Resignation Not Final Until Employer Communicates The Acceptance To Employee:-SC 91-8877001993

In a recent judgement given in the case of S. D. Manohara v Konkan Railway Corporation Ltd. & Ors., the Hon’ble Supreme Court of India ordered the reinstatement of a Railways employee observing that he withdrew his resignation letter before it was accepted. 

The Court held that unless the acceptance of the resignation has been communicated to the employee, the resignation shall not be deemed to be accepted. 

Facts of the Case:- 

• The appellant, after a service of 23 years in the Konkan Rail Corporation (respondent) since the year 1990, tendered his resignation on 5.12.2013, which may be considered as effective after a month. 
• The resignation letter was later accepted on 7.04.2014, however no official communication was there regarding such acceptance, later on, dated 26.05.2014, the appellant withdrew his resignation through a letter. 
• The respondent, i.e the Konkan Rail Corporation dismissed the appellant from employment from 1.07.2014.
• However, as has been mentioned earlier, the resignation letter was accepted on 7.04.2014, the appellant was considered to be on an unauthorised absence from 28.04.2014 to 18.05.2014 and was called to report on duty, which he followed and joined on 19.05.2014.
• The appellant argued that as the resignation letter submitted on 5.12.2013 was not finalised, he can’t be considered to be relieved from  his job. Also, he was continuously in touch with the employer, even reporting on duty when called upon his unauthorised absence, which ultimately explains that his resignation was  not accepted. 
• The appellant, instead of relieving him from job moved to High Court, where the decision was rendered in the favour of the appellant by the Single Bench. The decision was later reversed by the Division Bench.

Judgement by the Supreme Court:- 

• The Supreme Court Bench including Justices PS Narasimha and Pankaj Mithal observed that it cannot be accepted that the appellant resigned from his job as he was in contact with the employer continuously. Also, no formal communication was followed through by the employer, informing the appellant of his dismissal or the acceptance of his resignation. 
• The Court pointed out that even though it could be accepted that there is a letter regarding the acceptance of resignation by the appellant dated 15.4.2014, it must be noted that such letter is a part of internal communication and that there is an absence of a clear communication with the employee/ appellant regarding the same.  
• The Court also observed that the fact of asking the appellant to join the duty after his “unauthorised absence” from 28.04.2014 to 18.05.2014, indicates that the letter of resignation dation 5.12.2013 was not finalised. 
• Thus, accepting the judgement passed by the  Single Judge Bench of the High Court, the argument put forth by the respondent regarding the denial of the letter to withdraw the resignation letter by the appellant, was rejected by the  Supreme Court.
• The Supreme Court directed the Konkan Railway Corporation to reinstate the appellant within a period of 30 days from the date of order. The appellant would, however, be entitled to 50 percent of the salary for the period he was relieved from the service, the amount will be calculated and paid within 2 months from the date of order.

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