Resigned Govt Employees Not Entitled to Pension - Synopsis

                       BSES Yamuna Power Ltd vs Sh. Ghanshyam Chand Sharma & Anr.

                               Civil Appeal No. 9076 of 2019

 On July 9, 1968, the  respondent was appointed as a daily mazdoor. On 22 December 1971, his services were regularized on a Peon's post. On 7 July 1990, the respondent applied for his resignation, which the appellant accepted with effect from 10 July 1990

The appellant subsequently denied the  respondent retirement benefits on two grounds. Firstly, he had not completed twenty years of service, leaving him unable to receive a pension. Second, in any event, the first respondent had forfeited his past services by resigning and was therefore unable to receive pension benefits. The case was filed in High Court Of Delhi 

The Single Judge of the High Court of Delhi relied on  Asger Ibrahim Amin v LIC directed the appellant to pay pensionary benefits to the first respondent on the ground that he had completed twenty years of service and had "voluntarily retired‟ and not "resigned‟ from service.  Division Bench of the High Court of Delhi upheld the judgement of a Single Judge granting pensionary benefits to the respondent. The appellant challenges these findings in the Supreme Court 

The appellant's Senior Counsel, brought to SC attention that the validity of the court's approach in Asger Ibrahim Amin had been questioned by the Senior Divisional Bench of this Court, in  LIC v Shree Lal Meena (' Shree Lal Meena  '), which referred the matter to a larger Bench of this Court.


The Court in Shree Lal Meena  elucidated the distinction between resignation and voluntary retirement. The view was disapproved in Asger Ibrahim Amin and the court held that by default the rules allowing for early retirement would not be applied retrospectively.  The Supreme Court observed that an employee who has resigned from service is not entitled to pensionary benefits available to those who 'voluntary retired'.  The bench noticed that Rule 26 of the CCS Pension Rules provides that the past service of employee stands forfeited upon resignation


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