After Some MCD Retirement Dues Came 4 Years Late, CAT Says Interest Is Due and Orders MACP, Bonus Claims Considered

The applicant, a Municipal Corporation of Delhi employee, superannuated on 30 June 2020.

By the time the application was heard, the respondents had paid several terminal benefits, including commuted pension, gratuity, leave encashment, GPF, GIS and 7th CPC arrears; some payments were made in 2024.

The applicant’s counsel stated that the remaining claims concerned MACP arrears and bonus.

The applicant also sought interest on delayed retirement benefits.

The application was brought under Section 19 of the Administrative Tribunals Act, 1985, which provides for applications to the Tribunal concerning service matters.

The Tribunal relied on the Full Bench decision in Rajbir Singh v. MCD & Ors., O.A. No. 2821/2023, decided on 30 October 2025, as the basis for the applicant’s entitlement to arrears and interest on delayed payments; the judgment does not set out the Full Bench’s specific test or prescribe a rate of interest.

Since the applicant’s counsel accepted that most terminal benefits had been paid and identified MACP arrears and bonus as the surviving claims, the Tribunal directed the respondents to consider those claims under the applicable rules.

It also noted that the applicant had retired in 2020 but certain benefits were released only in 2024, and applied the Full Bench’s ruling to recognise entitlement to arrears and interest on delayed payments.

It further held that the applicant was entitled to arrears and interest on delayed payments in terms of Rajbir Singh.

Pending miscellaneous applications were also disposed of, with no order as to costs.