Case Note & Summary
The petitioner, Madhusudan Govindrao Trivedi, was employed as an Assistant Cashier with UCO Bank. He applied for voluntary retirement under a scheme dated 16-11-2000, submitting his application on 1-1-2001. However, after receiving complete information about the scheme's features, he decided to withdraw his application. He wrote a letter expressing his inability to accept the scheme and sought permission to withdraw the option. The Bank declined to consider his withdrawal and was about to accept his application when the petitioner approached the High Court. The key legal issue was whether an employee can withdraw a voluntary retirement application before the employer communicates its acceptance. The petitioner's counsel argued that it is settled law that an employee can withdraw such an application at any time before acceptance is communicated. The Bank had not communicated acceptance of the application. The court, relying on established principles, held that the right to withdraw subsists until the employer communicates acceptance. Since the Bank had not communicated acceptance, the petitioner was entitled to withdraw his application. The court directed the respondents to treat the option dated 1-1-2001 as cancelled and allow the petitioner to withdraw it.
Headnote
A) Service Law - Voluntary Retirement - Withdrawal of Application - Right to Withdraw Subsists Until Acceptance is Communicated - An employee who applies for voluntary retirement can withdraw the application at any time before the employer communicates its acceptance. The Bank had not communicated acceptance of the petitioner's application for voluntary retirement. The petitioner's letter withdrawing the option was valid and the Bank was bound to consider it. Held that the petitioner is entitled to withdraw the application before acceptance is communicated (Paras 1-3).
Issue of Consideration
Whether an employee who has applied for voluntary retirement can withdraw the application before the employer communicates its acceptance.
Final Decision
The court allowed the petition and directed the respondents to treat the option dated 1-1-2001 for Voluntary Retirement Scheme as cancelled by allowing the petitioner to withdraw it.
Law Points
- Voluntary retirement application can be withdrawn before acceptance
- Communication of acceptance is essential
- Right to withdraw subsists until acceptance is communicated
