In Brief
An employee of Delhi Transport Corporation who resigned after nearly 30 years of service sought pension, gratuity, and leave encashment. The Supreme Court held that while resignation automatically forfeits pension rights under the Central Civil Services (Pension) Rules, 1972, it does not bar statutory gratuity under the Payment of Gratuity Act, 1972. The Court clarified that resignation and voluntary retirement are distinct concepts, and an employee cannot retrospectively convert resignation into voluntary retirement. Gratuity is payable after 5 years of service regardless of mode of separation. The legal heirs were awarded gratuity and leave encashment with 6% interest from the date of resignation, but pension claim was rejected.
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