SC upholds decision allowing Konkan Railways employee to withdraw resignation

The Supreme Court recently dismissed a review petition filed by Konkan Railways Corporation Ltd against its September 13, 2024 judgment, allowing an employee to withdraw his resignation. Court cited the employee's 23 years of service and directed payment of 50% of back wages.

A bench of Justices P S Narasimha and Pankaj Mithal held the ‘errors’ as pointed out in the review petition do not have the effect of changing the court's decision.

The review petition by Konkan Railway Corporation was against September 13, 2024 judgment of the top court allowing a civil appeal of the respondent-employee, against the judgment and order of the High Court of Karnataka at Bengaluru holding that he cannot withdraw his resignation. 

"While allowing the civil appeal of the employee, we had held that the respondent withdrew his resignation before it was accepted by Konkan Railway Corporation and also that he had rendered 23 years of unblemished service. In the circumstances, we held that it would be unfair to infer severance of service on the basis of contentious correspondence between parties for a couple of months,'' the bench said.

In the review petition, Konkan Railway submitted that the judgment required to be reviewed because of two apparent errors.  It was argued that the conclusion that the letter of Konkan Railway dated April 15, 2014 accepting the respondent-employee’s resignation as internal departmental communication was not correct as the letter was in fact communicated to the employee on April 16, 2014.  It was also contended that the communication of April 16, 2014 was in fact mentioned in the letter of the respondent-employee on May 26, 2014 withdrawing the resignation. 

It was further contended that the employee did not report to duty on May 19, 2014, as mentioned in the judgment, but came to the office only to conclude relieving process. In the circumstances, it was argued that the court ought not to have granted even 50% of back-wages, as this would be contrary to the settled principle of ‘no work, no pay’.

After hearing the counsel for Railways, the court pointed out, the fact remained that, though the respondent employee resigned by letter on December 05, 2013, with effect from January 05, 2014, the final letters of the Konkan Railway of June 23, 2014, July 01, 2014 and July 15, 2014 conclusively established that the resignation was accepted with effect from July 01, 2014. 

There was no doubt about the fact that the respondent-employee withdrew his resignation on May 26, 2014 i.e. much before July 01, 2014, when he was relieved, as is evidenced by letters and office orders of June 23, 2014, July 01, 2014 and July 15, 2014, the court said.

In any event of the matter, justice and equity lie in favour of the employee, who has rendered 23 years of unblemished service, the bench emphasised.  "Seen in this context, we are of the opinion that it will be unjust to interpret few letters exchanged between the parties to hold that the employee has deliberately and consciously resigned, particularly when he has been contesting the case for more than a decade. It is in this background we had directed that interests of justice would be sub-served if we direct that the respondent-employee will be entitled to receive only 50% of salary from 01.07.2014 to the date of reinstatement,'' the bench added.

Case Title: Konkan Railway Corporation Ltd & Ors Vs S D Manohara

Order Date: November 25, 2025

Bench: Justices PS Narasimha and Pankaj Mithal