Employee Who Resigns Not Entitled To Pension; Resignation Forfeits Past Service: Supreme Court

The Supreme Court has held that an employee who resigns from service is not entitled to pensionary benefits under the Central Civil Services (Pension) Rules, 1972, as resignation results in forfeiture of past service.

The Court rejected the plea that resignation should be treated as voluntary retirement and observed that the two are distinct under the rules.

It held that pension entitlement arises only on voluntary retirement after complying with the statutory notice requirement.

While upholding denial of pension, the Court allowed payment of gratuity and leave encashment to the employee’s legal heirs.

[Ashok Kumar Dabas (Dead Through Legal Heirs) v. Delhi Transport Corporation]