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1996 Supreme(AP) 259

Andhra Pradesh High Court
Judges : M.H.S.ANSARI, P.S.MISHRA
The Chief Manager, Andhra Bank, hyderabad - Appellant
Versus
K.Sudha Nagaraj - Respondent
Decided On : 04-01-96

An employee can withdraw a resignation at any time before it becomes effective, and the bank cannot accept a resignation with immediate effect without the employee's request.

Headnote:

RESIGNATION - WITHDRAWAL - BANK EMPLOYEE - REGULATION 20 (2) OF THE BANK - INTERPRETATION - EMPLOYEE CAN WITHDRAW RESIGNATION AT ANY TIME BEFORE IT BECOMES EFFECTIVE - BANK CANNOT ACCEPT RESIGNATION WITH IMMEDIATE EFFECT WITHOUT EMPLOYEE'S REQUEST - RESIGNATION BECOMES EFFECTIVE WHEN IT OPERATES TO TERMINATE EMPLOYMENT OR OFFICE TENURE OF RESIGNER.

Fact of the Case:

An employee of a bank sent a letter of resignation on 19-1-1990, followed by two more letters on 19-2-1990 and 27-2-1990, expressing her desire to withdraw her resignation. The bank, however, did not respond to these communications and later terminated her services on the ground that she had not worked continuously for one month during the notice period as required by the bank's regulations.

Finding of the Court:

The court held that the bank's order terminating the employee's services was invalid as she had withdrawn her resignation before it became effective. The court relied on the Supreme Court's decision in Union of India vs. Gopal Chandra, which held that a prospective resignation can be withdrawn at any time before it becomes effective.

Issues: Whether an employee can withdraw a resignation before it becomes effective.

Ratio Decidendi: The court held that an employee can withdraw a resignation at any time before it becomes effective. The court interpreted Regulation 20 (2) of the Bank's regulations, which required employees to give three months' advance notice of resignation, as not empowering the bank to accept a resignation with immediate effect without the employee's request. The court also held that the employee's resignation did not become effective automatically upon the expiry of the one-month notice period, as she had continued to work after the expiry of the period and the bank had not communicated its acceptance of the resignation.

Final Decision: The court dismissed the bank's appeal and upheld the single judge's decision that the bank's order terminating the employee's services was invalid.

P. S. MISHRA, C. J.

( 1 ) HEARD learned counsel for the appellants. Writ petitioner - respondent sent a letter of resignation on 19-1-1990 stating inter alia as follows:"i, the undersigned, working in the Bank since 29-3-79, presently working in Gaganmahal Road Branch, wish to tender my resignation due to domestic reasons. Kindly accept my resignation and relieve me as early as possible. "

( 2 ) SHE followed the above by writing another letter dated 19-2-1990 and yet another letter dated 27-2-1990 in which she stated inter alia:"i had tendered my resignation on 19-1-90, wherein I had given a notice of one month. However, I had to proceed to Warangal on the 12th of Feb. 1990. As such, I could not put in continuous service of 30 days, during the notice period, in accordance with the rules in force. Later, I could only attend for a few days. As I do not intend to continue further in the bank, I request you to adjust all my dues and send my terminal benefits or dues, if any, to the address given above. . . . . . . "

( 3 ) BEFORE, however, the appellant-bank responded to the communications of the writ petitioner-respondent, the latter wrote a letter on 19-9-1990 that she was withdrawing her resignation. The appellant-bank mis time responded vide its letter dated 13-2-1991 stating inter alia;"with reference to your letter dt. 19-9-90, addressed to our General manager (Personnel), requesting to permit to withdraw of your resignation letter dt. 19-1-1990, we inform you that your request has not been considered favourably. Hence, we hereby relieve you from the Bank services from 28-3-90 which was the last working at our branch. "

( 4 ) LEARNED single Judge has held on the above facts that the bank s order terminating the services of the writ petitioner-respondent on the alleged letter of resignation is invalid.

( 5 ) THE Supreme Court in its majority judgment in Union of India vs. Gopal chandra has stated categorically that in the absence of a legal, contractual or constitutional bar, a prospective resignation can be withdrawn at any time before it becomes effective and it becomes effective when it operates to terminate the employment or the office tenure of the resigner. In the case of punjab National Bank vs. P. K. Mittal the Supreme Court has dealt with the regulation 20 (2) of the Bank (it has been contended before us on behalf of the appellants that they have a similar provision)and interpreted the same as follows:"6. Much reliance was placed on the terms of the proviso to clause (2) of regulation 20 to justify the action of the bank in terminating the respondent s services earlier but we do not think that the proviso can be interpreted in the manner suggested by learned counsel for the bank. The resignation letter of the officer has to give at least three months advance notice under the main part of the clause. What the proviso contemplates is that in a case where the employee desires that his resignation should be effective even before the expiry of the period of three months or without notice being given by him, the bank may consider such a request and waive the period or requirement of notice if it considers it fit to do so. That question does not arise in the present case because the employee had not requested the bank to reduce the period of notice or to waive the requirement of notice. Dr. Anand Prakash seeks to interpret the proviso as empowering the bank, even without any request on the part of the employee, to reduce the period or waive the requirement of notice. In other words, he says the bank has power to accept the resignation with immediate effect even though the notice is only of a proposed future resignation. We do not think this contention can be accepted. As we have already mentioned, resignation is a voluntary act of an employee. He may choose to resign with immediate effect or with a notice of less than three months if the bank agrees to the same. He may also resign at a future date on the expiry, or beyond the



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