SC:Denial of voluntary retirement doesn’t allay consequences of resigning

The Hon’ble Supreme Court, on 5th December 2019, in the matter of BSES Yamuna Power Ltd. v. Sh. Ghanshyam Chand Sharma & Anr. pronounced that a decision to resign is materially distinct from a decision to seek voluntary retirement. The two may not be substituted for each other based on the length of an employee’s tenure. The denial of voluntary retirement does not mitigate the legal consequences that flow from resignation.

The Hon’ble Supreme Court observed that:

The decision to resign is materially distinct from a decision to seek voluntary retirement. The decision to resign results in the legal consequences that flow from a resignation under the applicable provisions. These consequences are distinct from the consequences flowing from voluntary retirement and the two may not be substituted for each other based on the length of an employee’s tenure. (Para 11)

If the court were to re-classify a case of resignation as a case of voluntary retirement, this would obfuscate the distinction between the concepts of resignation and voluntary retirement. (Para 12)

The denial of voluntary retirement does not mitigate the legal consequences that flow from resignation. (Para 14)

Copy of judgement: Judgement_05th-Dec-2019

-Adv. Tushar Kaushik

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