Delayed payment of GPF, pension, and gratuity attracts compound interest at applicable GPF rates.

The applicant, an ex-employee of the Municipal Corporation of Delhi (MCD), filed an Original Application (OA) seeking a direction to the respondents to release his retirement benefits and monthly pension

Additionally, the applicant sought interest at the rate of 18% per annum on all delayed payments of these benefits

The respondents, in their counter-affidavit, admitted that the retirement dues were payable to the applicant

The applicant further contended that his claim for interest is squarely covered by a prior Full Bench decision of the Tribunal

1. Whether the applicant is entitled to the immediate release of remaining retiral dues and monthly pension

2. Whether the applicant is entitled to interest on delayed payments of retiral benefits and the applicable rate/method for such calculation

The Tribunal primarily relied on the legal principle established by the Full Bench of the Central Administrative Tribunal in Rajbir Singh v. MCD and Ors. (OA No. 2821/2023), decided on 30.10.2025

That decision mandates that interest on delayed payments of GPF, Pension, and Gratuity is payable at the prevailing GPF rate for the relevant years

furthermore, it established that interest on delayed GPF amounts, as well as on Pension and Gratuity, must be calculated on a compound interest basis

The Tribunal noted that the respondents did not dispute the applicant’s entitlement to the principal retiral dues

Regarding the interest on delayed payments, the Tribunal found that the case was "squarely covered" by the findings in Rajbir Singh v. MCD and Ors.

Although the respondents pointed out that the Rajbir Singh judgment is currently being challenged in the Hon’ble High Court of Delhi via WP (C) No. 19558/2025 (where the order is reserved), they raised no formal objection to the applicant’s contentions

The Tribunal, therefore, proceeded to apply the Full Bench precedent while acknowledging that the finality of the payment would be subject to the High Court’s eventual observations in the pending Writ Petition

The interest is to be calculated in accordance with the Full Bench decision in Rajbir Singh v. MCD and Ors. (i.e., compound interest at the GPF rate)

The order is subject to the final outcome of WP (C) No. 19558/2025 pending before the Hon’ble High Court

No costs were awarded