In Brief
The Madhya Pradesh State Road Transport Corporation introduced a Voluntary Retirement Scheme (VRS) for its employees to manage its eventual closure. The VRS allowed employees to opt for voluntary retirement, but with a strict stipulation that offers could not be withdrawn once made. Several employees submitted VRS applications, then sought to withdraw them after the Scheme's closing date (August 1, 2005), but their withdrawals were refused and their applications were accepted. The Supreme Court held that while employees can generally withdraw VRS applications before employer acceptance, such withdrawal must occur during the validity period of the Scheme itself. Once the Scheme closes, withdrawal is no longer permissible, even if the application remains unaccepted. The Court distinguished between two separate Scheme periods and allowed only those who withdrew during their respective valid periods to claim reinstatement.
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