SRIKANTHA S.M. versus M/S. BHARATH EARTH MOVERS LTD.

SRIKANTHA S.M. versus M/S. BHARATH EARTH MOVERS LTD.

Since the appellant did not pay basic pay in lieu of notice, his resignation was to become effective only after expiry of one month from the resignation date, i.e. 3.2.1993. He withdrew his resignation before this date, making it permissible and legally effective. The company's refusal to accept withdrawal and relieving him earlier was contrary to law and company rules, thus action of the company must be set aside.

Parties
Appellant: Srikanta S.M.; Respondent: Bharath Earth Movers Ltd.
Jurisdiction
India
Judgment Date
07 October 2005
Procedural Posture
Civil Appeal / Supreme Court Appeal From Karnataka High Court (division Bench and Single Judge)
Outcome
Appeal allowed
Legal Topics
Withdrawal of Resignation, Consequential Benefits on Wrongful Acceptance of Resignation
Service Law Withdrawal of Resignation Consequential Benefits on Wrongful Acceptance of Resignation

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Parties

Srikanta S.M.

Appellant

Bharath Earth Movers Ltd.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal From Karnataka High Court (division Bench and Single Judge)

Legal Issues

  1. 1 Whether a permanent employee can withdraw resignation before it becomes effective under company rules
  2. 2 Whether acceptance of resignation and relieving order before expiry of notice period is valid

Ratio Decidendi

Since the appellant did not pay basic pay in lieu of notice, his resignation was to become effective only after expiry of one month from the resignation date, i.e. 3.2.1993. He withdrew his resignation before this date, making it permissible and legally effective. The company's refusal to accept withdrawal and relieving him earlier was contrary to law and company rules, thus action of the company must be set aside.

Court Disposition

Appeal allowed

Orders

  • Action of respondent-company in accepting resignation and not allowing appellant to work is declared illegal and unlawful and set aside.
  • Orders passed by learned single Judge and Division Bench upholding company's action are set aside.