Resignation under Assam Services (Pension) Rules, 1969 results in forfeiture of past service benefits; Court directs processing of earned leave and salary arrears
In a significant ruling, the Gauhati High Court has dismissed pension and gratuity claims of Sandeep Bharali, a former Junior Teacher at the Medical Institute, Jorhat, following his voluntary resignation. The court, presided over by Justice Mr. Budi Habung, upheld that under Rule 62(a) of the Assam Services (Pension) Rules, 1969, resignation leads to forfeiture of past service, thereby disentitling Bharali from pension and gratuity benefits.
The judgment, delivered on April 30, 2026, comes after Bharali filed a writ petition seeking pensionary benefits, earned leave encashment, and arrears of salary, including benefits under the 7th Pay Commission. Bharali argued that his resignation was a consequence of non-functional management at the institution, not intended to relinquish service benefits. However, the court found no evidence that his resignation was to take up another qualifying government appointment, a condition that might have preserved his service benefits.
Despite the forfeiture of pension and gratuity, the court recognized Bharali's entitlement to earned leave encashment and salary arrears until the date of resignation. Justice Habung directed the respondents, which include the Health & Family Welfare Department and Finance, to process these claims in accordance with applicable rules. Additionally, the court ordered the release of contributions in Bharali's Permanent Retirement Account (PRAN) under the New Defined Contribution Pension Scheme, 2009, acknowledging his right to withdraw the accumulated amount.
The court mandated that any procedural formalities required for the release of these benefits should be completed promptly, with the entire process expected to be finalized within four months from the order’s receipt. This ruling delineates the legal ramifications of voluntary resignation under Assam's pension rules and underscores the judiciary's role in enforcing statutory entitlements related to earned leave and salary arrears.
Bottom line:-
Resignation under Assam Services (Pension) Rules, 1969 leads to forfeiture of past service, denying pension and gratuity. However, earned leave encashment, arrears under the 7th Pay Commission, and withdrawal of New Defined Contribution Pension Scheme contributions are to be processed in accordance with the rules.
Statutory provision(s): Assam Services (Pension) Rules, 1969 Rule 62(a), New Defined Contribution Pension Scheme, 2009
Sandeep Bharali v. State of Assam, (Gauhati) : Law Finder Doc id # 2891190
