SC Denies Pension for Voluntary Abandonment of Service

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  • Last Updated on 2 May, 2026

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pension voluntary abandonment

Case Details: K.G. Seshadri vs. Trustees of State Bank Of India [2026] 185 taxmann.com 352 (SC)[08-04-2026]

Judiciary and Counsel Details

  • Prashant Kumar Mishra & N.V. Anjaria, JJ.
  • Ms N S Nappinai, Sr. Adv., V. Balaji, B. Dhananjay, Atul Sharma, Vinod K. Nair, C. Kannan, Md. Nizamuddin, Anuraj Mishra, Advs. & Rakesh K. Sharma, AOR for the Petitioner
  • Sanjay Kapur, AOR, Surya Prakash, Ms Shubhra Kapur, Ms Mahima Kapur, Ms Mansi Kapur, Ms Santha Smruthi, Advs. for the Respondent.

Facts of the Case

In the instant case, the appellant was appointed as a clerk in the respondent bank. He left for abroad and, upon returning, sought to rejoin service, which the respondent bank declined.

On account of his unauthorised absence, the bank issued notices and, finding his response unsatisfactory, treated his services as voluntarily abandoned. The appellant thereafter filed a petition before the Labour Court seeking computation of pension.

The Labour Court dismissed the claim for lack of jurisdiction, holding that there was no pre-existing right under the pension rules. The High Court also dismissed the writ appeal filed by the appellant.

Supreme Court Held

On appeal, the Supreme Court observed that the appellant was never granted voluntary retirement, and his services were instead treated as voluntarily abandoned. Accordingly, his case did not fall within Rule 22(i)(c).

Further, as he had neither attained the age of 50 years nor completed 20 years of service at the relevant time, he was also ineligible under Rule 22(i)(a).

Therefore, since the appellant’s case did not fall under any of the applicable provisions, the Supreme Court held that the appeal was liable to be dismissed.

List of Cases Reviewed

  • Order of High Court of Judicature at Madras in W.A No. 1065 of 2022 dated 27.04.2022 (para 32) affirmed

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied