Case Note & Summary
The petitioner, Sheikh Imtiyaz Babur, was employed as a Senior Clerk with the Board of Trustees of Mormugao Port Trust (Respondent No. 1). On 21.02.2008, he submitted an application for voluntary retirement. Under the applicable regulations, the notice period for voluntary retirement was three months, and the offer could be withdrawn within that period. The respondents accepted the offer and fixed the effective date of retirement as 01.06.2008. However, before the expiry of the three-month period, the petitioner received a demand from M/s. Sahakar Urban Credit Co-operative Society for payment of Rs. 6,18,098/- on account of a surety given to one Rauf Sheikh. Consequently, on 09.05.2008, the petitioner withdrew his offer of voluntary retirement, well within the notice period. The respondents refused to allow the withdrawal and rejected his appeal on 31.05.2008. The petitioner then filed a writ petition seeking to set aside the communications dated 14.05.2008 and 31.05.2008, and for permission to withdraw the retirement offer, reinstatement, and back wages. The court considered the legal issue of whether an employee can withdraw a voluntary retirement offer before the expiry of the notice period. The petitioner argued that the retirement becomes effective only after the notice period ends, and until then, the offer is revocable. The respondents contended that once the offer was accepted, it could not be withdrawn. The court relied on the Supreme Court judgment in Punjab National Bank v. P.K. Mittal (1989 Supp (2) SCC 175), which held that under Regulation 20 of the Punjab National Bank (Officers) Service Regulations, a resignation becomes effective only after the expiry of the notice period, and the employee can withdraw it before that. Applying the same principle, the court held that the petitioner's withdrawal on 09.05.2008, before the effective date of 01.06.2008, was valid. The court quashed the impugned communications and directed the respondents to reinstate the petitioner with continuity of service and full back wages from the date of retirement until reinstatement.
Headnote
A) Service Law - Voluntary Retirement - Withdrawal of Offer - An employee who submits an application for voluntary retirement can withdraw the same before the expiry of the notice period, as the retirement becomes effective only after the notice period ends - The employer's refusal to allow withdrawal is unjustified and liable to be set aside - Held that the petitioner is entitled to reinstatement with continuity of service and back wages (Paras 4-6).
Issue of Consideration
Whether an employee can withdraw an offer of voluntary retirement before the expiry of the notice period, and whether the employer's refusal to permit such withdrawal is justified.
Final Decision
The court allowed the writ petition, quashed the communications dated 14.05.2008 and 31.05.2008, and directed the respondents to reinstate the petitioner with continuity of service and full back wages from the date of retirement until reinstatement.
Law Points
- Voluntary retirement offer can be withdrawn before expiry of notice period
- Regulation 20 of Punjab National Bank (Officers) Service Regulations
- 1979 analogous
- Right to withdraw before acceptance or before effective date
- Reinstatement and back wages upon illegal refusal
