Employee withdrawing resignation before acceptance - Granted 50% salary from the date of deemed acceptance to reinstatement.

Supreme Court Upholds Employee's Right to Withdraw Resignation Before Acceptance Konkan Railway's Review Petition Dismissed, Employee Entitled to 50% Back Wages Post Resignation Withdrawal

In a significant judgment, the Supreme Court of India has upheld the right of an employee to withdraw their resignation prior to acceptance by the employer, dismissing a review petition filed by Konkan Railway Corporation Ltd. The case revolves around an employee, S.D. Manohara, who had withdrawn his resignation before it was officially accepted by the company.

The Supreme Court's bench, comprising Justices Pamidighantam Sri Narasimha and Pankaj Mithal, reaffirmed its earlier decision from September 13, 2024, allowing the civil appeal of the respondent-employee. The court emphasized that the resignation becomes effective only upon acceptance by the employer and a withdrawal prior to such acceptance is valid. The employee in question had 23 years of unblemished service with Konkan Railway, which further influenced the court's decision to protect his employment rights.

The review petition submitted by Konkan Railway argued that errors in the original judgment necessitated a review. The corporation contended that the resignation was communicated to the employee and that the principle of 'no work, no pay' should have been strictly applied, contesting the award of 50% back wages. However, the Supreme Court found these arguments insufficient to alter its previous decision. 

The court pointed out that the communication of acceptance was not definitive until July 1, 2014, and that the employee's resignation withdrawal on May 26, 2014, was well within his rights. The judges noted the employee's long-standing service and concluded that justice and equity supported his stance.

In dismissing the review petition, the court maintained that the employee should receive 50% of his salary from the date of deemed acceptance of resignation until reinstatement, recognizing his commitment and the principle of fairness. This decision underscores the judiciary's role in balancing legal principles with equitable justice.

This ruling sets a precedent in employment law, reaffirming that resignation withdrawal prior to acceptance must be respected, and the interests of justice should guide decisions in employment disputes.

Bottom Line:

Resignation withdrawal - Employee withdrawing resignation before its acceptance - Employee with 23 years of unblemished service - Interests of justice served by granting 50% of salary from the date of deemed acceptance of resignation to reinstatement.

Statutory provision(s): Employment Law, Review Petition

Konkan Railway Corporation Ltd. v. S.D. Manohara, (SC) : Law Finder Doc Id # 2814158