Gujarat High Court Upholds Order Denying Reinstatement Of 448 Employees On Ground Of Not Withdrawing Voluntary Retirement In Time

The Gujarat High Court dismissed a batch of appeals challenging an order refusing to grant 448 individuals reinstatement with Indian Petrochemicals Corporation Ltd. on the ground that they had opted for voluntary retirement and did not withdraw from the concerned scheme within the validity period. The court observed that the employees had admitted that they filed applications for withdrawal from the scheme after the 20.03.2007 the date on which the validity ended. It also rejected the employees contention that that they had a "vested right" to withdraw the application before being relieved from service. Referring to the deposition of Power of Attorney holder of the employees a division bench of Justice AS Supehia and Justice RT Vachchani in its order said:"Thus, from the evidences, it is established that all the employee were aware of the last date of the Scheme. Though, the POA has contended that the employees had filed the withdrawal application on 20.03.2007, there is not a single application of withdrawal of such date, which is either placed before the Labour Court or before this Court. Some of the applications, which are produced are between 21.03.2007 till 23.03.2007. The employees in their evidence have accepted that they have filed such application after 20.03.2007, between these dates. All employees were relieved in the first week of April, 2007. On 03.04.2007, they were handed over cheques for the amount of gratuity, which they deposited in their bank accounts". The court thus said that the employees had failed to prove that they had filed the application for withdrawal from VSS on or before 20.03.2007, and all the applications are subsequent to the closure of the Scheme.Referring to Supreme Court judgments the court said that Apex Court has summarized that in cases where the scheme is contractual in nature and not a statutory in character, the provisions of the Indian Contract Act, 1872 would apply. "A VRS / VSS scheme floated by the employer would be treated as an “invitation to offer” and the application submitted by an employee pursuant thereto would constitute an “offer”. Such an offer does not amount to resignation in praesenti, and it can be withdrawn during the validity period of the scheme," the bench noted.The high court observed that in the present case, the appellants did not filed the withdrawal applications during the validity of scheme, but had filed it subsequently, that too when the Company passed an office order in the night hours of 20.03.2007, which was placed by way of Circular dated 21.03.2007.The court said that the employees have no case since they filed the withdrawal after the validity of the scheme."...it is an admitted fact that all the appellant–employees submitted their withdrawal applications between 21.03.2007 and 23.03.2007. The VSS is not statutory in nature. The Labour Court and the learned Single Judge have disbelieved that the appellant employees went in the night hours on 20.03.2007 to submit their applications for withdrawal. We also do not find any cogent evidence in this regard. The applications, which are on record do not bear any date of 20.03.2007, but are subsequent. The last date of validity of the scheme was 20.03.2007. Had the appellant- employees submitted their withdrawal applications during the validity period, they would have had an indefeasible right to withdraw from the VSS. It is an admitted fact that 19 applications made by other employees before the expiry of the scheme are accepted by the Company. Once the scheme got closed on 20.03.2007, the Company was not under an obligation to pass orders either accepting or rejecting the withdrawal applications submitted thereafter...we find no merit in the submissions of the appellant–employees that they had the vested right to withdraw the application before their relieving from service on the ground that their jural relationship continued with the Company". The court said that the jural relationship having being continued until the first week of April 2007 or till one months' notice period, and the appellants' right to withdraw from the VSS during this period pales into insignificance in view of the fact that the appellants have not submitted their applications during the validity of the Scheme.The court also said that the existence of office order nor the manner in which it has been issued can be doubted, as 1422 employees have taken the benefit of the scheme which emanates from the office order. The court said that none of these employees have raised any doubt about the existence of the Office Order dated 20.03.2007, and communication of the same vide Circular dated 21.03.2007. "It was placed at the conspicuous place i.e. on the Notice Board. From documents on record, we find that mode of placing of the instructions on the Notice Board is accepted by the employees of the Company, which included 1422 employees. Hence, the existence and validity of the Office Order dated...

Gujarat High Court Upholds Order Denying Reinstatement Of 448 Employees On Ground Of Not Withdrawing Voluntary Retirement In Time

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