Case Note & Summary
The petitioners were employees of Air India Limited (respondent no.2) whose services were transferred to Air India Engineering Services Limited (respondent no.1) in February 2013. The transfer was challenged by the employees' union but was upheld by the Bombay High Court and the Supreme Court. The petitioners submitted their resignations, but the respondents failed to accept them and did not relieve the petitioners or pay their legal dues. The petitioners filed a writ petition seeking a direction to the respondents to accept their resignations, relieve them, and pay all dues. The court held that an employee has a right to resign and the employer cannot force the employee to continue in service. The court directed the respondents to accept the resignations within two weeks and pay all legal dues within four weeks. The petition was allowed with no order as to costs.
Headnote
A) Service Law - Resignation - Right to Resign - Air India Certified Standing Orders, Clause 17 - Employees have a right to resign from service and the employer cannot refuse to accept resignation or force an employee to continue in service against his will - Held that the employer must accept the resignation and pay all legal dues (Paras 1-17).
Issue of Consideration
Whether the employer can refuse to accept the resignation of an employee and whether the employee is entitled to be relieved and paid all legal dues upon resignation.
Final Decision
The petition is allowed. Respondents are directed to accept the resignations of the petitioners within two weeks and pay all legal dues within four weeks. Rule made absolute. No order as to costs.
Law Points
- Right to resign
- Contract of personal service
- Specific performance not granted
- Employer cannot force employee to continue
- Payment of legal dues upon resignation
Case Details
2014 LawText (BOM) (04) 54
Writ Petition No.175 of 2014
M.A. Amonkar with R.A. Amonkar for the Petitioners, Lancy D'souza with Kavita Anchan i/b. M.V. Kini & Co. for Respondent No.2
Mr. Melroy Bosco Dias, Mr. Pankaj Kumar Jha, Mr. Chhagan Shrirang Ghadge
Air India Engineering Services Limited, Air India Limited
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Nature of Litigation
Writ petition challenging failure of employer to accept resignations and relieve employees.
Remedy Sought
Direction to respondents to accept resignations, relieve petitioners, and pay all legal dues.
Filing Reason
Respondents failed to accept resignations and relieve petitioners despite submission of resignations.
Previous Decisions
Writ Petition No.2457 of 2012 challenging transfer of employees was rejected by Bombay High Court and confirmed by Supreme Court in S.L.P. No.14219 of 2013 on 9th May, 2013.
Issues
Whether the employer can refuse to accept resignation of an employee?
Whether the employee is entitled to be relieved and paid all legal dues upon resignation?
Submissions/Arguments
Petitioners argued that they have a right to resign and the employer cannot force them to continue.
Respondents argued that the resignations were not accepted due to pending issues.
Ratio Decidendi
An employee has a right to resign from service and the employer cannot refuse to accept the resignation or force the employee to continue in service against his will. The employer must accept the resignation and pay all legal dues.
Judgment Excerpts
This petition impugns the failure of the Respondents to accept the resignations of the Petitioners and their request to be relieved from services and to pay them all their legal dues.
The Petitioners were employed initially with respondent No.2 till February, 2013 and with effect from February, 2013 their services were transferred to Respondent No.1 Air India Engineering Services Limited.
Procedural History
The petitioners filed Writ Petition No.175 of 2014 in the Bombay High Court challenging the failure of respondents to accept resignations. The court issued rule and heard the matter finally by consent.
Acts & Sections
- Air India Certified Standing Orders: Clause 17
