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 Under the applicable regulations, the notice period for voluntary retirement was three months, and the offer could be withdrawn within that period.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/- as he had stood surety for 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 an appeal to the Deputy Chairman on 18.05.2008 was rejected 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 to permit withdrawal of the retirement offer, along with reinstatement and back wages. The court, relying on the Supreme Court judgment in Punjab National Bank v. P.K. Mittal (1989 Supp (2) SCC 175), held that the withdrawal was valid as it was made before the expiry of the notice period. The court found the respondents' refusal unjustified and directed them 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 can withdraw an offer of voluntary retirement before the expiry of the notice period, and the employer cannot refuse such withdrawal if made within the stipulated period - The court relied on the principle that resignation or retirement becomes effective only after the notice period expires, and until then, the offer can be withdrawn - Held that the petitioner's withdrawal on 09.05.2008 was within the three-month notice period and thus valid (Paras 4-6). B) Service Law - Reinstatement and Back Wages - Consequential Relief - Once the withdrawal of voluntary retirement is allowed, the employee is entitled to reinstatement with continuity of service and back wages from the date of retirement till reinstatement - The court directed the respondents to reinstate the petitioner with full back wages and continuity of service (Paras 6-7).
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, directed the respondents to permit withdrawal of the voluntary retirement offer, and ordered reinstatement with continuity of service and full back wages from the date of retirement till reinstatement.
Law Points
- Voluntary retirement offer can be withdrawn before expiry of notice period
- Regulation 20 of Punjab National Bank (Officers) Service Regulations
- 1979
- principle of Shyam Sundar v. Punjab National Bank
