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1998 Supreme(SC) 434

SUPREME COURT OF INDIA
G.N. RAY AND M. SRINIVASAN, JJ.
Nand Keshwar Prasad, Appellant
Versus
M/s. Indian Farmers Fertilizers Cooperative Ltd. and others, Respondents.
Civil Appeal No. 1956 of 1998, (arising out of S.L.P. (C) No. 9687 of 1992), D/- 1-4-1998.

A voluntary resignation, once accepted by the employer, cannot be withdrawn by the employee unless it is done before the resignation becomes effective.

Headnote:

VOLUNTARY RESIGNATION - U.P. INDUSTRIAL DISPUTES ACT, 1947 - SECTION 4A - WITHDRAWAL OF RESIGNATION - EFFECTIVITY OF RESIGNATION - INTERPRETATION OF VOLUNTARY RESIGNATION AND ITS WITHDRAWAL - COURT'S ANALYSIS OF THE FACTS AND CIRCUMSTANCES OF THE CASE.

Fact of the Case:

An employee, N.K. Prasad, submitted a letter of resignation on September 28, 1983, which was accepted by the employer. However, on September 30, 1983, the employee informed the employer that the resignation was not voluntary and should not be given effect to. The employer refused to allow the employee to resume his duties, and the employee challenged the termination of his service before the Labour Court and the High Court.

Finding of the Court:

The Labour Court found that the resignation was voluntarily tendered by the employee and dismissed the proceedings. The High Court upheld the Labour Court's decision, finding that the employee had voluntarily resigned and had not returned the salary paid to him for the period covered by the resignation letter.

Issues: 1. Whether the employee's resignation was voluntary or coerced. 2. Whether the employee could withdraw the resignation before it became effective. 3. Whether the employer was justified in terminating the employee's service.

Ratio Decidendi: 1. The court held that the employee's resignation was voluntary and had been accepted by the employer. 2. The court held that the employee did not intimate that he intended to withdraw the letter of voluntary resignation before the expiry of the date from which the resignation was to take effect. 3. The court held that the employer was justified in terminating the employee's service since the resignation was voluntary and the employee did not withdraw it before it became effective.

Final Decision: The court dismissed the employee's appeal, finding that there was no merit in the case and that the High Court had correctly upheld the Labour Court's decision.

Judgement

JUDGMENT :- Leave granted.

2. Heard learned counsel for the parties. The appeal is directed against Order dated 25th March, 1992 passed by the Allahabad High Court in Civil Misc. Writ Petition No. 17386 of 1985 (reported in 1992 Lab IC 2257). By the impugned judgment, the High Court dismissed writ petition assailing the award passed by the Labour Court, Allahabad in Abahi-V No. 43 of 1984. The said proceedings before the Labour Court arose out of a Reference made under Section 4A of U.P. Industrial Disputes Act, 1947 for decision of the question whether it was correct and legal not to take on duty their employee N.K. Prasad, Tachnical/Printing Operator by the employer on 22-1-1984 if not, what gain/relief, the concerned employee is entitled for and with what other detail. By the Award dated 12-6-1985 the Labour Court dismissed the said proceedings inter alia on the finding that the concerned employee had tendered resignation voluntarily which was acted upon by the employer and it was appropriate and legal not to take the said employee on duty by the employer and the said employee was also not entitled to any relief.

3. Such award was challenged before the High Court by filing a writ petition which has been dismissed by the High Court. The High Court has indicated that the employee had tendered resignation voluntarily and such resignation had been accepted by the employee who had also forwarded the salary for the period mentioned in the letter of resignation and the concerned employee had also accepted such payment, but had not returned the same even though he disputed the case of voluntary resignation. The High Court was of the view that as the said voluntarily resignation had been accepted the service of the employee had come to an end. Therefore, no interference was called for against the impugned award of the Labour Court.

4. Mr. Agarwal, the learned senior counsel appearing for the appellant has contended that the letter of resignation had not been voluntarily and willingly given by the appellant, but since he was threatened with proposed departmental proceedings he was coerced to submit a letter purporting to be a voluntary resignation on 28th September, 1983. But when by the letter dated 30th September, 1983, the appellant was informed about the acceptance of the alleged voluntary resignation, he, in writing, protested against such acceptance by contending that such resignation was not voluntarily given by him and such resignation should not be given effect to and he would be permitted to join his duty.

5. Mr. Agarwal has submitted that unfortunately the Labour Court has come to the finding that the resignation was voluntarily tendered by the appellant. Therefore, the appellant is constrained to proceed on the footing that the letter of resignation had been voluntarily given by him. He has, however, submitted that even then the appellant had indicated his intention to withdraw the said letter of resignation in no uncertain term. Mr. Agarwal has submitted that the law is well-settled that if a resignation is to take effect from a prospective date and before the expiry of such date, if, the person tendering resignation intends to withdraw the same, no effect can be given to such voluntary resignation. Therefore, in any event, such intention having been made known to the concerned authority, the said resignation letter had lost its force before it could become 559 effective. In the aforesaid facts, it was not permissible for the employer to advance the date of resignation and to accept the same from such advanced date.

6. In support of such contention, Mr. Agarwal has referred to the decisions of this Court reported in (1978) 2 SCC 301 : (AIR 1978 SC 694, 1989 Suppl (2) SCC 175 : (AIR 1989 SC 1083), 1987 Suppl SCC 228 : (AIR 1987 SC 2354). Relying on the aforesaid decisions, Mr. Agarwal has submitted that on first of October, 1983, namely, three days after the said letter of resignation, the appellant informed the conce









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