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  • India Act, 1964. Service
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Smart Summary

Factual and Procedural Background

The petitioner (Sh. S.K. Sharma) was an employee of the Food Corporation of India (FCI) and had completed the qualifying service enabling voluntary retirement under Regulation 22-A of the Food Corporation of India (Staff) Regulations, 1971. On 1.4.1997 the petitioner submitted a proforma application giving the three months' notice required by Regulation 22-A, indicating that voluntary retirement was sought w.e.f. 30.6/1.7.1997 (notice period of three months from 1.4.1997).

On 9.6.1997 the Competent Authority accepted the petitioner's request for voluntary retirement with effect from 1.7.1997. Before the intended retirement date, the petitioner submitted an application dated 7.6.1997 seeking to withdraw his voluntary retirement notice (respondent claims the withdrawal request was received on 11.6.1997). On 27.6.1997 the respondent rejected the withdrawal on the ground that the request for voluntary retirement had already been accepted on 9.6.1997.

The petitioner made a representation on 16.7.1997 which was rejected on 28/29.7.1997. Subsequent representations were made between 1997 and 2000 without success. The present petition was filed on 25.5.2000 challenging the orders dated 9.6.1997 (acceptance of voluntary retirement) and 27.6.1997 (rejection of the withdrawal).

Legal Issues Presented

  1. Whether a petitioner's request to withdraw a notice of voluntary retirement, made before the intended date of retirement, can be refused by the Competent Authority once the notice has been accepted.
  2. Whether acceptance of a notice of voluntary retirement prior to the receipt of a withdrawal application prevents the employee from exercising the locus poenitentiae (right to withdraw) before the expiry of the notice period.
  3. What reliefs and consequential directions should follow if the withdrawal is held to be permissible (including reinstatement, back wages, effect on transfer orders, and the employer's right to take disciplinary action), particularly where there has been delay in approaching the court.

Arguments of the Parties

Petitioner's Arguments

  • Relied on the judgment in J.N. Srivastava v. Union of India (1998) that even if a voluntary retirement notice has been accepted, the employee may withdraw the notice before the expiry of the notice period; thus the petitioner's withdrawal before 30.6.1997 should be permitted and he should be reinstated.

Respondent's Arguments

  • The respondent contended that the petitioner adopted a strategy to defeat his transfer: instead of complying with transfer orders, he applied for voluntary retirement and then produced an anti-dated withdrawal request after acceptance.
  • Respondent asserted that necessary administrative/alternative arrangements had been made after acceptance, and hence withdrawal could not be permitted.
  • As an alternative, respondent urged the court to consider delay in filing the petition (filed on 25.5.2000) and to mould relief—specifically to deny back wages—if the court ordered reinstatement; respondent also sought preservation of its right to take disciplinary action for failure to report on transfer.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
J.N. Srivastava v. Union of India, 1998 (SCC (L&S) citation in the text) Holds that even where a three months' voluntary retirement notice was accepted, the employee could withdraw the notice before the expiry of the notice period. The Court applied this ratio to conclude that the petitioner's withdrawal made before the intended retirement date fell within the employee's locus poenitentiae and could not be defeated solely because acceptance had earlier been communicated.
Balram Gupta v. Union of India and Anr., AIR 1987 SC 2354 Approving authority must act reasonably and rationally; approval is not ipse dixit. Focus is on why the Government withheld withdrawal (i.e., objective administrative impact), not what prompted the employee to withdraw. The Court relied on this principle to hold that the Competent Authority had to give objective reasons related to administrative disruption if it intended to refuse withdrawal; mere acceptance of retirement did not suffice.
Mohinder Singh Gill & Anr. v. The Chief Election Commissioner, AIR 1978 SC 851 Public orders must be construed objectively from the language of the order itself; subsequent explanations by the authority cannot be used to reinterpret public orders. The Court invoked this principle to reject respondent's attempt to justify the refusal by adducing reasons not stated in the formal rejection order dated 27.6.1997.
Gurmail Singh v. Principal, Govt. College of Education & Ors., JT 1999 (10) SC 367 In cases of wrongful termination where the employee delayed approaching court, reinstatement may be allowed but denial of back wages can be justified. The Court applied this authority to deny the petitioner back wages for the period 1.8.1997 to 25.5.2000 because of the nearly three-year delay in filing the petition.

Court's Reasoning and Analysis

The Court began by examining Regulation 22-A of the FCI (Staff) Regulations, 1971 which permits voluntary retirement after completion of the qualifying service on three months' written notice to the Competent Authority; such notice requires acceptance and withdrawal of the notice is precluded except with specific approval of that authority. The proviso requires that any request for withdrawal be made before the intended date of retirement.

The petitioner had sought voluntary retirement on 1.4.1997 with the intended retirement date falling on 30.6/1.7.1997. The petitioner sought withdrawal before that intended retirement date. The respondent relied on the fact that acceptance had been communicated on 9.6.1997 and therefore refused the withdrawal on 27.6.1997.

The Court analysed the legal position by reference to binding precedents. It observed that J.N. Srivastava's ratio establishes that a withdrawal made before the expiry of the notice period is permissible even where the notice has earlier been accepted. The Court then considered the question whether the Competent Authority could lawfully deny approval and under what circumstances. Relying on Balram Gupta, the Court held that the approving authority must act reasonably and rationally; the focus is on whether administrative arrangements would be affected by allowing withdrawal, not on the employee's motives for withdrawing.

The Court further applied the principle in Mohinder Singh Gill to conclude that a public authority could not later justify its order by extraneous explanations not reflected in the public order itself. The respondent's rejection order of 27.6.1997 gave only one reason — that acceptance had already been communicated — and did not state any administrative disruption or changes in arrangements that would prevent allowing withdrawal.

On these bases the Court found the respondent's stated reason to be contrary to law and held that the petitioner's request for withdrawal (made before the intended retirement date) should have been considered in accordance with the legal principles mentioned above. Consequently, the Court quashed the impugned orders and directed reinstatement with effect from 1.7.1997.

Addressing consequential reliefs, the Court noted the near three-year delay in approaching the Court (representations were rejected by 28/29.7.1997 but the petition was filed on 25.5.2000). Applying the principle in Gurmail Singh, the Court concluded that reinstatement could be ordered while denying back wages for the delayed period. The Court therefore denied back wages from 1.8.1997 to 25.5.2000 and permitted the respondent to take disciplinary action for the petitioner's failure to report to the place of posting under the transfer order dated 10.3.1997.

Holding and Implications

Core Holding: The petition is allowed; the impugned orders dated 9.6.1997 (acceptance of voluntary retirement) and 27.6.1997 (rejection of withdrawal) are quashed and the petitioner is reinstated in service with effect from 1.7.1997.

Consequential directions and implications:

  • The petitioner is reinstated effective 1.7.1997 as a direct consequence of quashing the two impugned orders.
  • The petitioner is not entitled to any wages for the period from 1.8.1997 up to 25.5.2000 (the date of filing of the petition), because of the delay in approaching the Court; this follows the approach in Gurmail Singh.
  • The respondent is permitted to take disciplinary action against the petitioner for failing to report to his place of posting following the transfer order dated 10.3.1997; this right of the department is preserved by the Court.
  • No broader or novel legal principle was announced by this judgment beyond applying existing authorities to the facts: the decision addresses the parties' rights and remedies in this specific factual context rather than laying down a new precedent.

    S.K Sharma Petitioner v. Food Corporation Of India & Ors. S

    Pradeep Nandrajog, J.:—Petitioner challenge the orders dated 9.6.1997 and 27.6.1977 By the first order, petitioner's offer seeking voluntary retirement was accepted and it was directed that petitioner shall voluntarily retire w.e.f 1.7.1997 and by the latter, petitioner's request, by way of application dated 7.6.1997, seeking to withdraw his application whereunder he sought voluntary retirement was rejected.

    2. Respondent is the Food Corporation of India established under the Food Corporation of India Act, 1964. Service of its employees is regulated by the Food Corporation of India (Staff) Regulations, 1971, which are statutory regulations framed in exercise of power vested under Section 45 of the Act.

    3. Petitioner joined service under the Government of India in the Food Department and was transferred to the Corporation w.e.f 1.3.1965

    4. Regulation 22-A of the Regulations gives an option to the employees of the Corporation to seek voluntary retirement. Relevant part of Regulation 22-A reads as follows:

    22-A. Voluntary retirement of employees on completion of 20 years of qualifying service-CD At any time after an employee has completed 20 years of Qualifying Service, he may, by giving notice of not less than three months in writing to the Competent Authority, retire from service of the Corporation.

    (2) The notice of voluntary retirement given under Sub-Regulation (1) shall require acceptance by the Competent Authority.

    (6) The employee of the Corporation who is allowed to retire under his Regulation and has given the necessary notice to that effect to the Competent Authority should be precluded from withdrawing his notice except with the specific approval of such authority.

    5. As on 1.4.1997 the petitioner was posted as Deputy Manager under the respondent. On 1.4.1997, petitioner submitted his application seeking voluntary retirement. The application was submitted as per the proforma prescribed. Following was intimated vide serial numbers 6 and 7 of the proforma:

    6. Date from which voluntary 30.6.1997 retirement is sought. Notice Period Three months w.e.f 1.4.1997

    6. On 7.6.1997 i.e before expiry of 3 months statutorily prescribed minimum notice period, petitioner submitted an application to withdraw his request for voluntary retirement. Respondent claims that this request was actually delivered on 11.6.1997 If that be so, it is irrelevant since 3 months’ notice period would come to an end on 30.6.1997

    7. On 9.6.1997, the respondent accepted the petitioner's request seeking voluntary retirement. Said order reads as under:

    “The request dated 1.4.97 submitted by Sh. S.K Sharma DM (QC) for voluntary retirement from FCI under Regulation 22(1) of Food Corporation of India (Staff) Regulations, 1971 has been accepted by the Competent Authority. Accordingly, Sh. S.K Sharma, DM (QC) shall retire voluntarily with effect from 1.7.97 from the Food Corporation of India under Regulation 22(A) of Food Corporation of India (Staff) Regulations, 1971.

    8. Respondent claims that acceptance was prior to date of receipt of the request to withdraw the notice seeking voluntary retirement.

    9. On 27.6.1997, the respondent rejected the petitioner's request seeking withdrawal of the notice of voluntary retirement. Following was communicated:

    “Sir,

    Please refer to your application dated 7.6.97 requesting therein for withdrawal of application dated 1.4.97 for voluntary retirement. In this connection it is informed that your request vide application dated 1.4.97 for voluntary retirement under Regulation 22-A of the FCI (Staff) Regulations 1971 has already been accepted by the Competent Authority and orders for the same has already been issued vide order of even No. dated 9.6.97 As such withdrawal of your application dated 1.4.97 for voluntary retirement cannot be allowed at this stage.”

    10. As noted in para 1 above, orders dated 9.6.1997 and 27.6.1997 are impugned. Petitioner submitted a representation on 16.7.1997 pointing out that he was entitled to withdraw his request seeking voluntary retire ment during the notice period which was upto 30.6.1997 and he having done so, be permitted to join duty. This was rejected on 28/29.9.1997. Fol lowing was intimated:

    “With reference to his representation dated 16.7.97, on the subject, Shri S.K Sharma Ex-DM (QC) is hereby informed that his request for withdrawal of voluntary retirement notice has been examined but the same has not been agreed to.”

    11. Petitioner made representations on 28.10.1997, 12.12.1997, 23.6.1998, 25.5.1999, 18.8.1999, 15.12.1999, 13.3.2000 and 16.4.2000 re questing for a reconsideration. There being no response from the respon dent, present petition was filed.

    12. Response of the respondent in the counter-affidavit filed is that on 10.3.1997 the petitioner was transferred out from Delhi. He did not report for duty at his new place of posting. On 27.3.1997 he was directed to report to the Sr. Regional Manager, Punjab. Instead of complying with the said order, petitioner submitted his application for voluntary retirement. Acceptance was communicated on 9.6.1997 Thereafter on 11.6.1997 the respondent received an anti-dated letter dated 7.6.1997 seeking to withdraw the application seeking voluntary retirement. It was not accepted since petitioner's request for voluntary retirement was already accepted.

    13. Relying on the judgment of the Hon'ble Supreme Court, reported as 1998 SCC (L&S) J.N Srivastava v. U.O.I, learned Counsel for the petitioner contended that ratio of said judgment squarely applied to the present case and result must be the same. In said case, three months notice for voluntary retirement was given on 3.10.1989 which was to come into effect from 31.1.1990 Notice was accepted on 2.11.1989 Employee thereafter sought to withdraw his notice on 11.12.1989 It was held that even where the notice stood accepted, before the expiry of the notice period the employee could withdraw the same.

    14. Counsel for the respondent did not seriously dispute the legal position aforesaid. He contended that the petitioner had adopted a strategy to defeat his transfer by first seeking voluntary retirement and on it being accepted he anti-dated a request for withdrawal. The respon dent had in the meanwhile made necessary alternative arrangement and therefore, petitioner was not allowed to withdraw his notice. Counsel con tended that if this Court holds in favour of the petitioner on merits, effect of delay in finding the petition, which was filed on 25.5.2000 i.e after nearly 3 years, be considered to mould relief as the petitioner would be getting wages for doing no work. Counsel contended that in such eventuality of reinstatement, right of the department to take disciplinary action against the petitioner be protected as the effect of reinstatement would be, putting the clock back to 1997.

    15. Regulation 22-A; relevant part extracted in para 4 above applies. The aforesaid provision enjoins that an employee of the respondent can apply for voluntary retirement and for such purpose he has to give a notice of not less than 3 months in writing to the Competent Authority. The said notice given under Sub-regulation (1) of Regulation 22-A is to be accepted by the Competent Authority and then only the person could be allowed to retire from the services of the Corporation. It also envisages that an employee of the Corporation would be precluded from withdrawing his notice except with the specific approval of such authority. The proviso stipulates that the request for withdrawal shall be made before the intended date of his retirement. In the present case the petitioner filed his application initially for going on voluntary retirement from services of the Corporation as stipulated in Regulation 22-A(1). The petitioner submitted an application withdrawing his notice. Respondent claims that this was 2 days after it had accepted the offer seeking voluntary retirement, but said fact is irrelevant in light of judgment in J.N Srivastava's case noted in para 13 above. It is true that such withdrawal of the notice is not permitted without the specific approval of the authority. But in the present case the requirement of the proviso stands satisfied as the request for withdrawal was made by the petitioner before the intended date of retirement. Therefore, the only question that arises for my question is whether the Competent Authority could deny the approval to the petitioner for withdrawing his notice and if so under what circumstances? Similar question came up for consideration before the Supreme Court in Balram Gupta v. Union of India and Anr., AIR 1987 SC 2354. The facts in the said case were almost similar. In the said case, the Supreme Court has held that approval is not ipse dixit of the approving authority who as the statutory authority must act reasonably and rationally and what is important in this connection to be borne in mind is not what prompted the desire for withdrawal but what is important is what prompted the Government form withholding the withdrawal. It was further held that in the modern age, embargo could not be put upon people's choice or freedom. It was also held that unless it can be said that any administrative set up or arrangement was affected, permission should be granted to withdraw the request for voluntary retirement.

    16. Petitioner gave a reason for withdrawal. While rejecting the request for withdrawal, respondent did not state in the order dated 27.6.1997 that it had made changes in the administrative set up and so arranged its working that petitioner's request could not be accepted. It did not state that reasons urged during hearing as noted in para 12 above. In AIR 1978 SC 851, Mohinder Singh Gill and Anr. v. The Chief Election Commissioner, it was held:

    “Public orders publicly made, in exercise of a statutory authority cannot be construed in the light of explanations subsequently given by the officer making the order of what he meant, or of what was in his mind, or what he intended to do. Public orders made by public authorities are meant to have public effect and are intended to affect the acting and conduct of those to whom they are addressed and must be construed objectively with reference to the language used in the order itself. Orders are not like old wine becoming better as they grow order.”

    17. Respondent cannot therefore be allowed to urge reasons in support of its actions other than the one which finds mentioned in its order of rejection dated 27.6.1997 It gives only one reason, namely, that the respondent had accepted the request for voluntary retirement and therefore permission to withdraw cannot be given. The said reasons run contrary to the current of the law. Law being that before the date of retirement is reached, the employees has locus poenitentiae to withdraw the proposal for voluntary retirement. Ratio of J.N Srivsatava's case (supra) squarely applies. The impugned orders dated 9.6.1997 and 27.6.1997 must therefore go. They stand quashed. Petitioner would be entitled as a consequences to be reinstated in service with effect from 1.7.1997

    18. In the facts and circumstances, what should be the consequential directions. Should the petitioner be entitled to full back wages? Should the petitioner be entitled to get over his transfer posting? Should the respondent be entitled to take disciplinary action against the petitioner for not joining at his place of posting on transfer?

    19. Records show that when he made a representation on 16.7.1997 pointing out to the respondent as to why the order dated 27.6.1997 was bad in law, on 28/29.7.1997 the respondent rejected the representation. Petitioner ought to have approached the Court for redressal. Petitioner says he made further representations. In my opinion, non-statutory representations have no meaning. Stand of the respondent, may be wrong, was known to the petitioner on 28/29.7.1997. He should have approached the Court with reasonable dispatch. Petitioner sat at home and came to the Court 2 years and 10 months later. In a case of wrongful termination, where the workman delayed approaching the Court for reinstatement, the Hon'ble Supreme Court in its judgment reported as JT 1999 (10) SC 367, Gurmail Singh v. Principal, Govt. College of Education & Ors., held that rejection of the claim for reinstatement on grounds of delay was unjustified but denial of back wages was justified. Petitioner must suffer same fate. Petitioner's request for withdrawal of his request seeking voluntary retirement was rejected on 27.6.1997 His representation was rejected on 28/29.7.1997. I direct that while reinstating the petitioner he would not be entitled to any wages for the period 1.8.1997 till 25.5.2000, the date of filing of the petition. Respondent would also be permitted to take disciplinary action against the petitioner for not reporting to the place of posting on transfer vide order dated 10.3.1997

    20. Petition is allowed as per paras 17, 18 and 19 of the judgment above.

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    S.K Sharma Petitioner v. Food Corporation Of India & Ors. S
    (Jan 8, 2004)