is nationalized/private?

You must endeavor to build rapport with next employer so that you are absorbed on the basis of copy of notice/final resignation and are no removed if you are unable to submit relieving letter.

Explain (preferably in writing) that you can submit until you are supplied by past employer.

Copy of notice of resignation/final resignation its acknowledgment/acceptance, correct FnF statement, payment of FnF dues as per correct FnF statement, service certificate, NOC/NDC, Form16,  acknowledgment of handover of charge, salary slips of al months can suffice as good as relieving letter.

I am sending two links to  you that you may find relevant and useful.