Non-payment for notice period and police verification of new govt job

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It depends on the terms of your employment contract. If the Company is refusing to accept the basic salary, you send them a demand draft along with a covering letter detailing the circumstances under which you are sending along with your resigning letter through registered post. You also send them an e-mail stating the circumstances along with the scan copy of letter and demand draft. Thereafter, you can resign from the company. In case, the Company files a suit against you, in that case you have a defence and document to show that you abided by the terms of the agreement you entered into with the company.
Although, Court in Superintendence Co. of India v. Krishun Murgai. (AIR 1980 SC 1717):

"The drafting of a negative covenant in a contract of employment is often a matter of great difficulty. In the employment cases so far discussed, the issue has been as to the validity of the covenant operating after the end of the period of service. Restrictions on competition during that period are normally valid, and indeed may be implied by law by virtue of the servant's duty of fidelity. In such cases the restriction is generally reasonable, having regard to the interest of the employer, and does not cause any undue hardship to the employee, who will receive a wage or salary for the period in question. But if the covenant is to operate after the termination of services, or is too widely worded, the Court may refuse to enforce it. ……………At the time of the agreement, the employee may have given little thought to the restriction because of his eagerness for a job; such contracts "tempt improvident persons, for the sake of present gain, to deprive themselves of the power to make future acquisitions, and expose them to imposition and oppression."

In the above case, The respondent was employed in the appellant firm. The contract of service contained a negative covenant restricting him from joining a competitor or doing a similar business of his own. He was terminated by the company and thereafter he started a business of his own which was similar in nature to the business done by the Superintendence Company of India P Ltd.

The court had also discussed in large the matter of "leaving/ resigning and joining a competitor" which should be treated different from 'dismissing/ Discharging/ terminating from service since in the instant case the employee did not leave by himself but was terminated from service.

Section 27 in The Indian Contract Act, 1872

27. Agreement in restraint of trade, void.—Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. —Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void." Exception 1.—Saving of agreement not to carry on business of which goodwill is sold.—One who sells the goodwill of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the goodwill from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business.

Advocate Siddhant Sharma LawRato