13 July 2006
Supreme Court
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GYANENDRA SAHAY Vs M/S. TATA IRON & STEEL CO. LTD.

Bench: DR.AR.LAKSHMANAN,LOKESHWAR SINGH PANTA
Case number: C.A. No.-001396-001396 / 2006
Diary number: 8487 / 2005
Advocates: Vs M. K. DUA


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CASE NO.: Appeal (civil)  1396 of 2006

PETITIONER: GYANENDRA SAHAY

RESPONDENT: M/S. TATA IRON & STEEL CO. LTD.

DATE OF JUDGMENT: 13/07/2006

BENCH: Dr.AR.LAKSHMANAN & LOKESHWAR SINGH PANTA

JUDGMENT: J U D G M E N T

Dr.AR.LAKSHMANAN,J.  

       This appeal is directed against the order passed by the Division Bench  of the High Court of Jharkhand at Ranchi allowing the appeal filed by the  respondent herein.         1)  The appellant was appointed as Management Trainee with the  respondent-company.  He was confirmed as Executive Assistant in the Office of  Controller of Budgets at Jamshedpur.  He was transferred to in the Mines Unit  in August, 1989. On 23.02.1994, he was posted to perform his duties in the  Engineering Cell.       2) According to the respondent herein, the appellant  submitted an application on 01.04.1995 for his premature/voluntary retirement  with a request to consider his case for payment of ex-gratia amount, in view of  his long association with the company.  The application for voluntary retirement  was accepted on the same day i.e. 1st April, 1995.  According to the appellant,  he was compelled to retire prematurely and was compelled to submit  application  for compulsory retirement due to undue and excessive pressure,  exercised by officers of the company.  The appellant made request to re- consider his case sympathetically  and reinstate him in service by revoking the  retirement given to him and transfer him back to Jamshedpur in any suitable  Department and also pay his increment for January, 1994 and January, 1995.   The prayer was made to the management to consider his case sympathetically,  specially because his entire settlement has been adjusted against his building  loan with the result that after working for 15 years in the respondent-company,  he does not know how to manage my family.         3)  The respondent by letter dt.22.06.1995 rejected the request of the  appellant stating that since the appellant has resigned from service of the  company from 1st April, 1995 and that his resignation has been accepted, it will  not be possible to consider his case for employment in the company.  The  appellant raised an industrial dispute before the Labour Court under the Bihar  Shops & Establishments Act contending that his resignation was not voluntary  and he was forced to submit the application for premature/voluntary retirement.   The preliminary issue as to the maintainability of the matter before the Labour  Court was also raised which was overruled by the Labour Court.  Finally, the  Labour Court held that the appellant is entitled to relief of reinstatement in  service with full back wages and other consequential benefits.          4)  Aggrieved by the award passed by the Labour Court, the respondent  preferred Civil Writ Petition No.3802 of 1999 before the High Court of Judicature  at Patna, Ranchi Bench. Learned Single Judge of the said court after  considering rival contentions was of the opinion that since the resignation was  accepted on the same day and the complainant-appellant was relieved on the  same day, the same was  quite unnatural and that by itself created a doubt in  the mind of the court.  The learned Single Jude also held that the appellant was  coerced to submit his resignation letter and the same was accepted on the  same day and, therefore, it was not voluntary and it will amount of illegal  termination of services of the appellant.          5)  On being aggrieved, the respondent preferred an appeal before the  Division Bench of the High Court.  The Division Bench by its judgment

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dt.24.01.2005 allowed the appeal filed by the respondent herein.  Aggrieved by  the said judgment of the Division Bench of the High Court, the appellant has  come before this Court by filing the Special Leave Petition No.9744/2005.  Leave  was granted by this Court on 24.02.2006.   

       6)  The appellant-in-person has argued his case. He invited our attention  to various letters and correspondence that were exchanged between the  appellant and the respondent-company and also drew our attention to the order  passed by the Labour Court, the learned Single Judge and the Division Bench.  He also invited our attention to the evidence led before the Labour Court.  Since  the appellant is a party-in-person, we allowed him to argue this case at length  and gave him a full and patient hearing.  The appellant reiterated the grounds  raised in the Civil Appeal at the time of hearing and submitted that he was  summoned to Jamshedpur and compelled to submit the letter of  premature/voluntary retirement.         7)  We have also heard Mr.Raju Ramachandran, learned senior counsel  for the respondent.  He also explained the circumstances under which the letter  of resignation was accepted.  According to Mr.Raju Ramachandran, after the  resignation was accepted, the management has paid his entire retiral benefits  to the appellant herein.  Mr. Ramachandran also submitted that even though the  appellant has submitted his letter of premature/voluntary retirement on  01.04.1995, he represented to the management after 48 days requesting them to  re-consider his request for premature/voluntary retirement and reinstate him in  service.                  8)  The only issue which arises for re-consideration is whether the  appellant was compelled to write and sign the application for  premature/voluntary retirement due to undue and excessive pressure,  exercised by officers of the respondent-company.           9)  We have carefully read the judgment passed by the learned Judges  of the Division Bench of the High Court.  The learned Judges while rejecting the  contention of the appellant herein have given cogent and convincing reasons in  arriving at the conclusion in the appeal.  This apart, the appellant in his own  handwriting submitted the letter dt.01.04.1995 for premature/voluntary  retirement which was accepted on the same day.  When the letter was written in  the handwriting of the appellant and presented the same in-person to the  authority concerned, it cannot be said that the service of the respondent was  dispensed with  by the respondent-employer unauthorisedly.      10)  We have  carefully perused the letter dt.01.04.1995 which reads thus :-

       "G.M.(O.M.& Q)           N.I.M.                                        Dt.1.4.95         Dear Sir,         I have been working with the Company for the last 15 years.  Now I  wish to retire prematurely from the Company with all retiring  benefits.  I would also request the company to consider paying me  some Ex-gratia amount considering my long association with the  Company.  

       Thanking you,                                                           Yours faithfully

                                             Sd/-Gyanendra Sahay                                                  (GYANENDRA SAHAY)                                                         P.NO.110017                                                 Dy.Manager (Admn.)"         11)  The above request was accepted by the General Manager on the  same date i.e.1st April, 1995 and the following letter was handed over to the  respondent, accepting his premature/voluntary retirement.  The said letter  reads as follows :-               "THE TATA IRON AND STEEL COMPANY LIMITED                                 JAMSHEDPUR 831001 INDIA                                                           AO/6458/95 Mr.Gyanendra Sahay P.No.110017

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Dy.Manager(Admn.) Mines Division, Noamundi

Dear Mr.Sahay,

Re:-Your letter dt.1.4.95

Kindly refer to your letter of 1.4.95.  After due consideration, and also  keeping in view your long association, the Company has agreed, as a  special case, to retire you as requested by you with immediate effect.

You will be entitled to all the retiral benefits of the Company which  would have otherwise been available to you at your superannuation.   In addition, your request for ex-gratia is being considered separately.   

Please get in touch with the General Manager (Finance & Accounts)  for your full and final settlement.   We wish you and your family the very best in life.

                                               Yours sincerely,

                                               Sd/- (illegible)                                                 (M.Fasihuddin)                                         General Manager (O M & Q)"

       12)     It is seen from the said letter that the request for  premature/voluntary retirement was accepted by the management on  01.04.1995 with immediate effect. The letter also clearly states that the  appellant will be entitled to all the retiral benefits of the Company which  would have otherwise been available to him at his superannuation.  The  management has also stated that the appellant’s request for ex-gratia is  being considered separately. By the said letter, the appellant was directed to  get in touch with the General Manager (Finance & Accounts) for his full and  final settlement.         13)     In this context, it is useful to refer page 96 of the appeal  paperbook which was marked as Annexure P-5 which is a letter dt.12.4.1995  addressed to the appellant.  It is stated in the letter that the management has  decided to extend the following facilities to the appellant on his premature  retirement :-         "1.Retiring Gratuity as per rules for the actual          service rendered  by you. 2       Provident Fund, including Co.’s contribution in full. 3       Superannuation Fund, as per rules. 4       Payment of cash, equivalent to the privilege and furlough leave  including proportionate leave due to you. 5       Free medical facilities as applicable to the retiring officers in  the respective divisions.

       In addition to the above, you will be eligible for an ex-grade payment,  details of which will be available with DM (Accounts), Mines Division.   You may kindly contact him on any working day during office hours."

       14)     We have also perused the Memo of Appeal and other  representation made by the appellant.  The appellant has made a vague allegation that he was forced to take retirement.  Neither he has  made it specific nor had  given the name of any officer who compelled him to  write the letter dt.1st April, 1995 or exercised undue and excessive pressure  to sign the letter of premature/voluntary retirement.  Though the Labour  Court has come to the conclusion that the appellant was compelled to submit  the letter of resignation, the same is not supported by any acceptable  evidence.  It is settled law that suspicion and doubt cannot take the place of

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evidence.  No finding of fact can be given on mere doubt and suspicion or on  the basis of baseless allegations.  The appellant having written letter of  voluntary retirement and after having accepted the retiral benefits without  any protest cannot now turn round and say that he was compelled to submit  his premature/voluntary retirement.  The appeal has absolutely no merits and  we, therefore, have no hesitation to dismiss the same and to affirm  the order  passed by the learned Judges of the Division Bench of the High Court.  No  order as to costs.         15)     It is submitted by Mr.Raju Ramachandran, learned senior  counsel for the respondent that all the retiral benefits including ex-gratia has  been paid and settled to the appellant.  On the other hand, the appellant-in- person states that all the retiral benefits as per the Terms of Accptance have  not been paid fully to him.  If there is any amount due, the appellant is at  liberty to approach the respondent-management by making a representation  claiming the said amount.  If such a claim is made, the management is  directed to consider the same and pass appropriate orders in accordance  with law.