Case Note & Summary
The dispute arose from the appellant's application for voluntary retirement under a scheme offered by the respondent company. The appellant, who had been employed since 1964, applied for voluntary retirement on October 18, 1995, which was accepted on July 30, 1997. However, he sent letters withdrawing his application on August 7 and September 24, 1997, before the effective date of release on September 26, 1997. The High Court dismissed his petition challenging the release order, which led to the appeal in the Supreme Court. The Supreme Court analyzed the legal principles surrounding voluntary retirement and the right to withdraw such applications. It referenced several precedents, including Balram Gupta v. Union of India and Gopal Chandra Misra v. Union of India, establishing that an employee retains the right to withdraw their resignation before the effective date of termination. The court concluded that the appellant's withdrawal was valid, as the employer-employee relationship continued until the actual release date. Consequently, the Supreme Court set aside the High Court's judgment, allowing the appellant to rejoin his duties and entitled him to all salaries and benefits during his absence from service. The court also addressed the possibility of the appellant having retired by the time of the judgment, ensuring he would receive full salary and allowances until retirement, treating the period out of service as if he had been employed.
Headnote
A) Employment Law - Voluntary Retirement Scheme - Right to Withdraw - Constitution of India, Article 226 - The court held that an employee has the right to withdraw from a voluntary retirement scheme before the effective date of release, as the acceptance of resignation does not sever the employer-employee relationship until the employee is actually relieved from duty. The appellant's withdrawal was valid as it occurred before the effective date of release (Paras 1-5).
Issue of Consideration
Whether the appellant could withdraw his application for voluntary retirement after its acceptance but before the effective date of release from service.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and ruled that the appellant could withdraw his voluntary retirement application before the effective date of release. The appellant was entitled to rejoin his duties and receive all salaries and benefits during the period he was out of service.
Law Points
- Voluntary Retirement Scheme
- locus poenitentiae
- withdrawal of resignation
- employer-employee relationship
- effective date of resignation
