Case Note & Summary
The appellant, Karan Singh, was a conductor with the Delhi Transport Corporation (DTC). He was appointed as a monthly rate conductor w.e.f. 27th November, 1983 after undergoing training from 15th March to 26th May, 1983. DTC introduced a pension scheme on 27th November, 1992, which was compulsory for new employees and deemed existing employees who did not opt out to have opted for pension. Subsequently, a Voluntary Retirement Scheme (VRS) was notified on 3rd March, 1993, requiring an employee to have completed 10 years of service or 40 years of age. The appellant, being over 40, applied for voluntary retirement, which was allowed on 30th April, 1993, but pension was not granted. The appellant claimed he had completed 10 years 1 month 19 days of qualifying service, including training and retainer crew period. DTC computed his service as 9 years 1 month 25 days, and even adding training, it was 9 years 4 months 6 days, short of 10 years. The Central Administrative Tribunal allowed his claim, but the High Court of Delhi set aside that order. The Supreme Court considered the issue of whether the appellant had 10 years of qualifying service. The Court noted that the training period of two months could be counted under Rule 22 of the Central Civil Services Pension Rules, 1972, but even then the total was 9 years 4 months 6 days. Additionally, the appellant had 98 days of leave without pay, which, following the three-judge bench decision in DTC v. Balwan Singh, must be excluded from pensionable service under Rule 21. Thus, the appellant failed to meet the minimum qualifying service of 10 years. The Supreme Court dismissed the appeal, upholding the High Court's judgment.
Headnote
A) Service Law - Pension - Qualifying Service - Minimum 10 years required for pension eligibility - Appellant's total service including training period computed as 9 years 4 months 6 days, falling short of 10 years - Held that appellant not entitled to pension (Paras 10-12). B) Service Law - Leave Without Pay - Exclusion from Pensionable Service - Rule 21 of Central Civil Services Pension Rules, 1972 - Period of leave for which salary is not payable must be excluded from qualifying service - Three Judge Bench decision in DTC v. Balwan Singh applied - Held that 98 days leave without pay cannot be counted (Paras 11-12). C) Service Law - Pension Scheme - Deemed Option - Office Order dated 27.11.1992 - Existing employees who did not submit option deemed to have opted for pension scheme - Appellant's silence treated as deemed option - However, eligibility depends on meeting qualifying service requirement (Paras 4, 12).
Issue of Consideration
Whether the appellant had completed 10 years of qualifying service to be entitled to pension under the pension scheme introduced by DTC vide Office Order dated 27th November, 1992 read with VRS, 1993.
Final Decision
The Supreme Court dismissed the appeal, holding that the appellant did not have the minimum qualifying service of 10 years for pension. The period of leave without pay was excluded as per Rule 21 of the Central Civil Services Pension Rules, 1972, following the decision in DTC v. Balwan Singh.
Law Points
- Qualifying service for pension
- Leave without pay exclusion
- Deemed option for pension scheme
- Voluntary retirement scheme
- Central Civil Services Pension Rules
- 1972



