Supreme Court of India

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

Citation: 2005 INSC 492
Decided: 7 October 2005
Disposal: Appeal(s) allowed
Bench: B N SRIKRISHNA

Holding

A resignation under Rule 16 becomes effective only after the statutory notice period unless notice‑pay is made, and the employee may withdraw it before that date, rendering the employer’s acceptance and relief unlawful.

Summary

Srikanta S.M., a senior manager of Bharath Earth Movers Ltd., submitted a resignation on 4 January 1993 which was accepted the same day, but the company granted him casual leave until 13 January and relieved him on 15 January. He withdrew his resignation by letter on 8 January, seeking to remain in service. The company nonetheless issued a service certificate and a cheque on 15 January and denied further benefits. The Karnataka High Court held the resignation effective immediately and dismissed the appellant's petition. The Supreme Court reversed, holding that under Rule 16 of the company’s Service Rules a permanent employee’s resignation becomes effective only after a one‑month notice period unless notice‑pay is made, and that the employee may withdraw the resignation before that date. Consequently, the employer’s acceptance and relief were unlawful, the High Court orders were set aside, and the appellant was directed to be treated as in continuous service until his superannuation on 31 December 1994 with all consequential benefits, including salary arrears.

Issues considered

The effect of acceptance of a resignation on the date of its effectiveness under the employer's service rules.
Whether an employee may withdraw a resignation before the notice period expires.
Whether the employer is obligated to continue the employee in service and grant benefits upon withdrawal of resignation.
The interpretation of Rule 16 of Bharath Earth Movers Ltd. Service Rules regarding notice period and payment in lieu.

Legislation cited

Central Civil Service (Pension) Rules, 1972s. 48-A(4)

Subjects

resignationwithdrawal of resignationnotice periodservice rulesemployee benefitsgratuityprovident fundcontinuous serviceSupreme Court

Judgment

A SRIKANTHA S.M.
V.

MIS. BHARATH EARTH MOVERS LTD.

OCTOBER 7, 2005

B [B.N. SRIKRISHNA AND C.K. THAKKER, JJ.]

Service Law:

Bharath Earth Movers Limited Service Rules:
c
Rule 16--Resignation--Wilhdrawal of--Permissibility--Employee
submilled a lei/er of resignation on 4.1.1993 and requested to be relieved
from his duties 'as per company rules '--Resignation accepted on the same
day-Employee was informed that he would be relieved 'with immediate
D effect '--However, the employee was informed that his casual leave had been
sanctioned from 5.1.1993 to 13.1.1993 and, 14././993 being a holiday, the
employee would be relieved by the close of working hours on 15.1.1993--
During this period the employee changed his mind and withdrew his resignation
by letter dated 8.1.1993--The employee stated that if a suitable reply was not
given by 14.1.1993, the letter of resignation dated 4. 1.1993 should be treated
E as withdrawn/cancelled-The employee was informed by a letter dated
15. 1. 1993 that he would be relieved after officer hours on that day-Service
certificate in original along with a cheque was given to him-High Court
upheld the company's action and held that it was not open to the employee
to withdraw the resignation-Correctness of-Held: Rule 16 makes it clear
F that. a permanent employee may resign from service by giving one month's
notice in writing or by paying one month's basic pay in lieu of notice to the
company-As the employee has not paid one month's basic pay in lieu of
notice the resignation became effective after one month from the date of his
resignation letter i.e. from 3.2.1993--Hence. the employee is entitled to
withdraw his resignation before 3.2.1993--Therefore, by not giving effect to
G the lett~r dated 8.1.1993 whereby the employee withdrew his resignation the
company acted contraiy to law-Hence, action of company quashed and set
aside-Employee entitled to all consequential benefits.

Words and phrases Resignation-meaning.

H 156
SRIKANTHA S.M. v. BHARA TH EARTH MOVERS LTD. 157
The appellant was employed as a Senior Manager in the respondent A
company and was transferred to the Corporate Office. The appellant was
not assigned any work at the Corporate Office and, therefore, the
appellant tendered a letter of resignation on 4.1.1993 and requested the
respondent-company to relieve him from his duties 'as per company rules'.
The resignation was accepted on the same day. By another letter, the
appellant was informed that his casual leave had been sanctioned from B
5.1.1993 to 13.1.1993 and, 14.1.1993 being a holiday, the appellant would
be relieved by the close of working hours on 15.1.1993. On 15.1.1993, the
appellant was informed that he would be relieved after office hours on
that day. The service certificate in original along with a cheque was given
to him. c
The High Court held that since the appellant had submitted his
resignation on 4.1.1993 and it was accepted on the same day by the
company, by not continuing him in service, no illegality had been
committed by the company. Hence, the appeal.
D
Allowing the appeal, the Court

HELD: 1. Rule 16 of the Bharath Earth Movers Limited Service
Rules makes it clear that a permanent employee may resign from service
by giving one month's notice in writing or by paying one month's basic
pay in lieu of notice to the company. Admittedly, the appellant had not E
paid one month's basic pay in lieu of notice to the company. It is, therefore,
clear that since the letter of resignation was as per company rules, it was
to become effective after one month. (161-F, GI

2.1. Though the respondent-company had accepted the resignation
of the appellant on 4.1.1993 and the appellant was ordered to be relieved F
on that day, by a subsequent letter, he was granted casual leave from
4.1.1993 to 13.1.1993. Moreover, he was informed that he would be
relieved after office hours on 15.1.1993. The vinculum juris, therefore,
continued and the relationship of employer and employee did not come
to an end on 4.1.1993. The relieving order and payment of salary also make G
it abundantly clear that he has continued in service of the company up to
15.1.1993. [166-G, H]

2.2. The appellant had asserted that he had not received terminal
benefits such as gratuity, provident fund, etc. It is thus proved that up to
15.1.1993, the appellant remained in service. lfit is so, as per settled law, H
158 SUPREME COURT REPORTS (2005] SUPP. 4 S.C.R.

A the appellant could have withdrawn his resignation before that date. It is
an admitted fact that a letter of withdrawal of resignation was submitted
by the appellant on 8.1.1993. It was, therefore, incumbent on the company
to give effect to the said letter. By not doing so, the company has acted
contrary to the law and against the decisions of this Court and hence, the
B action of the company deserves to be quashed and set aside. The High
Court was in error in not granting relief to the appellant. Accordingly,
the action of the company as upheld by the High Court is hereby set aside.
(167-B, c, DI

Union of India v. Gopal Chandra Misra, (19781 2 SCC 301, Bairam
C Gupta v. Union of India, (19871 Supp. SCC 228, Punjab National Bank v.
P.K. Mittal, (19891 Supp. 2 SCC 175, Power Finance Corporation Ltd v.
Pramod Kumar Bhatia, (I 9971 4 SCC 280, Shambhu Murari Sinha Iv. Project
and Development India, (20001 5 SCC 621 and Shambhu Murari Sinha 11 v.
Project and Development India, (20021 3 SCC 437, relied on.

D 3. As the appellant withdrew the resignation and yet he was not
allowed to work, he is entitled to all ronsequential benefits. (167-E!

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1404 of2003.

From the Judgment and Order dated 28.1.2002 of the Karnataka High
E Court in W.A. No. 5500 of 1998 S-Res.
S.N. Bhat, N.P. Panwar and D.P. Chaturvedi for the Appellant.

K. K. Mani and K. B. Sandeep for the Respondent.

The Judgment of the Court was delivered by
F
C.K. THAKKER, J. This appeal is filed by the appellant against the
judgment and order passed by the Division Bench of the High Court of
Karnataka on January 28, 2002 in Writ Appeal No. 5500 of 1998 confirming
the order passed by learned single Judge on September 07, 1998 in Writ
Petition No. 26090 of 1993.
G
To appreciate the points raised in the appeal, few relevant facts may be
stated.

The appellant was selected by the Chairman and Managing Director of
Bharath Earth Movers Limited ('Company' for short) respondent herein, and
H was appointed as Senior Manager in the Department of Security and Vigilance
SRIKANTHA S.M. v. BHARA TH EARTH MOVERS LTD. [THAKKER. J.] 159
for KGF by an order dated December 11, 1989. He reported for duty on A
December 29, 1989. By an order dated December 03, 1992, the appellant was
transferred to Corporate Office at Bangalore and was relieved on December
04, 1992. The appellant reported at Corporate Office, Bangalore on December
07, 1992. It was his case that he was not assigned any work ar Bangalore.
The appellant, in the circumstances, got upset and tendered a letter of B
resignation on January 04, 1993. In the said letter, he stated that he was
thankful to the Chief Managing Director for giving him an opportunity to
serve the esteemed organization but he wanted to leave the Company. He
therefore, requested to treat the letter as his resignation and relieve him from
the duties 'as per Company rules'. On the basis of the said letter, the matter
was processed and the resignation was accepted by Deputy General Manager C
(Personnel) on the same day. The appellant was infom1ed that his resignation
had been accepted and he would be relieved 'with immediate effect'. It was
also stated that the appellant would be entitled for pay towards notice period
as per Company rules. By another letter of even date, however, the appellant
was informed that his casual leave had been sanctioned from January 05,
1993 to January 13, 1993. January 14, 1993 being a holiday, the appellant D
would be relieved by the close of working hours on January 15, 1993. It was
also stated that the appellant would be entitled for pay towards the balance
of notice period as per Company rules.

It is the case of appellant that from the second letter dated January 4, E
1993, it was clear that the resignation submitted by him was to be effective
from January 15, 1993 after office hours. During that period, the appellant
changed his mind and withdrew his resignation by addressing a letter on
January 08, I 993. In the said letter, he made several complaints and raised
grievances and finally stated that if suitable reply would not be given by
January 14, 1993, his letter of resignation dated January 04, 1993 should be F
treated as withdrawn/cancelled. On January 15, 1993 the appellant was
informed that he would be relieved after office hours on that day. The service
certificate in original alongwith a cheque of Rs. 13,511 was given to him.

Since the appellant had withdrawn his resignation on January 08, 1993,
the Company could not have accepted it and ought to have continued him in G
service. But the appellant was not allowed to work after .January 15, 1993.
He, therefore, approached the High Court of Kamataka by filing a writ petition.
The learned single Judge observed in the order that since the appellant had
submitted his resignation on January 04, 1993 and it was accepted on the
same day by the Company, by not continuing him in service, no illegality had I-I
160 SUPREME COURT REPORTS [2005] SUPP. 4 S.C.R.

- A been committed by the Company. Accordingly, the petition was dismissed.
The Division Bench was of the: same opinion and dismissed the appeal. Being
aggrieved by the orders passed by the High Court, the appellant has approached
this Court. Notice was issued on August 16, 2002 and after hearing the
parties, leave was granted on February 17, 2003.

B We have heard learned counsel for the parties.

The learned counsel for the appellant vehemently contended that the
appellant submitted resignatiorn on January 04, 1993. No doubt, the resignation
was accepted by the Company on the same day and he was to be relieved
C from service. Later on, however, casual leave was granted for the period
from January 04, 1993 to January 13, 1993 and the appellant was informed
that he would be relieved after office hours on January 15, 1993. The appellant,
in the circumstances, could have withdrawn the resignation before that date.
As the appellant withdrew his resignation on January 08, 1993, it was
obligatory on the Company to accept the said letter and to treat him in
D service. By not doing so, the Company had acted illegally and unlawfully
and the said action ought to have been set aside by the High Court. According
to the counsel, till office hours of January 15, 1993, the relationship of
employer and employee did not come to an end and effect ought to have been
given by the Company to the letter dated January 08, 1993. It was also
submitted by the counsel that the appellant was to attain age of superannuation
E on December 31, 1994. He was, therefore, entitled to all the benefits as if he
would have continued in service upto the date of retirement. It was, therefore,
prayed that the order passed by the learned single Judge and confirmed by
the Division Bench deserve to be set aside by allowing the appeal and by
granting consequential benefits.
F
The learned counsel for the respondent, on the other hand, supported
the order passed by the learned single Judge and confirmed by the Division
Bench. It was urged that the appellant resigned from service on January 04,
1993 and on the same day, the resignation was accepted and he was ordered
to be relieved. It was because of the prayer made by the appellant that casual
G leave was granted from January 04, 1993 to January 13, 1993 and he was
informed that he would be relieved after office hours on the next working
day i.e. January 15, 1993. From that, however, it cannot be said that resignation
of the-appellant was not accepted or the appellant continued in service upto
January 15, 1993. It was also submitted that on January 15, 1993, the appellant
H was given his service certificate in original alongwith an the benefits to
SRIKANTHA S.M. v. BHARA TH EARTH MOVERS LTD. [THAKKER, .I. Jl 61

which he was entitled and he. accepted them without any protest. It, therefore, A
did not lie in the mouth of the appellant that the action was illegal. He is
estopped from making grievance against the Company. It was, therefore,
prayed that the appeal deserves to be dismissed.

Having given anxious consideration to the facts and circumstances of
the case and in the light of Service Rules and various decisions of this Court B
to which our attention has been invited, we are of the view that the High
Court was wrong in holding that it was not open to the appellant to withdraw
the resignation.

As is clear from the facts stated hereinabove that the appellant in the
letter of resignation, had expressly stated; ''This may please be considered as C
my resignation and relieved from the duties from the date, as per Company
rules". (emphasis supplied) It is thus clear that his resignation was to be
considered and an appropriate decision was to be taken as per 'Company
rules'. Attention of the Court was invited to the rules framed by the Company
known as 'Bharath Earth Movers Limited Service Rules'. Rule 16 deals with Di
resignation Clause (I) of the Rule I6 is relevant and may be reproduced:

"A permanent employee may resign his employment by giving one
month's notice in writing or by paying one month's basic pay in lieu
of notice to the Company. The resignation will become valid and
effective only after the Company communicates in writing to the E
employee accepting his resignation. If an employee gives notice of
his inte~tion to resign, the Management may accept the resignation
and release him at once or at any time before the date of expiry of
the notice period, in which case he will be paid only for the period
he actually works."
F
Plain reading of the above rule makes it clear that a permanent employee
may resign from service by giving one month's notice in writing or by
paying one month's basic pay in lieu of notice to the Company. Admittedly,
the appellant had not paid one month's basic pay in lieu of notice to the
Company. It is, therefore, clear that since the letter of resignation was as per G
Company rules, it was to become effective after one month. The learned
single Judge was also of the same opinion. He observed in the order that the
Company rules required an employee to resign by giving one month's notice
in writing, or ifhe wanted to be relieved immediately, be paying one month's
pay in lieu of notice period. Since the appellant had not paid one month's pay
in lieu of notice alongwith his letter of resignation, it could safely be presumed H
162 SUPREME COURT REPORTS [2005] SUPP. 4 S.C.R.

A that he had tendered his resignation letter by giving a notice of one month
in writing to the employer. The learned single Judge then observed that the
'intention' of the appellant to resign from service was accepted by the employer
on the same day, i.e. January 04, l 993 and he was informed that he would
be relieved from service at once. According to the learned single Judge,
B though by another letter of the same date, the appellant was informed that he
had been granted casual leave from January 05, 1993 to January 13, 1993
and January 14, 1993 being holiday, he would be relieved from January 15,
1993, it was within the powers of the Company under the rules and would
not change the legal position that once the resignation was accepted, it was
effective. Hence, it was not open to the appellant to withdraw the resignation
C on January 08, 1993. Referring to several judgments, the learned single Judge
held that since the resignation was accepted, the Company was fully justified
in ignoring and not accepting the request of the appellant made in his letter
dated January 08, l 993. In the opinion of the learned single Judge, the act
of relieving the appellant was a subsequent act which had nothing to do with
the act of accepting the resignation and the appellant was not entitled to any
D benefit.

The Division Bench, by a cryptic order, dismissed the appeal observing
the when the resignation was submitted on January 04, 1993 by the appellant
and it was accepted on the same day, the fact that he was relieved on January
E 15, 1993 did not make any difference. To us, both the courts were wrong in
taking the view that the appellant .was no more in service after January 04,
1993.

Now, Jet us consider the controversy on merits. The term 'resignation'
has not been defined in the Service Rules. According to dictionary meaning,
p however, 'resignation' means spontaneous relinquishment of one's own right.
It is conveyed by Latin maxim Resignatio est Juris propii spontanea refutatio.
(Resignation is a spontaneous relinquishment of one's own right). In relation
to an office, resignation connotes the act of giving up or relinquishing the
office. 'To relinquish an office' means 'to cease to hold the office' or 'to
leave the job' or 'to leave the position'. 'To cease to hold office' or 'to loose
G hold of the office' implies to 'detach', 'unfasten', 'undo' or 'untie' 'the
binding knot or link' which holds one to the office and the obligations and
privileges that go with it.

In Union of India v. Gopal Chanrd Misra, [ 1978] 2 SCC 301: [ 1978]
H 3 SCR 12, this Court held that a complete and effective act of resigning an
SRIKANTHA S.M. v. Bl-JARA TH EARTH MOVERS LTD. [THAKKER, J.) 163

office is one which severs the link of the resignor with his office and terminates A
its tenure.

In Bairam Gupta v. Union of India, [1978] Supp SCC 228, this Court
reiterated the principled in Gopal Chandra Misra and ruled that though that
case related to resignation by a Judge of the High Court, the general rule
equally applied to government servants. B
The learned counsel for the parties drew our attention to some of the
decisions of this Court on the point. In Punjab National Bank v. P.K. Mitta/,
[1989] Supp 2 SCC 175, an employee resigned from service of the Bank by
a communication dated January 21, 1986. It was to be effective from June C
30, 1986. The Deputy General Manager who was the competent authority
under the Service Regulations, accepted the resignation as per the letter of
resignation i.e. with effect from June 30, I 986. The employee, however,
received a letter from the Bank on February 07, 1986 informing him that his
resignation letter had been accepted by the competent authority with immediate
effect and consequently he was being relieved from the service of the Bank D
with effect from that day, i.e. from February 07, 1986. The employee, therefore,
filed a petition challenging the validity of the purported acceptance of his
resignation with effect from February 07, 1986 and for a direction to the
Bank to treat him in service upto June 30, 1986 by granting all consequential
benefits. The matter, however, did not end there. On April 15, 1986, the
employee addressed :: letter to the Bank purporting to withdraw his resignation E
letter dated January 21, 1986. The question which came up for consideration
was as to whether the subsequent development could be taken into account
and whether the employee continued in service in view of the withdrawal of
resignation dated April 15, 1986. Accepting the contention of the employee
that he continued in service, the Court held that his resignation could take p
effect from June 30, 1986 or on expiry of three months period provided in
the Service Regulations and before that period he could withdraw the
resignation. Since he had withdrawn the resignation before June 30, 1986, he
continued to remain in service with the Bank.

It was urged on behalf of the Bank that Regulation 20(2) provided for G
notice to protect the interest only of the employer (Bank) and to enable it to
make other arrangements in the place of the resigning employee. The proviso
to clause (2) enabled the Bank to reduce the notice-period to less than three
months and as such it was not obligatory for the Bank to wait till the notice
period would expire.
H
164 SUPREME COURT REPORTS [2005] SUPP. 4 S.C.R.

A This Court, however, did not agree with the interpretation. Dealing
with the object underlying such provision as giving opportunity to both, the
employer as well as the employee, the Court .stated;

"We are of the opinion that clause (2) of the regulation and its proviso
are intended not only for the protection for the bank but also for the
B benefit of the employee. It is common knowledge that a person
proposing to resign often wavers in his decision and even in a case
where has taken a firm decision to resign, he may not he ready to go
out immediately. In most cases he would need a period of adjustment
and hence like to defer the actual date of relief form duties for a few
months for various personal reasons. Equally an employer may like
c to have time to make some alternative arrangement before relieving
·the resigning employee. Clause (2) is carefully worded keeping both
these requirements in mind. It gives the employee a period of
adjustment and rethinking. It also enables the bank to have some time
to arrange its affairs, with the liberty, in an appropriate case, to accept
D the resignation of an employee even without the requisite notice if he
so desires it. The proviso in our opinion should not be interpreted as
enabling a bank to thrust a resignation on an employee with effect
from a date different from the one on which he can make his
resignation effective under the terms of the regulation. We, therefore,
agree with the High Court that in the present case the resignation of
E the employee could have become effective only on or about April 21,
I986 or on June 30, I 986 and that the bank could not have ''accepted''
that resignation on any earlier date. The letter dated February 7, I986
was, therefore, without jurisdiction."

(emphasis supplied)
F
In Bairam Gupta, referred to above, the employee withdrew his notice
of voluntary retirement on account of persistent and personal requests from
the staff members. But the prayer for withdrawal was not allowed by the
employer on the ground that it had already been accepted by the Government.
G Moreover, Rule 48-A (4) of the Central Civil Service (Pension) Rules, 1972
precluded the Government servant from withdrawing his notice except with
specific approval of the appointing authority.

Deprecating the stand taken by the Government, this Court held that it
was not proper for the Government not to accede to the request of the
H employee. "In the modern age we should not put embargo upon people's
SRIKANTHA S.M. v. BHARA TH EARTH MOVERS LTD. [THAKKER, J.] 165

choice or freedom", - stated the Court. A
The Court added;

"In the modem and uncertain age it is very difficult to arrange one's
future with any amount of certainty; a certain amount of flexibility is
required, and if such flexibility does not jeopardize government or B
administration, administration should be graceful enough to respond
and acknowledge the flexibility of human mind and attitude and allow
the appellant to withdraw his letter of retirement in the facts and
circumstances of this case. Much complications which had arisen
could have been thus avoided by such graceful attitude. The court
cannot but condemn circuitous ways "to ease out" uncomfortable c
employees. As a model employer the government must conduct itself
.., with high probity and candour with its employees."

. In Power Finance Corporation ltd. v. Pramod Kumar Bhatia, [1997]
4 sec 2so, a workman applied for voluntary retirement pursuant to the D
scheme framed by the Corporation to relieve surplus staff. The Corporation
vi de an order dated December 20, 1994 accepted voluntary retirement of the
workman with effect from December 31, l 994 subject to certain conditions.
Subsequently, however, the Corporation withdrew the scheme. It was held '
that the order dated December 20, 1994 was conditional and unless the
employee was relieved from the duty on the fulfillment of the those conditions, E ·
the order of voluntary retirement did not become effective. The employee,
therefore, could not assert that the voluntary retirement was effective and
claim benefits on that basis.

The Court said;
F
"It is now settled legal position that unless the employee is relieved
of the duty after acceptance of the offer of voluntary retirement or
resignation, Jura/ relationship of the employee and the employer does
not come to an end Since the order accepting the voluntary retirement
was a conditional one, the conditions ought to have been complied
with. Before the conditions could be complied with, the appellant G
withdrew the scheme. Consequently, the order accepting voluntary
retirement did not become effective. Thereby no vested right his been
created in favour of the respondent. The High Court, therefore, was
not right in holding that the respondent has acquired a vested right
and, therefore, the appellant has no right to withdraw the scheme H
166 SUPREME COURT REPORTS [2005] SUPP. 4 S.C.R.

A subsequently." (emphasis supplied).

In J.N. Srivastava v. Union of India and Anr, [ 1998] 9 SCC 559, a
notice of voluntary retirement was given by an employee on October 03,
1989 which was to come into effect from January 31, 1990. The notice was
accepted by the Government on November 02, 1989 but the employee withdrew
B the notice vide his letter dated December I ! , 1989. It was held that withdrawal
was permissible though it was accepted by the Government, since it was to
be made effective from January 31, 1990 and before that date it was withdrawn.

In Shambhu Murari Sinha v. Project and Development India and Anr.
(Shambhu Murari Sinha I), [2000] 5 SCC 621, an application for voluntary
c retirement of an employee dated October 18, 1995 was accepted by the
employer vide letter dated July 30, 1997 with further intimation that "release
memo alongwith detailed particulars will follow". The workman was actually
relieved on. September 26, 1997. In the meanwhile, however, by a letter,
dated august 7, 1997, he withdrew the application dated October 18, 1995,
D by which he sought voluntary retirement. It was held that the effective date
of voluntary retirement was September 26, 1997 and before that date it was
permissible for the workman to withdraw his retirement. The appellant was,
therefore, held entitled to remain in service.

In Shambhu Murari Sinha v. Project and Development India Ltd and
E Anr. (Shambhu Murari Sinha II), [2002] 3 SCC 437, the view taken in
Shambhu Murari Sinha I was reiterated. It was held that when voluntary
retirement was withdrawn by an employee, he continued to remain in service.
The relationship of employer and employee did not come to an end and the
employee had locus penitentiae to withdraw his proposal for voluntary
F retirement. He was, therefore, entitled to rejoin duty and the Corporation was
bound to allow him to work.

On the basis of the above decisions, in our opinion, the learned counsel
for the appellant is right in contending that though the respondent-Company
had accepted the resignation of the appellant on January 04, 1993 and was
G ordered to be relieved on that day, by a subsequent letter, he was granted
casual leave from January 04, 1993 to January 13, 1993. Moreover, he was
informed that he would be relieved after office hours on January 15, 1993.
The vinculum Juris, therefore, in our considered opinion, continued and the
relationship of employer and employee did not come to an end on January
04, 1993. The relieving order and payment of salary also make it abundantly
H clear that he was continued in service of the Company upto January 15, 1993.
-- SRIKANTHA S.M. v. BHARATH EARTH MOVERS LTD. [THAKKER.J.] 167

In affidavit in reply filed by the Company, it was stated that resignation A
of the appellant was accepted immediately and he was to be relieved on
January 04, 1993. It was because of the request of the appellant that he was
continued upto January 15, 1993. In the affidavit in rejoinder, the appellant
had stated that he reported for duty on January 15, 1993 and also worked on
that day. At about 12.00 noon, a letter was issued to him stating therein that B
he would be relieved at the close of the day. A cheque of Rs. 13,511 was paid
to him at 17.30 hrs. The appellant had asserted that he had not received
tenninal benefits such as gratuity, provident fund, etc. It is thus proved that
upto January 15, 1993, the appellant remained in service. If it is so, our
opinion, as per settled law, the appellant could have withdrawn his resignation
before that date. It is an admitted fact that a letter of withdrawal ofresignation C
was submitted by the appellant on January 08, 1993. lt was, therefore,
incumbent on the Company to give effect to the said letter. By not doing so,
the Company has acted contrary to the law and against the decisions of this
Court and hence, the action of the Company deserves to be quashed and set
aside. The High Court, in our opinion, was in error in not granting relief to
the appellant. Accordingly, the action of the Company as upheld by the High D
Court is hereby set aside.

The next question is, as to what benefits the appellant is entitled to. As
he withdrew the resignation and yet he was not allowed to work, he is
entitled to all consequential benefits. The learned counsel for the respondent- E
Company no doubt contended that after January 15, 1993, the appellant had
not actually worked and therefore, even if this Court holds that the action of
the respondent-Company was not in consonance with law, at the most, the
appellant might be entitled to other benefits except the salary which should
have been paid to him. Accon;ling to the counsel, the principle of "no work,
no pay" would apply and when the appellant has admittedly not worked, he F
cannot claim salary for the said period.

We must frankly admit that we unable to uphold the contention of the
respondent-Company. A similar situation had arisen in J.N. Srivastava and a
similar argument was advanced by the employer. The Court, however,
negatived the argument observing that when the workman was willing to G
work but the employer did not allow him to work, it would not be open to
the employer to deny monetary benefits to the workman who was not pennitted
to discharge his duties. Accordingly, the benefits were granted to him. In
Shambhu Murari Sinha fl also, this Court held that since the relationship of
employer and employee continued till the employee attained the age of H
168 SUPREME COURT REPORTS [2005) SUPP. 4 S.C.R.

A superannuation he would be entitled to "full salary and allowances" of the
entire period he was kept out of service. In Bairam Gupta, in spite of specific
provision precluding the Government servant from withdrawing notice of
retirement, this Court granted all consequential benefits to him. The appellant
is, therefore, entitled to salary and other benefits.

B For the foregoing reasons, in our opinion, the appeal deserves to be
allowed and is accordingly allowed. The action of the respondent-Company
in accepting the resignation of the appellant from January 04, 1993 and not
allowing him to work is declared illegal and unlawful. It is, therefore, hereby
set aside. The orders passed by the learned single Judge and the Division
C Bench upholding the action of the Company are also set aside. The respondent-
Company is directed to treat the appellant in continuous service upto the age
of superannuation i.e. December 31, 1994 and give him all benefits including
arrears of salary. The Company may adjust any amount paid to the appellant
on January 15, 1993 or thereafter. The appeal is accordingly allowed with ,
costs.
D
v.s.s. Appeal allowed.

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