The Supreme Court of India has held that an employee who resigns from service forfeits their past service and is consequently not entitled to pension under the Central Civil Services (Pension) Rules, 1972. However, the Court clarified that such resignation does not debar the employee from claiming gratuity under the Payment of Gratuity Act, 1972, provided they have rendered continuous service of not less than five years.

The Division Bench comprising Justice Rajesh Bindal and Justice Manmohan delivered the judgment in the case of Ashok Kumar Dabas (Dead Through Legal Heirs) v. Delhi Transport Corporation (2025 INSC 1404). The Court partly allowed the appeal, granting gratuity and leave encashment to the legal heirs of the deceased employee while upholding the denial of pension.

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