No Pension for those who resigns in Government Job

BSES YAMUNA POWER LTD v. Ghanshyam Chand Sharma (Civil Appeal No. 9076 of 2019)

Pension and gratuity of the employees retiring from Central Government Departments is regulated by the Central Civil Services (Pension) Rules, 1972. A Government servant appointed on or before 31.12.2003 is eligible for such pension. Recently in the case of BSES Yamuna Power Ltd v. Ghanshayam Chand Sharma the Supreme Court clarified the legal stand on the eligibility of this pension under the CCS Pension Rules. As per the CCS rules an employee cannot claim pension after resigning from job. Supreme Court in this case reiterated this rule and clarified the difference between resignation and voluntary retirement.

In this case Ghanshyam Chand Sharma (respondent)was appointed as daily rated mazdooron 9 July 1968and got the post of a peon on 22^nd December 1971. He later resigned on 7^th July 1990. He was denied pension on the ground that he had not completed 20 years of mandatory service for voluntary retirement.He had also forfeited his past services by resigning and therefore could not claim pensionary benefits. Sharma challenged this order in Delhi High Court and Delhi High Court ruled in favor of the employee on the ground that he had completed 20 years of service and hence his resignation should be treated as voluntary retirement.

The Apex Court cited Rule 26 of the Central Civil Service (Pension) Rules 1972, which says that an employee forfeits his past service upon resignation. “Resignation from a service or a post, unless it is allowed to be withdrawn in the public interest by the Appointing Authority, entails a forfeiture of past service…” is held by Rule 10 of CCS (Pension) Rules 1972.The Apex Court set aside the verdict of Delhi High Court and held that by resignation Sharma had “submitted himself to the legal consequences that flow from a resignation under the provisions applicable to his service.” The court held that irrespective of the fact that employee has completed the requisite number of years of service or not, His decision to resign cannot be treated as voluntary retirement as it would nullify rule 26 of the Central Civil Services (Pension) Rules, 1972 and there is a clear distinction between resignation and voluntary retirement. Court held that “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.”However, if any employee has completed 20 years of service he can voluntarily retire

This Post is written by Abhay Tripathi from SLS-Pune. For more info, dial 99888-17966.