Скачать или смотреть Supreme Court Order | Ashok Kumar Dabas vs DTC | Employee Rights After Resignation

In this video, we break down a major Supreme Court judgment on resignation, pension eligibility, gratuity, and employee rights. The case of Ashok Kumar Dabas vs Delhi Transport Corporation (DTC) has clarified one of the most misunderstood topics among government and PSU employees — Does an employee get pension after resignation?
This decision has far-reaching implications for employees working in government departments, PSUs, corporations, boards, and semi-government institutions.


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🔍 Full Case Breakdown: Ashok Kumar Dabas vs Delhi Transport Corporation | Supreme Court (2025)

Ashok Kumar Dabas joined Delhi Transport Corporation (DTC) as a conductor in 1985. After nearly 29 years of service, he resigned in August 2014 due to family difficulties.
His resignation was accepted, but when he later attempted to withdraw it, DTC refused.

He demanded:

Pension

Gratuity

Leave Encashment


DTC denied all benefits except PF.
The Tribunal dismissed his case.
The High Court dismissed his appeal.
After his death, his legal heirs approached the Supreme Court.

On 9 December 2025, a bench of Justice Rajesh Bindal and Justice Manmohan delivered the final verdict.


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⚖️ Supreme Court’s Key Findings on Resignation & Pension

1️⃣ Pension Not Payable After Resignation

The Court relied on Rule 26 of the CCS Pension Rules, 1972, which states:

“Resignation from service results in forfeiture of past service.”



Because resignation wipes out the entire qualifying service, no pension can be granted, even if the employee has:

Completed 20 years

Completed 30 years

Served long enough to qualify for voluntary retirement


The Court emphasized the difference between:

Resignation → No pension

Voluntary Retirement (Rule 48 & 48-A) → Pension allowed if proper notice is given and the rule is followed


Since Ashok Dabas resigned and did NOT take voluntary retirement, he lost pension eligibility completely.

The Court also relied on the precedent BSES Yamuna Power Ltd. vs Ghanshyam Chand Sharma, reinforcing this distinction.


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2️⃣ Gratuity Must Be Paid

Under Section 4 of the Payment of Gratuity Act, 1972, an employee with 5+ years of service is entitled to gratuity even after resignation.

DTC was not exempt from the Gratuity Act, so the Court ordered:

✅ Full gratuity must be paid
✅ Along with 6% interest from the date of resignation


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3️⃣ Leave Encashment Allowed

DTC admitted this benefit was payable.
The Supreme Court directed that it must be released without further delay.


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📌 Final Supreme Court Order

❌ No Pension (due to resignation and forfeiture of service)

✔️ Gratuity payable under Gratuity Act, 1972

✔️ Leave Encashment payable

✔️ 6% interest on all dues

✔️ Payment to be completed within 6 weeks



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📢 Why This Case Matters (Impact on Employees)

This judgment is a crucial reminder for all government and PSU employees:

Resignation is not Voluntary Retirement

Resignation cancels the entire service record for pension purposes

Always choose Voluntary Retirement (VRS) if you want pension

Gratuity and Leave Encashment remain protected under the law


This decision affects lakhs of employees across India working in:

PSUs

Transport corporations

Municipal bodies

State government undertakings

Central government departments



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