Judgment Case ID: 5961

Judgment:
ivil Appeal No. 2014 of 1986. From the Judgment and Order dated 24.4. 1986 of the Delhi High Court in C.W. No. 477 of 1986. Dr. Anand Prakash	 D. Mehta	 Atul Nanda and S.K. Mehta for the Appellant. S.K. Bisaria for the Respondent. The Judgment of the Court was delivered by RANGANATHAN	 J. A very short question as to the inter pretation of the service regulations of the appellant bank comes up for consideration in this appeal. The relevant service regulation is Regulation No. 20 which reads as under: "20(1) Subject to sub regulation (3) of regu lation 16	 the bank may terminate the services of any officer by giving him three months ' notice in writing or by paying him three months ' emoluments in lieu thereof. 615 (2) No officer shall resign from the service of the bank otherwise than on the expiry of three months from the service on the bank of a notice in writing of such resignation. Provid ed further that the competent authority may reduce the period of three months	 or remit the requirement of notice. " The respondent	 a permanent officer in the bank	 sent a communication to the bank on 21st January	 1986. By this letter he purported to resign from the service of the bank due to personal reasons. He added that the date of receipt of the letter should be treated as the date of the commence ment of the notice period so that	 inclusive of the same	 his resignation would become effective on 30th June	 1986. According to the respondent	 the Deputy General Manager	 who was the competent authority under the Service Regulations	 had agreed that the resignation may be accepted with effect from 30th June	 1986. However	 what actually transpired was that the respondent received a letter from the bank on 7th February	 1986 informing him that his resignation letter dated 21st January	 1986 had been accepted by the competent authority with immediate effect by waiving the condition of notice and that	 consequently	 he was being relieved from the service of the bank with effect from the afternoon of the same date	 namely	 7th February	 1986. The respondent thereupon filed a writ petition in the High Court challeng ing the validity of the purported acceptance of his resigna tion with effect from 7th February	 1986 and for a direction to the bank to treat him as in service of the bank up to 30th June	 1986 and as entitled to all benefits while being in such service. A further development took place after the filing of the writ petition and before it came up for hearing. On 15th April	 1986	 the respondent wrote a letter to the bank by which he purported to withdraw the resignation letter dated 21st January	 1986. The High Court	 therefore	 dealt with the situation resulting from this subsequent development. The High Court held that the petitioner 's resignation letter would have become effective only on the 30th June	 1986. Under the regulations there was no jurisdiction whatever in the competent authority to determine his services earlier. Until the resignation became effective on 30th June	 1986	 the petitioner had a right to withdraw the same and in fact had also exercised that right. The High Court concluded: "We may notice that this writ petition was filed at a stage 616 when the petitioner had not sent his letter dated 15th April	 1986 whereby he withdrew his resignation letter dated 2 Ist January	 1986. This is a subsequent development during the pendency of the writ petition. Therefore	 we are not called upon to decide the earlier grievance that the resignation could not have been accepted at an earlier date. Even to that submission we would have said that there is no provision of acceptance but that question does not arise so we will not deal with it further. Result is that the impugned order dated 7th of February	 1986 is hereby quashed and it is declared that the petitioner continues to be in service with the respondent bank. However	 in view of the facts of the present case	 parties are directed to bear their own costs of the present proceedings. " The bank has preferred this appeal. Dr. Anand prakash	 learned counsel for the appellant bank	 submitted that regulation 20(2) provided for a notice to the employer only in order to protect the employer 's interests and to enable the employer	 in case it decided to accept the resignation	 to make other arrangements in place of the resigning employ ee. He submitted that	 this being a provision for the bene fit of the employer	 its requirements could be waived by the employer	 if it so desired	 unilaterally The proviso to clause (2) of the regulation indeed makes it clear that it is open to the bank to waive the requirement of notice or to reduce the period of the notice to less than three months. He	 therefore	 submitted that	 when the respondent sent in his resignation on 21st January	 1986	 it was not incumbent on the bank to wait till 30th June	 1986 when the notice period would expire. It was competent for the bank to waive any notice at all and to accept the resignation with immedi ate effect or with effect from such other date as the bank may consider appropriate. It was further contended by learned counsel that	 once the resignation letter of the respondent had been accepted by the bank and given effect to	 to there was no further possibility of the respondent seeking to withdraw the resignation letter as he has pur ported to do in this case. Learned counsel	 therefore	 submitted that the bank 's letter dated 7th February	 1986 was quite valid and effective and that the respondent 's writ petition ought to have been dismissed. We have given careful thought to this contention of the learned counsel and we are of the opinion that the High Court was right in the conclusion it reached. Clause (2) of regulation 20 makes it incumbent on an officer of the bank	 before resigning	 to serve a notice in writing 617 of such proposed resignation and the clause also makes it clear that the resignation will not be effective otherwise than on the expiry of three months from the service of such notice. There are two ways of interpreting this clause. One is that the resignation of an employee from service being a voluntary act on the part of an employee	 he is entitled to choose the date with effect from which his resignation would be effective and give a notice to the employer accordingly. The only restriction is that the proposed date should not be less than three months from the date on which the notice is given of the proposed resignation. On this interpretation	 the letter dated 21st January	 1986 sent by the employee fully complied with the terms of this clause. Though the letter was written in January	 1986 the employee gave more than three clear months ' notice and stated that he wished to resign with effect from 30th of June	 1986 and so the resig nation would have become effective only on that date. The other interpretation is that	 when an employee gives a notice of resignation	 it becomes effective on the expiry of three months from the date thereof. On this interpretation	 the respondent 's resignation would have taken effect on or about 21.4.1986 even though he had mentioned a later date. In either view of the matter	 the respondent 's resignation did not become effective till 21.4.1986 or 30.6.1986. It would have normally automatically taken effect on either of those dates as there is no provision for any acceptance or rejection of the resignation by the employer	 as is to be found in other rules	 such as the Government. Services Con duct Rules. Much reliance was placed on the terms of the proviso to clause (2) of regulation 20 to justify the action of the bank in terminating the respondent 's services earlier but we do not think that the proviso can be interpreted in the manner suggested by learned counsel for the bank. The resig nation letter of the officer has to give at least three months ' advance notice under the main part of the clause. What the proviso contemplates is that in a case where the employee desires that his resignation should be effective even before the expiry	 of the period of three months or without notice being given by him	 the bank may consider such a request and waive the period or requirement of notice if it considers it fit to do so. That question does not arise in the present case because the employee had not requested the bank to reduce the period of notice or to waive the requirement of notice. Dr. Anand Prakash seeks to interpret the proviso as empowering the bank	 even without any request= on the part of the employee	 to reduce the period or waive the requirement of notice. In other words	 he says the bank has power to accept the resignation with immediate effect even though 618 the notice is only of a proposed future resignation. We do not think this contention can be accepted. As we have al ready mentioned	 resignation is a voluntary act of an em ployee. He may choose to resign with immediate effect or with a notice of less than three months if the bank agrees to the same. He may also resign at a future date on the expiry	 or beyond the period	 of three months but for this no further consent of the bank is necessary. The acceptance of the argument of Dr. Ananad Prakash would mean that	 even though an employee might express a desire to resign from a future date	 the resignation can be accepted	 even without his wishes	 from an earlier date. This would not be the acceptance of a resignation in the terms in which it is offered. It amounts really to forcing a date of termination on the employee other than the one he is entitled to choose under the. regulations. As rightly pointed out by the High Court	 the termination of service under clause (2) becomes effective at the instance of the employee and the services of the employee cannot be terminated by the employer under this clause. Dr. Anand Prakash emphasises that as clause (2) and its proviso are intended only to safeguard the bank 's interests they should be interpreted on the lines suggested by him. We are of the opinion that clause (2) of the regulation and its proviso are intended not only for the protection of the bank but also for the 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 he has taken a firm decision tO resign	 he may not be ready to go out immediate ly. In most cases he would need a period of adjustment and hence like to defer the actual date of relief from duties for a few months for various personal reasons. Equally an employer may like 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 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 the employee could have become effective only on or about 21st April	 1986 or on 30th June	 1986 and that the bank could not have "accepted" that resignation on any earlier date. The letter dated 7th February	 1986 was	 therefore	 without jurisdiction 619 The result of the above interpretation is that the employee continued to be in service till the 21st April	 1986 or 30th June	 1986	 on which date his services would have come normally to an end in terms of his letter dated 21st January	 1986. But	 by that time	 he had exercised his right to withdraw the resignation. Since the withdrawal letter was written before the resignation became effective	 the resignation stands withdrawn	 with the result that the respondent continues to be in the service of the bank. It is true that there is no specific provision in the regulations permitting the employee to withdraw the resignation. It is	 however	 not necessary that there should be any such specif ic rule. Until the resignation become effective on the terms of the letter read with regulation 20. it is open to the employee	 on general principles	 to withdraw his letter of resignation. That is why	 in some cases of public services	 this right of withdrawal is also made subject to the permis sion of the employer. There is no such clause here. It is not necessary to labour this point further as it is well settled by the earlier decisions of this Court in Raj Kumar vs Union of India	 [1963] 3 SCR 857; Union of India vs Gopal Chandra Misra	 ; and Balram Gupta vs Union of India	 ; Learned counsel for the appellant relied on certain observations in Delhi Electric Supply Undertaking vs Tara Chand	 Certain other decisions were also cited by Dr. Anand Prakash but we do not think that they have any bearing on the issue before us. Tara Chand was a case under regulation 8 of the regulations made by the Delhi Electric Supply Undertaking under the . The regulation permitted the termination of the services of a servant of the undertaking "on notice of three months from either side without any cause to be assigned in case of permanent servants". The employee in that case sent a letter to the employer stating that "he was compelled to resign for various reasons" and this resignation was accept ed by the undertaking. The Delhi High Court in its judgment (to which one of us was a party) observed that notice under the regulation was intended for the benefit of the employer which could	 if it considered necessary or proper	 waive the period of notice and accept the resignation with immediate effect. But that was a case where the employee	 though bound to give three months ' notice	 expressed his desire to resign with immediate effect and it was also accepted by the em ployer. It was not the case that he had given notice indi cating a desire to be relieved at a future date. The analogy of that case would have applied to the present case as well if the respondent here had expressed his desire to be re lieved immediately even before the expiry of the three months ' notice period and the bank had accepted it. The 620 employer would then certainly have been entitled to accept the resignation	 as requested by the employee	 waiving the notice period. The distinction between that case and the present one is that	 here	 the employee has chosen a future date on which his resignation would be effective but he is being forced to "resign" before such date. For the reasons discussed above	 we affirm the decision of the High Court and dismiss this appeal. As the employee has got a relief much larger than the one for which he initially came to Court and which has been made possible by his subsequent conduct	 we make no order as to costs. P .S.S. Appeal dis missed.

Summary:
Clause (2) of Regulation 20 of the Service Regulations of the Punjab National Bank lays down that no officer shall resign from the service of the bank otherwise than on the expiry of three months from the service on the bank of a notice in writing of such resignation. The proviso thereto empowers the competent authority to reduce the period of three months or remit the requirement of notice. The respondent	 a permanent officer of the bank	 made an application on 21st January 1986	 purporting to resign from the service with effect from 30th June	 1986. He	 however	 received a letter from the bank on 7th February	 1986 in forming him that his resignation letter had been accepted by the competent authority with immediate effect by waiving the condition of notice. He thereupon filed a writ petition in the High Court challenging the validity of the purported acceptance of his resignation with effect from 7th February	 1986 and for a direction to consider him as in service up to 30th June	 1986. Thereafter	 on 15th April	 1986 he wrote another letter to the Bank purporting to withdraw the resignation letter dated 21st January	 1986. The High Court held that the petitioner 's resignation letter would have become effective only on the 30th June	 1986	 that under the Regulations there was no jurisdiction whatever in the competent authority to determine his service earlier than that and that until the resignation became effective on 30th June	 1986 he had a right to withdraw the same. Consequently	 it quashed the order dated 7th February	 1986 and declared that the petitioner continued to be in service with the bank. 613 In this appeal by special leave it was contended for the appellant that Regulation 20(2) provided for a notice to the employer only in order to protect the employer 's interests	 that its requirements could	 therefore	 be waived by the employer if it so desired unilaterally	 that under the proviso to clause (2) it was competent for the bank to waive any notice at all and to accept the resignation with immedi ate effect or with effect from such other date as the bank may consider appropriate. Dismissing the appeal	 HELD: 1. Until the resignation becomes effective on the terms of the letter read with Service Regulation 20 of the Punjab National Bank	 it is open to the employee	 on general principles	 to withdraw his letter of resignation. [619C] Raj Kumar vs Union of India	 ; Union of India vs Gopal Chandra Misra	 ; and Balram Gupta vs Union of India	 ; 2. Clause (2) of Regulation 20 makes it incumbent on an officer of the bank	 before resigning	 to serve a notice in writing of such proposed resignation. The clause also makes it clear that the resignation will not be effective other wise than on the expiry of three months from the service of such notice. [616H; 617A] 3. What the proviso to clause (2) contemplates is that in a case where the employee desires that his resignation should be effective even before the expiry of the period of three months or without notice being given by him	 the bank may consider such a request and waive the period or require ment of notice if it considers it fit to do so. It does not empower the 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 resig nation. In the instant case	 the employee had not requested the bank to reduce the period of notice or to waive the requirement of notice. [617F; 618G] 4. There are two ways of interpreting clause (2). One is that the resignation of an employee from service being a voluntary act on his part he is entitled to choose the date with effect from which his resignation would be effective and give a notice to the bank accordingly. The only restric tion is that the proposed date should not be less than three months from the date on which the notice is given. In the instant case	 the letter dated 21st January 1986	 sent by the employee purporting to 614 resign with effect from 30th June	 1986 fully complied with the terms of this clause and so the resignation would have become effective only on that date. The other interpretation is that when an employee gives a notice or resignation	 it becomes effective on the expiry of three months from the date thereof. On this interpretation the respondent 's resig nation would have taken effect on or about 21st April	 1986 even though he had mentioned a later date. In either view of the matter	 the respondent 's resignation did not become effective till 21st April	 1986 or 30th June	 1986. The bank could not have accepted that resignation on any earlier date. The letter dated 7th February	 1986 was	 therefore	 without jurisdiction. [617A B; 618A B	 G H] The respondent had thus continued to be in service till the 21st April	 1986 or 30th June	 1986. But	 by that time	 he had exercised his right to withdraw the resignation. Since the withdrawal letter was written before the resigna tion became effective	 the resignation stood withdrawn with the result that the respondent continued to be in the serv ice of the bank. [619A B] Delhi Electric Supply Undertaking vs Tara Chand	 	 distinguished.