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)
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.
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



