The Supreme Court has held that once an employer accepts the voluntary retirement scheme application of an employee, the latter cannot withdraw from the scheme even if he was continued in service beyond the cut off date due to lack of funds to settle his dues.

This ruling was given by a bench comprising Justice Shivaraj V Patil and Justice Arijit Pasayat while disposing of a batch of petitions concerning the VRS acceptance of certain employees of Andhra Pradesh State Industrial Development Corporation.

Some of the employees had contended that as they had been continued in service in the APSIDC for more than seven months after the cut off date, they should be permitted to withdraw their applications for VRS.

The state high court ruled in their favour and had directed the APSIDC to take them back.

Setting aside the high court order, the Supreme Court said that the question of withdrawal of their applications made for seeking voluntary retirement after their acceptance did not arise and they could not be permitted to do so in law.

"It is fairly settled now that the voluntary retirement once accepted in terms of the scheme or rules, as the case may be, cannot be withdrawn," Justice Patil, writing for the bench, said.

However, taking into account the fact that these employees had accepted VRS in 1998 and continued till date in service due to litigation, the bench said it would not be proper to disturb their services now as many of them might have been retired by now.