The Gauhati High Court has clarified that voluntary resignation leads to forfeiture of past service, denying pension and gratuity benefits. However, the court ensured that certain financial dues must still be processed.
Background of the Case
The case arose from a writ petition filed by Sandeep Bharali, a Junior Teacher at the Medical Institute, Jorhat. He had served for over ten years before submitting his resignation in January 2021, which was later accepted with retrospective effect.
After leaving service, the petitioner approached the court seeking release of pension, gratuity, leave encashment, arrears under the 7th Pay Commission, and withdrawal of funds from his New Pension Scheme (NPS) account.
His counsel argued that despite resignation, the length of service entitled him to these benefits and that denial on technical grounds was unfair.
Hearing the matter, Justice Budi Habung examined the provisions of Rule 62(a) of the Assam Services (Pension) Rules, 1969.
The court noted that the petitioner had voluntarily resigned and there was no evidence that he did so to take up another government post.
“The resignation… results in forfeiture of past service,” the bench observed, making it clear that such resignation cuts off eligibility for pensionary benefits.
On the claim for advance increments, the court held that such benefits cannot be granted after resignation, especially without prior approval.
At the same time, the court drew a distinction between pension claims and other dues. It observed that leave encashment and salary arrears, including 7th Pay Commission benefits, stand on a different footing and must be assessed independently under applicable rules.
Regarding the NPS account, the bench clarified that the accumulated amount belongs to the employee and can be withdrawn as per the scheme guidelines.
The High Court rejected the petitioner’s claims for pension, gratuity, and advance increments.
However, it directed the authorities to:
- Process and release earned leave encashment, if admissible
- Calculate and pay salary arrears, including 7th Pay Commission benefits up to the resignation date
- Facilitate withdrawal of the amount in the petitioner’s NPS account
The court further instructed that necessary formalities be completed within four weeks by the petitioner, and the authorities must finalize the process within four months thereafter.
The writ petition was thus partly allowed.
Case Details
Case Title: Sandeep Bharali vs State of Assam & Ors.
Case Number: WP(C)/2593/2023
Judge: Justice Budi Habung
Decision Date: 30 April 2026
