Bond of indemnity for drawing leave salaries, etc.
103. (a) Government servants or pensioners often make arrangements with their agents to draw their leave salaries or vacation pay, pensions, etc. either granting them powers of attorney to enable them to do so, or leaving their bills ready signed in the agents custody for presentation, the agents in their turn executing a bond of indemnity in favour of the Government as security against any loss in case of over-payment.
NOTEA register of power-of-attorney will be kept by the Treasury Officer in the form prescribed in paragraph 50 of the Government Securities Manual.
(b) The bond of indemnity, which must be stamped may be of the following form in the case of a firm/bank :
In consideration of our/their being permitted to draw the pay/leave salary/pension of..... during his absence from the Uttar Pradesh we/the (here insert the name of the bank) do hereby engage to refund to the Government on demand any over-payment that may be made to us/them as his agents/agent.
(c) It must of course be seen that the person signing the bond of indemnity has authority to bind the firm or bank.
(d) It is not necessary, however, for a separate bond to be executed in the case of each individual servant by Banks, which are included in the Second Schedule to the Reserve Bank of India Act. They may enter into a general agreement with the Government in the form given in Appendix VI. This agreement is to be executed only in respect of officers/pensioners of the State Government. For officers/pensioners of the Central Government a separate indemnity bond should be executed in accordance with the Rules of the Central Government on the subject.
NOTES(1) A list of agents who have executed general bonds of indemnity before April 1, 1937, is given in Annexure "A" to this chapter. Part I of Annexure "A" constitutes the list of agents who inter alia have secured the title to draw, on behalf of their constituents, pensions payable in this State on behalf of other Government as well, while Part II mentions those who are not so entitled.
(2) A list of agents who have executed general bonds of indemnity after April 1, 1937 is given in Annexure "B" to this chapter.
103-A. Banks applying for recognition by Government for purposes of paragraph 103 and 320, should submit their applications to Government.