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Smart Summary

Factual and Procedural Background

The appellant submitted a three-month notice for voluntary retirement on 3-10-1989, specifying 31-1-1990 as the effective date. The competent authority accepted this notice on 2-11-1989. Before the retirement date arrived, the appellant sought to withdraw his notice through a letter dated 11-12-1989. The respondents rejected this withdrawal request on 26-12-1989. Aggrieved, the appellant approached the Central Administrative Tribunal, which held that the retirement had already taken effect on 31-1-1990 and that the appellant was estopped from withdrawing his notice because he had relinquished charge. The present appeals challenge that Tribunal decision.

Legal Issues Presented

  1. Whether an employee who has tendered a notice of voluntary retirement, accepted by the employer, retains the right (locus poenitentiae) to withdraw that notice before the stipulated retirement date.
  2. If such withdrawal is permissible, whether the employee is entitled to salary and other service benefits for the period between the proposed retirement date and his actual date of superannuation.

Arguments of the Parties

Appellant's Arguments

  • The withdrawal letter dated 11-12-1989 was issued before the retirement became effective on 31-1-1990; therefore, the appellant had the legal right to revoke his voluntary retirement notice.
  • Consequently, he remained in continuous service until his normal date of superannuation in 1994 and is entitled to all attendant monetary and pensionary benefits.

Respondents' Arguments

  • The appellant had already relinquished charge, and the retirement took effect on 31-1-1990; hence he was estopped from withdrawing the notice.
  • Even if reinstated, the principle of “no work, no pay” should deny him back salary and benefits for the period he did not actually work.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Balram Gupta v. Union of India, 1987 Supp SCC 228; (1987) 5 ATC 246 An employee may withdraw a notice of voluntary retirement any time before the retirement actually comes into effect. The Court relied on this decision to affirm that the appellant possessed locus poenitentiae to withdraw his notice prior to 31-1-1990, rendering the rejection dated 26-12-1989 unsustainable.

Court's Reasoning and Analysis

The Supreme Court held that the controlling principle laid down in Balram Gupta governs the present case: acceptance of a voluntary retirement notice does not extinguish the employee’s right to revoke it before the specified retirement date. Observing that the appellant’s withdrawal request (11-12-1989) preceded the effective date (31-1-1990), the Court found that the respondents’ refusal on 26-12-1989 was legally untenable. The Tribunal’s view that relinquishment of charge created an estoppel was rejected; relinquishment occurred only because the respondents’ refusal left the appellant with no alternative. On the monetary issue, the Court dismissed the “no work, no pay” argument, reasoning that the appellant was willing to work and was prevented from doing so by the respondents. Therefore, full salary, increments, and recalculated pensionary benefits were ordered, subject to adjustment of amounts already paid.

Holding and Implications

APPEALS ALLOWED; ORDERS OF THE TRIBUNAL AND THE RESPONDENTS DATED 26-12-1989 SET ASIDE. The appellant is deemed to have validly withdrawn his voluntary retirement, to have continued in service until his normal superannuation in 1994, and is entitled to all consequential monetary and pensionary benefits, payable within eight weeks.

The decision reinforces the precedent that an employee retains the right to withdraw a notice of voluntary retirement before it takes effect and clarifies that employers cannot invoke “no work, no pay” when they themselves prevented the employee from working.

    J.N Srivastava v. Union Of India And Another

    1. Leave granted.

    2. With the consent of learned counsel for the parties the appeals were heard finally.

    3. The short question is whether the appellant was entitled to withdraw his voluntary retirement notice of three months submitted by him on 3-10-1989 which was to come into effect from 31-1-1990. It is true that this proposal was accepted by the authorities on 2-11-1989. But thereafter before 31-1-1990 was reached, the appellant wrote a letter to withdraw his voluntary retirement proposal. This letter is dated 11-12-1989. The said request permitting him to withdraw the voluntary retirement proposal was not accepted by the respondents by communication dated 26-12-1989. The appellant, therefore, went to the Tribunal but the Tribunal gave him no relief and took the view that the voluntary retirement had come into force on 31-1-1990 and the appellant had given up the charge of the post as per his memo relinquishing the charge and consequently, he was estopped from withdrawing his voluntary retirement notice. In our view the said reasoning of the Tribunal cannot be sustained on the facts of the case. It is now well settled that even if the voluntary retirement notice is moved by an employee and gets accepted by the authority within the time fixed, before the date of retirement is reached, the employee has locus poenitentiae to withdraw the proposal for voluntary retirement. The said view has been taken by a Bench of this Court in the case of Balram Gupta v. Union of India 1987 Supp SCC 228, (1987) 5 ATC 246. In view of the aforesaid decision of this Court it cannot be said that the appellant had no locus standi to withdraw his proposal for voluntary retirement before 31-1-1990. It is to be noted that once the request for cancellation of voluntary retirement was rejected by the authority concerned on 26-12-1989 and when the retirement came into effect on 31-1-1990 the appellant had no choice but to give up the charge of the post to avoid unnecessary complications. He, however, approached the Tribunal with the main grievance centering round the rejection of his request for withdrawal of the voluntary retirement proposal. The Tribunal, therefore, following the decision of this Court ought to have granted him the relief. We accordingly, allow these appeals and set aside the orders of the Tribunal as well as the order of the authorities dated 26-12-1989 and directed the respondents to treat the appellant to have validly withdrawn his proposal for voluntary retirement with effect from 31-1-1990. The net result of this order is that the appellant will have to be treated to be in service till the date of his superannuation which is said to be somewhere in 1994 when he completed 58 years of age. The respondent-authorities will have to make good to the appellant all monetary benefits by treating him to have continuously worked till the date of his actual superannuation in 1994. This entitles him to get all arrears of salary and other emoluments including increments and to get his pensionary benefits refixed accordingly. However, this will have to be subject to adjustment of any pension amount and other retirement benefits already paid to the appellant in the meantime up to the date of his actual superannuation. It was submitted by learned Senior Counsel for the respondent-authorities that no back salary should be allowed to the appellant as the appellant did not work and therefore, on the principle of “no work, no pay”, this amount should not be given to the appellant. This submission of learned Senior Counsel does not bear scrutiny as the appellant was always ready and willing to work but the respondents did not allow him to work after 31-1-1990. The respondents are directed to make available all the requisite monetary benefits to the appellant as per the present order within a period of 8 weeks on the receipt of copy of this order at their end. Office shall send the same to the respondents at the earliest.

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    J.N Srivastava v. Union Of India And Another
    (Sep 22, 1997)