Supreme Court Allows Reinstatement Of An Employee Holding That “The Resignation Was Withdrawn Before Its Acceptance”

Recently, the Supreme Court (SC) of India allowed the reinstatement of an employee to the Railways, holding that the resignation was withdrawn before its acceptance. The bench of Justice PS Narasimha and Justice Pankaj Mithal was hearing the question that arises in disputes involving withdrawal of the resignation letter, i.e. whether the employee has withdrawn his resignation before its acceptance by the employer or not. In this case, the appellant has served the respondent (Konkan Rail Corporation) since 1990. After 13 years of service, he tendered his resignation on December 05, 2013, stating that it may be considered as coming into effect on the expiry of one month. The respondent stated that the resignation letter was accepted on December 15, 2014 w.e.f from April 07, 2014. It added that the appellant sought to withdraw his resignation dated December 05, 2013, only on May 05, 2014, which could not be accepted and therefore, they rejected the request on June 23, 2014, and relieved the appellant w.e.f. July 01, 2014. 

On the other hand, the appellant submitted that the letter dated April 15, 2014, was never issued to him. It was only an internal communication of the respondent. He added that the said communication was not even marked to the appellant and it has no reference to the appellant’s resignation letter dated December 05, 2013. “That, it is an internal communication is also evidenced by the fact that it does not fix any date for relieving, instead it directed necessary action like no dues certificate etc. to be given to the appellant before relieving him.” The appellant added that he continued in service despite the initial letter dated December 05, 2013, and had in fact reported on May 19, 2014. He relied on the letter dated May 10, 2014, issued by the respondent directing him to report to duty pursuant to his application dated April 24, 2014, for casual leave for two days i.e. for the 25th and 26th of April 2014. He also relied on letters of his wife dated April 17, 2014, and May 20, 2014, requesting the respondent not to accept her husband’s resignation. 

Against relieving him from services, the appellant approached the Karnataka High Court where the Single judge bench passed the judgment in favor of the appellant whereas the same was reversed by the Division bench of the HC. Aggrieved by the same, the matter was heard by the Supreme Court. The SC observed, “The respondent-employer strongly relies on the letter of acceptance of resignation dated 15.04.2014 and submits that it has come into effect from 07.04.2014. We are inclined to accept the submission made by the appellant that the letter dated 15.04.2014 is an internal communication. There is no clear evidence about the service of such letter on the appellant. Further, it is also not denied that the appellant has been continuously in touch with the respondent.” The bench added, “...asking the appellant to report on duty for considering his unauthorized absence from 28.04.2014 to 18.05.2014 which gives an indication that there was no finality to the letter of resignation dated 05.12.2013.” 

After hearing the matter, the SC upheld the decision of the Single-judge bench of the HC. The Single Judge said, “In the circumstances, I am of the view that petitioner having submitted his letter dated 26.5.2014 seeking to withdraw the resignation much before the effective date, 01.07.2014 with official order on 15.07.2014 by which the petitioner was relieved of his duties, withdrawal of resignation ought to have been accepted by the respondents and continued the petitioner in service. The contrary decision by the respondents by the communication dated 23.06.2014 that withdrawal of resignation is not accepted and decision accepting the resignation stands good, is not sustainable in law….” At last, the top court said, “...we direct that the appellant shall be reinstated into service within thirty days from the date of our order. He shall however be entitled to receive 50 percent of salary for the period he is said to have been relieved from service i.e. from 01.07.2014 under letter dated 23.06.2014 to the date of reinstatement, pursuant to our orders. The amount shall be calculated and paid within a period of two months from today. This period shall however be counted for pensionary benefits, if any.”