Case Note & Summary
The appellant, S.D. Manohara, had been in service of the Konkan Railway Corporation Limited since 1990. On 05.12.2013, he tendered his resignation, stating it may be considered effective after one month. The employer claimed that the resignation was accepted on 15.04.2014 with effect from 07.04.2014, and that the appellant sought to withdraw it only on 26.05.2014, which was rejected on 23.06.2014, and he was relieved on 01.07.2014. The appellant contended that the letter dated 15.04.2014 was never served on him and was an internal communication; he continued to work and was even asked to report to duty on 10.05.2014. His wife also wrote letters on 17.04.2014 and 20.05.2014 requesting that the resignation not be accepted. The appellant filed a writ petition before the Karnataka High Court, which was allowed by a Single Judge on 16.07.2019, directing reinstatement. The employer's appeal to the Division Bench was allowed, leading to the present appeal to the Supreme Court. The Supreme Court examined the facts and held that the letter dated 15.04.2014 was an internal communication not served on the appellant, and the appellant's continued service and the employer's letter of 10.05.2014 asking him to report to duty indicated that the resignation had not been finally accepted. The withdrawal on 26.05.2014 was before the effective date of relieving (01.07.2014). The Court allowed the appeal, set aside the Division Bench judgment, and directed reinstatement within 30 days with 50% back wages from 01.07.2014 to the date of reinstatement, to be paid within two months. The period shall count for pensionary benefits. Parties to bear their own costs.
Headnote
A) Service Law - Resignation - Withdrawal Before Acceptance - The principle that resignation can be withdrawn before its acceptance is well-established. The court examined whether the employee had withdrawn his resignation before the employer accepted it. The employer's letter dated 15.04.2014 was held to be an internal communication not served on the employee, and the employee continued to work and was asked to report to duty, indicating no final acceptance. The withdrawal on 26.05.2014 was before the effective date of relieving (01.07.2014). Held that the resignation was withdrawn before acceptance, and the employee is entitled to reinstatement with 50% back wages (Paras 3, 9-12). B) Service Law - Acceptance of Resignation - Internal Communication - A letter of acceptance that is not communicated to the employee and is merely an internal note does not constitute valid acceptance. The employer's letter dated 15.04.2014 was not marked to the employee and did not fix a relieving date, and the employee continued in service. Held that such internal communication cannot be treated as acceptance of resignation (Paras 5.1, 10). C) Service Law - Delay in Acceptance - Undue Delay - The resignation dated 05.12.2013 was accepted only on 15.04.2014, a delay of over four months. The employee had sought withdrawal on 26.05.2014, before the relieving date of 01.07.2014. The Single Judge held that the delay in acceptance was undue, and the Division Bench erred in not considering this. Held that the withdrawal was valid and the employee must be reinstated (Paras 11, 12).
Issue of Consideration
Whether the appellant had withdrawn his resignation before its acceptance by the employer.
Final Decision
Appeal allowed. Judgment of Division Bench of Karnataka High Court set aside. Appellant to be reinstated within 30 days. He shall receive 50% of salary for the period from 01.07.2014 to date of reinstatement, to be paid within two months. The period shall count for pensionary benefits. Parties to bear own costs.
Law Points
- Resignation can be withdrawn before its acceptance
- Internal communication not amounting to acceptance
- Delay in acceptance of resignation
- Reinstatement with partial back wages
