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Supreme Court of India 2021-09-27 allowed

M/s. NEW VICTORIA MILLS & ORS vs SHRIKANT ARYA

Bench: 2 — Sanjay Kishan Kaul, M.M. Sundresh

In Brief

A textile worker submitted a resignation application under a Modified Voluntary Retirement Scheme (MVRS) in July 2002. The employer accepted it on 28 May 2003, but later postponed the relieving date. The employee then tried to withdraw the resignation on 1 July 2003, claiming it was not validly accepted. The High Court favoured the employee, but the Supreme Court reversed this decision. The Court held that once the resignation was accepted on 28 May 2003, it became final and could not be withdrawn. The postponement of the relief date did not nullify the prior acceptance. The employee was entitled to all benefits under the scheme, which had already been paid. The Court emphasized that voluntary retirement schemes are governed by contract law principles of offer and acceptance.

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Labour Law Voluntary Retirement Scheme Contract Law Public Sector Undertakings Resignation

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