Supreme Court Upholds Exclusion of Unauthorised Absence from Qualifying Service for Pension in DTC VRS Cases. The court held that period of absence without authorisation cannot be counted towards qualifying service for pension under CCS (Pension) Rules, 1972, even if employee availed VRS.

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Case Note & Summary

The Supreme Court dismissed the appeal filed by the Delhi Transport Corporation (DTC) against the respondents, ex-employees who had availed of the Voluntary Retirement Scheme (VRS). The respondents were denied pension on the ground that periods of unauthorised absence were excluded from qualifying service, resulting in less than 10 years of qualifying service. The court examined the reference order which questioned the correctness of the earlier decision in DTC v. Lillu Ram, which had upheld such exclusion. The court analysed the relevant provisions of the Central Civil Services (Pension) Rules, 1972, particularly Rules 3(1)(q), 21, 27, 28, and 49(1), as well as FR 17-A of the Fundamental Rules and Government of India decisions. It held that the definition of 'qualifying service' under Rule 3(1)(q) means service rendered while on duty or otherwise, and unauthorised absence does not constitute such service. Rule 21 provides that only leave for which leave salary is payable counts as qualifying service, with limited exceptions. The court rejected the argument that Rules 27 and 28 regarding interruption in service or condonation applied, as the absence was not authorised leave. The court also noted that the Government of India decision requiring specific entries in service records for non-qualifying periods did not apply because the absence was unauthorised, not extraordinary leave. The court concluded that the view in Lillu Ram was correct and did not require reconsideration. Consequently, the appeal was dismissed, and the respondents were held not entitled to pension due to insufficient qualifying service.

Headnote

A) Service Law - Pension - Qualifying Service - Exclusion of Unauthorised Absence - Central Civil Services (Pension) Rules, 1972, Rules 3(1)(q), 21, 27, 28, 49(1) - The period of absence without authorisation cannot be counted as qualifying service for pension, as 'qualifying service' means service rendered while on duty or otherwise, and unauthorised absence does not fall within that definition. The court upheld the view in DTC v. Lillu Ram that such exclusion is valid. (Paras 6-7, 16-17)

B) Service Law - Voluntary Retirement Scheme - Eligibility for Pension - Central Civil Services (Pension) Rules, 1972, Rule 49(1) - Completion of 10 years of service for VRS eligibility does not automatically mean that the period of unauthorised absence is counted for pension; the qualifying service for pension is determined separately under the Pension Rules. (Paras 7, 16)

C) Service Law - Extraordinary Leave - Entries in Service Records - Central Civil Services (Pension) Rules, 1972, Rule 21, Government of India Decision dated 28.2.1976 - A definite entry in the service record regarding non-qualifying periods is required to be made, and if not made, spells of extraordinary leave may be deemed qualifying service. However, in the present case, the absence was unauthorised and not sanctioned leave, so the requirement of entry does not apply. (Paras 13-14, 17)

D) Service Law - Interruption in Service - Condonation - Central Civil Services (Pension) Rules, 1972, Rules 27, 28 - Interruption in service entails forfeiture of past service unless falling within exceptions, and unauthorised absence in continuation of authorised leave may be condoned only if the post is not filled substantively. The court found that the respondents' absence was not covered by these exceptions. (Paras 10-11, 17)

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Issue of Consideration

Whether the period of unauthorised absence of employees, who availed Voluntary Retirement Scheme, should be excluded from qualifying service for pension under the Central Civil Services (Pension) Rules, 1972, and whether the view in DTC v. Lillu Ram requires reconsideration.

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Final Decision

The Supreme Court dismissed the appeal, holding that the view in DTC v. Lillu Ram is correct and does not require reconsideration. The period of unauthorised absence cannot be counted as qualifying service for pension, and the respondents are not entitled to pension.

Law Points

  • Qualifying service for pension excludes unauthorised absence
  • Rule 21 CCS (Pension) Rules
  • 1972
  • Rule 27 CCS (Pension) Rules
  • Rule 28 CCS (Pension) Rules
  • FR 17-A Fundamental Rules
  • Government of India decision on entries for extraordinary leave
  • SR 200 Supplementary Rules
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Case Details

2019 LawText (SC) (2) 12

Civil Appeal No.7159 of 2014

2019-02-26

Sanjay Kishan Kaul, J.

Delhi Transport Corporation

Balwan Singh & Ors.

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Nature of Litigation

Civil appeal against denial of pension to ex-employees who availed VRS, on account of exclusion of unauthorised absence from qualifying service.

Remedy Sought

Respondents sought pensionary benefits after availing VRS, claiming that periods of absence should be counted as qualifying service.

Filing Reason

The appellant DTC challenged the Delhi High Court's decision in favour of employees, and the matter was referred to a larger Bench due to disagreement with the earlier view in DTC v. Lillu Ram.

Previous Decisions

The Delhi High Court had opined in favour of employees; SLPs were dismissed leaving the question of law open. The issue was then examined in DTC v. Lillu Ram, which upheld exclusion of unauthorised absence. The present reference sought reconsideration of that view.

Issues

Whether the period of unauthorised absence should be excluded from qualifying service for pension under the CCS (Pension) Rules, 1972. Whether the view in DTC v. Lillu Ram requires reconsideration.

Submissions/Arguments

Appellant argued that under Rule 21, only leave for which leave salary is payable counts as qualifying service, and unauthorised absence does not qualify. Rules 27 and 28 deal with interruption and condonation, not applicable here. Respondents argued that Government of India decision requires specific entry in service records for non-qualifying periods, and absence of such entry means the period should be deemed qualifying. Also, VRS eligibility on completion of 10 years should imply counting of all service.

Ratio Decidendi

The definition of 'qualifying service' under Rule 3(1)(q) of the CCS (Pension) Rules, 1972 means service rendered while on duty or otherwise, and unauthorised absence does not constitute such service. Rule 21 provides that only leave for which leave salary is payable counts as qualifying service, with limited exceptions. The absence in question was unauthorised and not covered by any exception, hence cannot be counted for pension.

Judgment Excerpts

The definition of 'Qualifying Service' means service rendered while on duty or otherwise which shall be taken into account for the purpose of pensions and gratuities admissible under these rules. Under Rule 21 of the CCS (Pension) Rules, 1972, extraordinary leave granted on medical certificate qualifies for pension. The Appointing Authority may, at the time of granting extraordinary leave, also allow the period of such leave to count as qualifying for pension if the leave is granted to a Government servant due to his inability to join or rejoin duty on account of civil commotion, or for prosecuting higher technical and scientific studies.

Procedural History

The respondents, ex-employees of DTC, availed VRS but were denied pension due to exclusion of unauthorised absence from qualifying service. The Delhi High Court ruled in their favour. SLPs were dismissed leaving the question open. The issue was then examined in DTC v. Lillu Ram, which upheld the exclusion. A reference was made to a larger Bench due to disagreement with that view, leading to the present appeal.

Acts & Sections

  • Central Civil Services (Pension) Rules, 1972: 3(1)(q), 21, 27, 28, 49(1)
  • Fundamental Rules: FR 17-A
  • Supplementary Rules: SR 200
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