In Brief
The Delhi Transport Corporation challenged employees' pension eligibility under a Voluntary Retirement Scheme, arguing that leave without pay periods should not count towards the ten-year qualifying service requirement for pension. The Supreme Court held that leave without pay cannot be treated as unauthorised absence without explicit notice to the employee recorded in the service book. The Court emphasized that no adverse effect on an employee's pension rights could be permitted without proper notice and principles of Natural Justice. The Court distinguished an earlier Division Bench precedent and referred the matter for larger bench consideration, finding it unjust to deny pension to employees who retired relying on completed service."
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