SC:Pending disciplinary proceeding accepting vol. retirement not obligatory

The Hon’ble Supreme Court, on 15th April 2020, in the matter of Rajasthan State Road Transport Corporation Ltd. & Ors. v. Smt. Mohani Devi & Anr. observed that pending disciplinary proceedings if an application for voluntary retirement is submitted there would be no absolute right seeking for acceptance.

The Hon’ble Supreme Court observed that:

Pending disciplinary proceedings if an application for voluntary retirement is submitted there would be no absolute right seeking for acceptance since the employer if keen on proceeding with the inquiry would be entitled not to consider the application for voluntary retirement. Hence there would be no obligation to accept. (Para 11)

Section 4(1)(b) of the Payment of Gratuity Act, 1972 provides that the gratuity shall be payable if the termination of employment is after 5 years of continuous service and such termination would include resignation as well. (Para 13)

Copy of judgement: Judgement-15-Apr-2020

-Adv. Tushar Kaushik

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