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2003 Supreme(Kar) 469
Karnataka High Court
B.C.Shivanne Gowd - Appellant
Versus
The Hindustan Paper Corporation Limited - Respondent
Decided On : 06-16-03
W.A. : 8228 of 1999
S.N.MURTHY, Somashekar Angadi, Subba Rao, Z.N.Hansi
An employee has the right to withdraw the application under VRS before acceptance by the management, and any action by the management to terminate the employee's services in such a scenario would be unauthorized and in violation of principles of natural justice.
Headnote:
VOLUNTARY RETIREMENT - Employment Dispute - Mandya National Paper Mills Limited, Employees Voluntary retirement Scheme - Circular No. MNPM. 08/8730 - The court discussed the provisions of the VRS and the rights of the employee to withdraw the application before acceptance. The court emphasized the employee's right to withdraw the application under VRS before acceptance and cited relevant case law to support its decision.
Fact of the Case:
The appellant, an employee of Mandya National Paper Mills Limited, submitted an application for voluntary retirement under the VRS but later withdrew the application. The management terminated the appellant's services, leading to a legal dispute.
Finding of the Court:
The court found that the management's action in terminating the appellant's services was arbitrary and in violation of principles of natural justice.
Issues: The main issue was whether the termination of the appellant's services was justified and legal.
Ratio Decidendi: The court emphasized the employee's right to withdraw the application under VRS before acceptance and held that the management's action was unauthorized and in violation of principles of natural justice.
Final Decision: The court allowed the writ appeal, dismissed the management's appeal, quashed the termination order, and declared the appellant entitled to reinstatement with backwages and other benefits, except for the period from the date of termination till the order of the learned Single Judge. The court also directed the parties to bear their respective costs.
( 1 ) BOTH the appeals are directed against the same Judgment of the learned Single Judge of this Court dated 29th September 1999 in writ Petition No. 7118 of 1993. Hence, both the writ appeals were clubbed and heard together and they are being disposed of by this common Judgment.
( 2 ) THE facts, in brief, leading to the filing of the Writ Petition, be noted at the first instance and they are as follows: The appellant in writ Appeal 8228 of 1999, Sri B. C. Shivanne Gowd joined the services of the Mandya National Paper Mills Limited, (hereinafter referred to as the Company for the sake of brevity) in the year 1979 as Labour welfare Officer. He was promoted to the post of Personnel Officer during 1985. Subsequently, he was further promoted as Assistant manager (Personnel and Administration) in the year 1988 and as deputy Manager (Personnel and Administration) in the month of november, 1989.
( 3 ) SRI Shivanne Gowd while serving as Deputy Manager (Personnel and Administration), on 31-12-1992 submitted an application to the acting Chief Executive of the company seeking permission to retire voluntarily from the services of the company under a scheme called Mandya National Paper Mills Limited, Employees Voluntary retirement Scheme for short, the VRS. Subsequently, Sri B. C. Shivanne Gowd submitted a letter dated 28-1-1993 withdrawing his application submitted on 31-12-1992 under the VRS. That letter reads as follows. 28-1-1993 the Acting Chief Executive, mnpm Ltd, D G M (Works) belagula dear Sir, sub: VOLUNTARY RETIREMENT vide letter dated 31. 12. 1992 I have submitted application for voluntary retirement. Now, I intend to withdraw the application. Therefore, my above application for Voluntary Retirement may please be kept in abeyance for some more time. Thanking you, yours faithfully, (B. C. S. Gowd) dy. Manager (Panda)ON 29. 1. 1993, the Deputy General Manager (Works) on behalf of the Chief Executive of the company wrote a letter dated 29. 1. 1993 to Sri Shivanne Gowd which reads as follows:mnpm;08;6466;93 Date 29. 1. 1993 sri B. C. S. Gowd dy. Manager (Panda) p and A Department sub: Acceptance of your application for voluntary retirement ref: Your application dated 31. 12. 1992 with reference to your application dated 31. 12. 1992 for voluntary retirement from the services of the company under the company s Voluntary Retirement Scheme, we wish to inform you that your application for the same has been accepted by the management and you have been relieved from the duties of the company on the afternoon of 29. 1. 1993. You are hereby advised to contact the accounts Department during the working hours for settlement of your final dues after getting clearance certificate from all the departments concerned. DY GEN. MANAGER (WORKS) for CHIEF EXECUTIVEThis was followed by another letter of Sri Shivanne Gowd dated 1. 2. 1993, reference to which, for the purpose of decision-making in these appeals is not necessary and, hence, we do not dilate on it.
( 4 ) SRI Shivanne Gowd being aggrieved by the action of the management terminating his services with effect from the afternoon of 29. 1. 1993 filed the Writ Petition No. 7118 of 1993 in this Court in the Writ Petition it was contended by the petitioner that since the management had received the withdrawal letter on 28. 1. 1993 itself, it ought not to have accepted the application submitted by the petitioner on 31. 12. 1992 under the VRS.
( 5 ) THE learned Single Judge on consideration of the VRS notified vide Circular No. MNPM. 08/8730 dated 4th November 1988 produced as Annexure -A thought that the Management in the light of the provisions of sub-clause (iv) of clause (c) of the VRS ought not to have accepted the application submitted by the petitioner on 31. 12. 1992. Having so opined, but, at the same time feeling that the situation was brought about by the writ petitioner himself by submitting an application under the VRS and subsequently withdrawing the same, allowed the Writ P
