HINDUSTAN COPPER LTD. AND ANR. versus BANSHI LAL AND ORS.

HINDUSTAN COPPER LTD. AND ANR. versus BANSHI LAL AND ORS.

An offer made by employees under a voluntary retirement scheme (VRS), being contractual in nature, can be withdrawn before it is accepted in terms of the Indian Contract Act, 1872. Any contractual stipulation cannot override this principle. Employees who withdrew their offers before acceptance are entitled to reinstatement and continuation in service until superannuation, subject to adjustment of VRS amounts received.

Parties
Appellant: Hindustan Copper Ltd.; Respondent: Banshi Lal; Respondent: Gyarshi Lal; Respondent: Hardeva; Respondent: Kishan Lal; Respondent: Nahnuram; Respondent: Chokha Ram
Jurisdiction
India
Judgment Date
08 December 2005
Procedural Posture
Civil Appeal / Disposal After Appeal From Division Bench Judgment
Outcome
Appeal disposed of with directions.
Legal Topics
Offer and Acceptance, Voluntary Retirement Scheme (vrs), Withdrawal of Offer
Contract Law Service Law Offer and Acceptance Voluntary Retirement Scheme (vrs) Withdrawal of Offer

Case Brief

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Parties

Hindustan Copper Ltd.

Appellant

Banshi Lal

Respondent

Gyarshi Lal

Respondent

Hardeva

Respondent

Kishan Lal

Respondent

Nahnuram

Respondent

Chokha Ram

Respondent

Procedural Posture

Civil Appeal / Disposal After Appeal From Division Bench Judgment

Legal Issues

  1. 1 Whether an employee's offer to take VRS can be withdrawn before acceptance under Contract Act, 1872
  2. 2 Effect of contractual terms prohibiting withdrawal of VRS offer

Ratio Decidendi

An offer made by employees under a voluntary retirement scheme (VRS), being contractual in nature, can be withdrawn before it is accepted in terms of the Indian Contract Act, 1872. Any contractual stipulation cannot override this principle. Employees who withdrew their offers before acceptance are entitled to reinstatement and continuation in service until superannuation, subject to adjustment of VRS amounts received.

Court Disposition

Appeal disposed of with directions.

Orders

  • Respondents to be treated as having continued in service.
  • Reinstatement with back wages.