New Delhi: The Supreme Court on Tuesday held that voluntary retirement is not merely an act of leaving service but a distinct right available to an employee upon completion of the prescribed years of service.

A bench of Justices J K Maheshwari and Vijay Bishnoi delivered the verdict while dismissing appeals filed by a bank against two 2019 orders of the Chhattisgarh High Court, which had directed grant of terminal benefits to an employee.

The top court observed that once an employee completes the qualifying service and submits a notice of voluntary retirement with a three-month period, the retirement would take effect automatically if no refusal is communicated within that time.

In the case, the employee had submitted a notice on October 4, 2010, which was to expire on January 4, 2011. However, the bank did not issue any refusal within the stipulated period, and the employee ceased working in May 2011.

The court noted that the subsequent rejection of the request and initiation of disciplinary proceedings after the notice period had no legal basis.

It ruled that in the absence of a timely refusal by the competent authority, the notice of voluntary retirement would take effect by operation of law, entitling the employee to post-retiral benefits.

The bench directed the bank to settle all dues within three months along with applicable interest.