CAT - Chennai

Technical resignation for contractual service followed by regularization preserves continuity of qualifying service for pensionary benefits.

G KUMAR vs Ut Of Pondicherry

CAT - ChennaiJUDGMENT: March 19, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicant was initially appointed as a regular Construction Helper on 04.06.2003 in the Electricity Department, Puducherry, and later promoted to Helper

Source reference: p. 2

In 2011, after obtaining a No Objection Certificate (NOC) from his parent department, he applied for the post of Trainee School Librarian (contractual) through the proper channel

Source reference: p. 2

Upon selection, he tendered a "technical resignation" and joined the new post on 04.01.2011

Source reference: p. 2, 10

His services were regularized on 10.09.2012

Source reference: p. 10

The respondents rejected his request for coverage under the Old Pension Scheme (OPS), placing him under the New Pension Scheme (NPS) on the grounds that his regular appointment in the Education Department occurred in 2012 and that his resignation from the regular post in the Electricity Department entailed forfeiture of past service

Source reference: p. 3-4
02

Issues

1. Whether a technical resignation tendered with prior permission to join a contractual post results in the forfeiture of past service for pensionary purposes.

Source reference: p. 3, 10

2. Whether service rendered on a contractual basis followed by regularization without interruption can be counted as qualifying service under the CCS (Pension) Rules.

Source reference: p. 6, 8
03

Law Applied

Rule 17 of the CCS (Pension) Rules, 1972, which allows a person initially engaged on contract and subsequently appointed to a substantive post without interruption to count the contractual service for pension, provided they exercise an option to refund or forego specific monetary benefits

Source reference: p. 7

Rule 26(2) of the CCS (Pension) Rules, 1972, which stipulates that resignation does not result in forfeiture of past service if the employee takes up another appointment with proper permission

Source reference: p. 3-4

the precedent set by the Hon’ble Supreme Court in S.D. Jayaprakash & Others v. Union of India (2025 INSC 594), which held that prior contractual service must be counted toward pensionary benefits upon regularization, subject to the conditions of Rule 17

Source reference: p. 8-9
04

Reasoning

The Tribunal observed that the applicant did not merely resign but tendered a "technical resignation" after obtaining a valid NOC to join the Education Department

Source reference: p. 2, 10

Consequently, under Rule 26(2), there was no forfeiture of past service or break in continuity

Source reference: p. 3, 10

The Tribunal further noted that although the intervening period (2011–2012) was contractual, Rule 17 specifically provides a mechanism to count such service if it is followed by regularization without interruption

Source reference: p. 10

The Tribunal highlighted that the respondents' initial rejection was based on an outdated understanding of the rules, as it preceded the Department of Pension and Pensioners’ Welfare (DoPPW) Office Memorandum dated 23.10.2024 and the Supreme Court’s 2025 judgment in S.D. Jayaprakash

Source reference: p. 6, 11

These recent legal developments clarify that contractual spells are not an absolute bar to OPS benefits if the regulatory conditions for regularization and technical resignation are met

Source reference: p. 11
05

Holding

The Tribunal held that the applicant’s claim required fresh consideration in light of current legal precedents and administrative clarifications

It set aside the impugned rejection order and remitted the matter back to the respondents. The respondents were directed to reconsider the applicant’s claim for inclusion in the Old Pension Scheme by applying Rule 17 and the principles laid down in S.D. Jayaprakash v. Union of India, and to pass a speaking order within two months. The OA was disposed of with no order as to costs

Source reference: p. 11
CAT - Chennai

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G KUMARvsUt Of Pondicherry

CAT - Chennai · March 19, 2026

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