SHAMBHU MURARI SINHA versus PROJECT AND DEVELOPMENT INDIA LTD. AND ANR.

SHAMBHU MURARI SINHA versus PROJECT AND DEVELOPMENT INDIA LTD. AND ANR.

An employee is entitled to withdraw his proposal for voluntary retirement under the Voluntary Retirement Scheme before actual release from service, even if acceptance has been communicated. The employment relationship continues until the effective date of release, not from the date of acceptance, and any request for withdrawal made prior to actual release must be accepted.

Parties
Appellant: Shambhu Murari Sinha; Respondent: Project and Development India Ltd. and Anr.
Jurisdiction
India
Judgment Date
13 March 2002
Procedural Posture
Civil Appeal / Supreme Court Final Decision After Review of High Court Division Bench and Single Judge Orders
Outcome
Appeal allowed; impugned judgment set aside
Legal Topics
Voluntary Retirement Scheme, Withdrawal of Option, Employer Employee Relationship, Effective Date of Retirement
Service Law Voluntary Retirement Scheme Withdrawal of Option Employer Employee Relationship Effective Date of Retirement

Case Brief

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Parties

Shambhu Murari Sinha

Appellant

Project and Development India Ltd. and Anr.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Final Decision After Review of High Court Division Bench and Single Judge Orders

Legal Issues

  1. 1 Whether an employee can withdraw from the Voluntary Retirement Scheme after acceptance but before actual release from service
  2. 2 What is the effective date for ending the employment relationship under a voluntary retirement scheme

Ratio Decidendi

An employee is entitled to withdraw his proposal for voluntary retirement under the Voluntary Retirement Scheme before actual release from service, even if acceptance has been communicated. The employment relationship continues until the effective date of release, not from the date of acceptance, and any request for withdrawal made prior to actual release must be accepted.

Court Disposition

Appeal allowed; impugned judgment set aside

Orders

  • The appellant is entitled to rejoin duty and be paid all salaries and benefits for the period out of service.
  • If retired by superannuation, appellant is to be paid full salary and allowances for entire period out of service and receive all retiral benefits as if in service.