No Pension For Government Employees Who Resign – Supreme Court of India

No Pension For Government Employees Who Resign – Supreme Court of India

Supreme Court Important Ruling on Pension

Government Employees becomes ineligible for pension under the Central Civil Services Pension Rules (CCS Pension Rules) when he resigns – Supreme Court Rules

Making a distinction between voluntary retirement and resignation, the Supreme Court has said that government employees will not be entitled to pension if they resign from service as it forfeits their past service.

Referring to the Central Civil Services Pension Rules, a bench of Justices D Y Chandrachud and Hrishikesh Roy said that in case of resignation, the entire past service would be forfeited, and consequently, an employee would not qualify for pensionary benefits.

The pension rules apply to government servants, including civilian government servants in the defence services, appointed before December 31, 2003.

The court passed the order on an appeal filed by BSES Yamuna Power Ltd challenging an order of the Delhi high court directing it to provide pension to an employee who resigned after 20 years of service. The HC had said that the employee was entitled to get voluntary retirement after completing 20 years of service and he was, therefore, entitled to pensionary benefits after resigning from the job.

The apex court, however, said taking voluntary retirement and resigning from job are two different things and pension cannot be given in case of resignation. “Where an employee has resigned from service, there arises no question of whether he has in fact voluntarily retired or resigned. The decision to resign is materially distinct from a decision to seek voluntary retirement. The decision to resign results in the legal consequences that flow from a resignation under the applicable provisions. These consequences are distinct from the consequences flowing from voluntary retirement and the two may not be substituted for each other based on the length of an employee’s tenure,” the bench said.

The apex court said though both involve voluntary acts, they operate differently. “One of the basic distinctions is that in case of resignation it can be tendered at any time, but in the case of voluntary retirement, it can only be sought for after rendering the prescribed period of qualifying service. Another fundamental distinction is that in case of the former, normally retiral benefits are denied but in case of the latter, the same is not denied,” the court said while referring to its earlier verdicts.

Source: The Times of India