No Pension For Government Employees Who Resign Before 20 Years of Service: Supreme Court

Resignation before completing 20 years and voluntary resignation after completing 20 years in service are not the same, the apex court noted.

New Delhi: If government employees resign before completing 20 years in service (forfeiting past service), they are not eligible for pension under the Central Civil Services Pension Rules, the Supreme Court has ruled on Thursday, giving its verdict on a case relating to the resignation of an employee of BSES Yamuna Power Limited.

“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 court said, as reported by the Hindustan Times.

Ghanshyam Chand Sharma was appointed a daily rated mazdoor on July 9, 1968. From December 22, 1971, his services as a peon were regularized. On July 7, 1990, he resigned from the company. BSES Yamuna denied Sharma pension for not completing 20 years of service and forfeiting his past services by resigning. Ghanshyam appealed to the Delhi High Court against BSES and the court ruled in favour of Ghanshyam. BSES moved to the apex court, which observed that Ghanshyam didn’t complete 20 years of service.