UCO Bank & Ors. v. S.K. Shrivastava

 Voluntary retirement becomes effective automatically on expiry of notice period unless refusal is communicated within that period; subsequent disciplinary action is invalid.

Facts

The respondent, an officer of UCO Bank, submitted a notice of voluntary retirement on 04.10.2010 under Regulation 29 of the Pension Regulations, 1995. During the notice period, a show-cause notice dated 11.11.2010 was issued regarding suspicious transactions. No formal refusal of voluntary retirement was communicated within the three-month notice period (ending 04.01.2011).

The respondent ceased working from 16.05.2011. A later communication dated 29.06.2011 purportedly rejected his request but was not served. Subsequently, a charge-sheet (05.03.2012) led to dismissal. The High Court held that voluntary retirement had taken effect and quashed the disciplinary action.

Issues Framed

(a) Whether voluntary retirement becomes effective automatically if not refused within the notice period under Regulation 29(2)?
(b) Whether issuance of a show-cause notice amounts to “pendency of disciplinary proceedings” under Regulation 20(3)(ii) of Service Regulations, 1979?
(c) Whether disciplinary proceedings initiated after such retirement are valid?

Court’s Reasoning

(a) Deemed acceptance under Regulation 29(2)
The Court held that the proviso mandates that if refusal is not communicated within the notice period, “the retirement shall become effective” automatically. A “positive act of refusal” is required; otherwise, retirement operates ipso facto (Paras 26–27, 30).

(b) Nature of show-cause notice
The Court held that the show-cause notice dated 11.11.2010 merely sought explanation and did not indicate “intention to institute disciplinary proceedings.” Thus, it did not trigger deemed pendency under Regulation 20(3)(ii) (Paras 36–37).

(c) Harmonious construction of regulations
The Court harmonised Regulation 29 (Pension Regulations) with Regulation 20(3) (Service Regulations), holding that while disciplinary pendency can justify refusal, such refusal must still be exercised within the notice period (Paras 34–35).

(d) Invalidity of subsequent proceedings
Since retirement became effective on 04.01.2011, the later charge-sheet (2012) and dismissal were without jurisdiction (Paras 43–45).

Held

Appeals dismissed. The respondent stood voluntarily retired w.e.f. expiry of the notice period and is entitled to all consequential post-retiral benefits.

Ratio

Failure of the employer to communicate refusal of voluntary retirement within the notice period under Regulation 29(2) results in automatic retirement, rendering subsequent disciplinary proceedings void (Para 43).

Case Details

Citation: 2026 INSC 328
Decided on: 7 April 2026
Case Title: UCO Bank & Ors. v. S.K. Shrivastava
Court: Supreme Court of India
Bench: J.K. Maheshwari, J.; Vijay Bishnoi, J.

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