The resignation becomes effective only upon communication of acceptance, and the employee has the right to withdraw the resignation before its acceptance becomes effective.

V. P. MOHAN KUMAR, J.

( 1 ) THE respondent is an employee of the corporation. The issue is as whether a resignation submitted once and accepted by the employer could be withdrawn by the employee. The employee in question submitted this resignation on 5-2-1994. It is alleged that it was accepted by the employer on 8-2-1994. But on 9-2-1994 before its communication or rather it became effective, the worker withdrew the same. On 11-2-1994 the order of acceptance was communicated and he was relieved of his duties and he was refused work. The worker thereupon raised a dispute before the labour court. It was defended by the employer contending that the resignation had become effective on 8-2-1994 on acceptance itself and the same could not have been withdrawn on 9-2-1994. It was hence contended that employer was justified in terminating the services of the worker.

( 2 ) THE labour court upheld the contention of the employer and rejected the reference. The worker filed the writ petition from which the above appeal arises. The learned single judge after exhaustive consideration of the questions involved held that as on the date of withdrawal of the resignation the acceptance has not become effective and the termination as such is bad. This court ordered reinstatement of the worker but without back wages. This order is challenged before this court.

( 3 ) AN identical question now raised by the appellant have been considered by the Supreme Court in shambhu murari sinha v project and development India and another. The fact giving rise to the said case is as follows:"5. From the facts stated above, it would be seen that though the option of voluntary retirement exercised by the appellant by his letter dated 18-10-1995 was accepted by the respondent-management by their letter dated 30-7-1997, the appellant was not relieved from service and he was allowed to continue in service till 26-9-1997, which, for all practical purposes, would be the "effective date" as it was on this date that he was relieved from service. In the meantime, as pointed out above, the appellant had already withdrawn the offer of voluntary retirement vide his letter dated 7-8-1997. The question which, therefore, arises in this appeal is whether it is open to a person having exercised option of voluntary retirement to withdraw the said offer after its acceptance but before it is made effective. The question is squarely answered by the three decisions, namely, balrdm gupta v union of india; j. n. srivastava v union of India and power finance corporation limited v pramod kumar bhatia, in which it was held that the resignation in spite of its acceptance, can be withdrawn before the "effective date". That being so, the appeal is allowed. The impugned judgment of the high court is set aside with the direction that the appellant shall be allowed to continue in service with all consequential benefits. There will, however, be no order as to costs".

( 4 ) THE question therefore was as to what is the effective date from which the acceptance would come into operation. The Supreme Court has taken the view that effective date from which the acceptance comes into force is the date of communication of the acceptance and if before that time the employee had withdrawn the resignation, withdrawal is valid and the contract of employment is not terminated.

( 5 ) IT is a settled law that an order becomes effective only on communication. It is not enough that an order is made and kept in the file. It would take effect only on communication and from the date the communication is received. Hence, if before the said date, resignation letter the basis on which the order is made, is rescinded, then, the acceptance will have no field to operate. Employment is a contract between the employer and the employee. One mode of its termination is by means of resignation. The contract would be brought to an end by tendering resignation by the employee. The resignation becomes effective only when the person

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