Case Note & Summary
The dispute arose between a permanent officer of Punjab National Bank and the bank regarding the acceptance of the officer's resignation. The officer submitted his resignation on 21st January 1986, intending it to take effect on 30th June 1986. However, the bank accepted the resignation with immediate effect on 7th February 1986, prompting the officer to challenge this decision in the High Court. The High Court ruled that the resignation could only become effective after the notice period of three months, thus allowing the officer to withdraw his resignation before it took effect. The bank appealed this decision, arguing that the regulations allowed for the waiver of the notice period. The Supreme Court upheld the High Court's ruling, emphasizing that the resignation was a voluntary act and the employee had the right to choose the effective date. The court clarified that the bank could not accept the resignation before the specified date without the employee's consent. Consequently, the officer was deemed to have remained in service until the effective date of resignation, and his withdrawal was valid. The appeal was dismissed, affirming the High Court's decision without costs.
Headnote
A) Labour Law - Employee Resignation - Withdrawal of Resignation - Punjab National Bank Service Regulation, 1981, Regulation 20(2) - The court held that until the resignation becomes effective, the employee has the right to withdraw it. The bank's acceptance of resignation before the effective date was deemed without jurisdiction (Paras 616-619).
Issue of Consideration
Whether the bank was entitled to accept the resignation from an earlier date than specified by the employee.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's ruling that the resignation was not effective until the specified date and the employee had the right to withdraw it.
Law Points
- Interpretation of service regulations
- employee resignation
- withdrawal of resignation
- notice period requirements
- jurisdiction of competent authority
