Delayed payment of admissible dues warrants interest at GPF rates.

The applicant, SURENDER, a Cleaning Staff member, filed an Original Application seeking the release of various arrears, including difference of pay for 2003-2006, shortage of dearness allowance for 2019, 2020, and 2021 under the 7th CPC, and interest on these amounts

The respondents admitted that several payments were due to the applicant, totaling ₹ 4,40,993/-, for which bills had already been passed but payments were pending

The respondents further stated that payment would be made “with respect to availability of funds”

The applicant's counsel referred to the decision in O.A. No. 2821/2023, Rajbir Singh vs. MCD & Ors., decided on 30.10.2025 by the Full Bench of the Tribunal, which addressed interest on delayed payments

Whether the respondent department should be directed to release all pending arrears, including difference of pay and dearness allowance, to the applicant

Whether the applicant is entitled to interest on the delayed payment of these arrears

Whether the principles established in O.A. No. 2821/2023, Rajbir Singh vs. MCD & Ors., regarding interest on delayed payments, are applicable to the present case

The court applied the principles established in O.A. No. 2821/2023, Rajbir Singh vs. MCD & Ors., decided on 30.10.2025, which held that interest would be payable at GPF rates on delayed payments of GPF, pension, gratuity, and other similar amounts, with interest on delayed GPF calculated on a compound interest basis

This decision also clarified that Rule 65 specifically provides for interest on delayed payment based on the GPF rate

The court noted that the respondents admitted to the outstanding payments to the applicant and that bills for these amounts had been passed, but payments were awaiting fund availability

The applicant’s counsel specifically requested that the matter be disposed of in line with the decision in Rajbir Singh vs. MCD & Ors., which established the entitlement to interest at GPF rates for delayed payments

The court found this precedent directly relevant, directing the respondents to release all admissible payments within forty-five days from the date of receipt of the order.

Failure to do so would trigger interest at GPF rates on the delayed payments, in accordance with Rajbir Singh's decision, subject to the outcome of proceedings before the Hon’ble High Court of Delhi

If the payments are not released within this period, the applicant will be entitled to interest at the GPF rates on the delayed payments, as per the decision in O.A. No. 2821/2023, Rajbir Singh vs. MCD & Ors., subject to the final outcome of the proceedings pending before the Hon’ble High Court of Delhi in that matter