Referring to the Central Civil Services Pension Rules, the Supreme Court has said that central government employees seeking resignation will not be entitled to pension as it forfeits their past service. However, employees seeking a voluntary retirement can avail pensionary benefits.
The Supreme Court bench comprising Justices DY 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 court also made clear distinction about resignation and voluntary retirement, saying that both operate differently, “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”.
“One of the basic distinctions is that in the 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,” the judgment said.
The court passed the order on an appeal filed by BSES Yamuna Power Ltd challenging an order of the Delhi high directing it to provide pension to an employee who resigned 20 years also.