Delhi High Court New Employer Cannot Deny Appointment if Previous Employer Has Relieved Employee

In a notable judgment, the Delhi High Court, through a single-judge bench of Justice Jyoti Singh, ruled that a new employer cannot revoke an employment offer if the previous employer has formally relieved the employee. This ruling came in the case of Matthew Johnson Dara v. Hindustan Urvarak and Rasayan Ltd., where the Court upheld the employee’s right to join the new position, dismissing the respondent’s grounds for revocation.

Background

Matthew Johnson Dara, the petitioner, previously held the position of General Manager (Finance) at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL). In January 2024, Hindustan Urvarak and Rasayan Ltd. advertised a vacancy for Vice President (Finance), a role for which Dara applied. He successfully passed the selection process and was offered the position in a letter dated June 7, 2024, with instructions to join by July 5, 2024.

Upon receiving the offer, Dara promptly submitted his resignation to BVFCL, requesting to be relieved within 15 days. Since he was on probation, he assumed he would not be required to serve a notice period. However, BVFCL delayed the resignation process, issuing a memorandum on June 15, 2024, retroactively confirming his service, which complicated his release.

Despite the lack of response from BVFCL, Dara decided to join Hindustan Urvarak and Rasayan Ltd. on July 8, 2024, providing an undertaking that he would submit a relieving letter within 30 days. On July 12, 2024, BVFCL issued a show-cause notice to Dara, questioning his departure and threatening disciplinary action. In response, Dara filed a writ petition in the Gauhati High Court, which subsequently stayed any disciplinary action and directed BVFCL to process his resignation.

However, despite the Gauhati High Court’s order, Hindustan Urvarak and Rasayan Ltd. revoked Dara’s joining on August 19, 2024, citing his failure to provide a relieving letter within the stipulated timeframe. Dara then approached the Delhi High Court, challenging this revocation. On August 28, 2024, the Delhi High Court issued an interim order instructing the respondent not to fill the vacancy until the case was resolved.

Arguments Presented

Dara contended that the Gauhati High Court had already intervened, and BVFCL had issued an official order on October 3, 2024, accepting his resignation and relieving him from duty. He argued that with this formal relieving letter, there should be no obstacle to joining his new position as Vice President (Finance) at Hindustan Urvarak and Rasayan Ltd., as the lack of a relieving letter was the only reason for revocation.

On the other hand, the respondent, Hindustan Urvarak and Rasayan Ltd., asserted that the position remained vacant and that the employee’s qualifications and selection were not in question. The only reason for revoking his appointment, they maintained, was his inability to submit the relieving letter from BVFCL within the stipulated 30-day period.

Court Findings

After examining the facts, Justice Jyoti Singh observed that the sole reason for revoking the petitioner’s joining was his inability to produce the relieving letter from BVFCL, as per his undertaking. The Court noted that since BVFCL had formally relieved him on October 3, 2024, the grounds for revocation no longer held, and there was no barrier preventing Dara from assuming his new role.

The Court also observed that Hindustan Urvarak and Rasayan Ltd. had not initiated any further recruitment process to fill the position, meaning that the post was still vacant and available for the petitioner to occupy. Consequently, the Court quashed the respondent’s revocation order dated August 19, 2024.

Court’s Decision

The Delhi High Court directed Hindustan Urvarak and Rasayan Ltd. to allow Matthew Johnson Dara to join as Vice President (Finance) within one week, restoring his right to the position with all associated benefits. With these observations, the writ petition was allowed.

Conclusion

This decision reinforces the principle that a new employer cannot revoke an appointment based solely on the non-receipt of a relieving letter when the previous employer has subsequently provided it. It highlights the judiciary’s commitment to ensuring fair employment practices and protecting employees’ rights during job transitions.

Case Citation: Matthew Johnson Dara v. Hindustan Urvarak and Rasayan Ltd., 2024 LiveLaw (Del) 1195
Counsel for the Petitioner: Anupam Lal Das, Senior Advocate, with Punit D. Tyagi and Abhishek Mehra, Advocates
Counsel for the Respondent: Praveen Kumar Singh, Sujit Kumar Singh, and Md. Ziauddin Ahmad, Advocates

The Delhi High Court’s ruling is a landmark decision for employment rights in India, reinforcing the responsibilities of employers during job transitions. By mandating that a new employer cannot deny an appointment after a previous employer has accepted the resignation, the Court has provided critical protection for employees seeking career advancement. This judgment not only strengthens employees' rights but also clarifies employers' obligations, ensuring fair practices across the job market.

For those facing similar issues, Legals 365 stands as a trusted partner, ready to offer guidance and support in navigating employment law. If you or your organization needs legal assistance with employment transitions, reach out to Legals 365 for expert advice.

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