Modified Voluntary Retirement Scheme

The present case is not one of resignation per se but of exercising an option available under Modified Voluntary Retirement Scheme. Clause 5.1 required, the post to be abolished simultaneously with request of voluntary retirement being accepted. This had to be done before disbursing retirement benefits. There was a specific stipulation, no person would be engaged in his/her place. The objective was clear: it should not be on the one hand, manpower is reduced by giving benefit of MVRS to an employee and on the other, some other person is deployed. It would be destructive of why MVRS was propounded, i.e., on account of precarious financial condition.

Thus, in our view, once letter of resignation was accepted on 28.05.2003, the post stood abolished. It has rightly been contended, mere delay in relieving from duties would not impact acceptance of resignation [Air India Express Limited, (2019) 17 SCC 129].

Hon’ble Justice Sanjay Kishan Kaul, M/s. New Victoria Mills v. Shrikant Arya, [Civil Appeal No. 5685 of 2021].