Holding

A voluntary retirement offer revoked by the employee before the employer’s acceptance cannot be enforced, and the High Court’s quashing of the acceptance order is affirmed.

Summary

Ramesh Kumar, an employee of the Food Corporation of India (FCI), applied for voluntary retirement under the corporation's 2002 scheme on 13 September 2004. He withdrew his application on 27 September 2004, but FCI accepted the retirement on 9 November 2004. Kumar challenged the acceptance before the Punjab and Haryana High Court, which quashed the order, holding that the revocation made before acceptance was effective. FCI appealed to the Supreme Court. The Court examined Clause VIII(d) of the scheme, which states that once an employee submits an application it is final and not open to withdrawal, but also considered precedents that allow withdrawal before acceptance when no specific withdrawal period is provided. Relying on State Bank of Patiala v. Ramesh Chandra Kanoji, the Court held that the employee’s revocation before acceptance barred the corporation from acting on the retirement request. Consequently, the Supreme Court affirmed the High Court’s decision and dismissed the appeals.

Issues considered

Whether an employee can withdraw a voluntary retirement application before the employer accepts it under Clause VIII(d) of the Food Corporation of India Voluntary Retirement Scheme.

Subjects

voluntary retirementrevocationacceptanceservice lawemployment schemewithdrawal before acceptanceFood Corporation of India

Judgment

).......
A FOOD CORPORATION OF INDIA AND ORS.
v.
RAMESH KUMAR '
AUGUST 8, 2007

B [A.K.MATHURANDMARKANDEYKATJU,JJ.]

Service Law: ~

Food Corporation of India-Voluntary Retirement Scheme, 2002-
c Clause VJII(d)-Employee applying for voluntary retirement on 13.9.2004,
but revoking the offer and withdrawing the same on 27.9.2004-Department ~
accepting offer of voluntary retirement by order dated 9. I 1.2004-High Court
quashing the order of Department-Held: the view taken by High Court is
correct-The revocation was made by the incumbent on 27.9.2004 and his
D offer of retirement cannot be acted upon as he has revoked it before the
Corporation could act upon it.
~
y
State Bank of Patia/a v. Ramesh Chandra Kanoji & Ors., (2004) 2 SCC
651, relied on.

E Bank of India & Ors. v. O.P. Swarnakar & Anr., (2003) 2 SCC 721,
distinguished.

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1611 of2006.

From the Judgment dated 6.9.2005 of the High Court of Punjab and
F Haryana at Chandigarh in W.P. No. 6590 of 2005. ...
~
WITH

C.A. Nos. 1612/2006 and 3458/2006.

Indra Sawhney for the Appellants.
G
M.C. Dhingra, M.A. Chinnasamy, Varinder Kumar Sharma for the
Respondent.
y

940
H

I
FOOD CORPN. OF INDIA v. RAMESH KUMAR 941

---\
The Order of the Court was delivered by A
-I
ORDER

Heard learned counsel for the parties in all these appeals. All the three
cases involve similar question of law therefore, we dispose them of by the
common order. The facts given in the case of C.A.No.1611 /2006 are taken into B '

consideration.

The respondent an employee of the Food Corporation of India applied
-'f on 13.9.2006 for voluntary retirement in pursuance of the scheme of Voluntary
Retirement floated by them on 29.6.2002. He revoked his offer and has
withdrawn the same on 27.9.2004 but despite withdrawal, his offer for voluntary c
retirement was accepted on 9.11.2004. This order ofretirement dated 9.11.2004
-I was challenged by the respondent by filing a writ petition before the Division
Bench of the Punjab and Haryana High Court. The Division Bench relying
upon the earlier judgment given under Gurcharan Singh v. FCJ allowed the
respondent's request and quashed the order dated 9.11.2004. D
Hence the present appeal by the Food Corporation of India.
~,
y
We have heard learned counsel for the parties and perused the record.
The short question before us is when the applicant has made the application
for withdrawal before it could be accepted, can the Food Corporation of India
E
still enforce the offer of voluntary retirement upon the incumbent. The learned
counsel for the appellant has submitted that as per Clause VIII(d) of the terms
of the scheme which clearly stipulates that the incumbent once makes a
request for voluntary retirement, he will be prevented from withdrawing the
same that means that once he has given offer for voluntary retirement and
when the withdrawal is totally prevented he has no right to withdraw his offer . F
• ). For better appreciation of the Clause VIIJ(d), It reads as under:

"Once an employee submits his application for voluntary retirement
under this scheme to the competent authority, it shall be treated as
final and it is not open to the employee to withdraw the same. The
competent authority within notice period (3 months) shall take a G
decision to accept or reject the request and shall communicate the
same to the official concerned."
~·
Learned counsel submitted that in view of this once the respondent has
given an offer for voluntary retirement on 13.9.2004, he cannot revoke the
H
/

942 SUPREME COURT REPORTS [2007) 8 S.C.R.

A same on 27.9.2004 and in that support learned counsel invited our attention ).._ '
\..
to the decision of this Court in [2003] 2 SCC 721 Bank of India & Ors. v. OP.
Swarnakar & Anr. As against this learned counsel for respondent invited our
· 1
attention to the decision in State Bank of Patiala v. Ramesh Chandra Kanoji
& Ors., reported in [2004] 2 SCC 651. Both these decisions are of three Judges
Bench and in the earifor decision given in the case of O.P. Swarnakar (supra)
B Hon'ble Justice Sinha was a party and he was also a party in the subsequent
decision in the case of State Bank of Patiala v. Ramesh Chandra Kanoji
(Supra). We have gone through both the decisions cited by the learned
counsel for the parties. In the case of OP. Swarnakar (supra), two schemes "(-
were taken into consideration; namely, one of the State Bank of India Scheme
c (for short SBIVRS) and the other of Nationalised Banks. There was a stipulation
in SBIVRS that the person who offers for voluntary retirement can· only
revoke the same within 15 days, whereas in other Banking Scheme the provision J.
)
was different, and is identical to the one in the case before us. h1 O.P.
Swarnakar (supra) a distinction was made between the two schemes. So far
J:_
as the scheme of State Bank of India i.e SBIVRS is concerned there the
D condition of 15 days was mentioned i.e. that incumbent can revoke the offer
within 15 days. If the person fails to do so the offer is complete. But so far >-
'
as other cases of other banks it is stipulated only. that once the incumbent y
gives an offer of voluntary retirement he will not be pem1itted to revoke it.
Therefore, there was a distinction between the Schemes which has been ~
E properly explained by the subsequent decision in para 6 in State Bank of
Patiala v. Ramesh Chander Kanoji (Supra) as follows:-

"It is evident from above that in the case of SBIVRS, where there
is a specific provision for withdrawal, the employee must exercise his
option within the time specified; and in case of Nationalised Banks
F where there was no provision to withdraw (and in fact the scheme
forbade withdrawal), the withdrawal must be effected prior to
acceptance by the Bank. Therefore, in terms of the ratio laid down by
this Court, the employee is ensured under SBIVRS the right of
withdrawal within the specified period."

G Therefore, now the position stands settled that in case of a V.R.S.
Scheme of State Bank of India where 15 days' time limit for revocation has
been laid down in case the incumbent withdraws his offer within 15 days then
the offer given by the incumbent cannot be treated against him and it will be
deemed that he has revoked his offer. In case of other banks there is a
H condit.ion that once the offer has been given it shall not be permitted to be
'·

FOOD CORPN. OF INDIA v. RAMESH KUMAR 943
revoked but in view of the above decision the incumbent can still withdraw A
the offer if it has not been accepted by the Management. Now adverting to
the present scheme of the Food Corporation, para 8 clearly stipulates that the
incumbent has no right to revoke the same and the Management will decide
the same within three months. That means the Management still has three
months' time to consider and decide whether to act upon the offer given by B
the incumbent or not. But if the incumbent revokes his offer before the
Corporation accepts it then in that case, the revocation of the offer is complete
and the Corporation cannot act upon that offer. In the present Clause there
is one more additional factor which is that the Management has to take a
decision within three months. Therefore. once the revocation is made by the
incumbent before three months then in that case the Corporation cannot act C
upon the offer of voluntary retirement unless it is accepted prior to its
withdrawal. In the present case, it is clear that the incumbent had given an
offer for voluntary retirement on the 13.9.2004 and he revoked his offer on
27.9.2007 but the same was accepted on 9.11.2004 i.e. after the revocation of
his offer. In view of the law laid down by this Court in the case of State Bank
of Patiala (Supra) the incumbent has already revoked his offer before it could D
be accepted. Therefore, in this view of the matter, the approach of the High
•.
Court appears to be correct and does not require any interference. The
revocation was made by the incumbent on 27.9.2004 and his offer ofretirement
cannot be acted upon as he has revoked it before the Corporation could act
upon it. Hence, we are of the opinion, that the view taken by the High Court E
is correct. Consequently, all the three appeals are dismissed but without any
order as to costs.

RP. Appeals dismissed.