Case Note & Summary
The dispute arose between a government undertaking and its employees regarding the voluntary retirement scheme (VRS) offered due to the impending closure of the Dariba Copper Project in Rajasthan. The appellant, Hindustan Copper Ltd., had issued a notice of closure and offered a VRS in 1993, leading to 112 employees opting for retirement, although 10 later sought to withdraw their applications. The appellant refused to allow the withdrawal based on a clause in the option form. A writ petition filed by the employees was dismissed, but a subsequent intra-court appeal by six employees led to a ruling by the Rajasthan High Court that favored the employees, stating they had the right to withdraw their offers before acceptance. The High Court ordered their reinstatement with back wages. The appellant contended that reinstatement was not feasible due to the closure of most mines. The Supreme Court, referencing a previous judgment, affirmed that the employees could withdraw their options before acceptance, thus supporting the High Court's decision. The court also noted that while the employees had received payments under the VRS, these amounts would be adjusted against any back wages owed. The court directed the employees to join their posts at the transferred locations within 15 days of communication. The appeal was disposed of with no costs.
Headnote
A) Employment Law - Voluntary Retirement Scheme - Withdrawal of Option - Indian Contract Act, 1872, Section 5 - Employees had the right to withdraw their options for voluntary retirement before acceptance, as established by precedent. The court held that the stipulation in the option form did not preclude withdrawal prior to acceptance, thus allowing reinstatement with back wages (Paras 1-3).
Issue of Consideration
Whether employees could withdraw their options for voluntary retirement before acceptance.
Final Decision
The Supreme Court upheld the High Court's decision, allowing the employees to withdraw their options for voluntary retirement and ordered their reinstatement with back wages, subject to adjustments for amounts already paid under the VRS.
Law Points
- Voluntary Retirement Scheme
- Indian Contract Act
- 1872
- withdrawal of option
- reinstatement
- back wages
