Delayed payment of pension and retiral dues warrants compound interest at GPF rate.

The applicant, Vinod Kumar, aged 61 years, retired on 31.07.2024 and subsequently filed an Original Application (OA) under Section 19 of the Administrative Tribunals Act, 1985.

His application sought the payment of his pension from 01.08.2024, terminal benefits (including Gratuity, Commutation of Pension, General Provident Fund, and Leave Encashment), interest at 18% per annum on delayed payments, compensation for mental torture, and costs of litigation.

The respondents, through their counsel, expressed readiness to pay the pension within one month and the remaining terminal benefits within three months.

The applicant's counsel agreed to this timeline but pressed for the payment of interest on the delayed amounts.

1. Whether the respondents should be directed to pay the applicant's pension and other terminal benefits.

2. Whether the applicant is entitled to interest on the delayed payment of pension and other terminal benefits.

The Tribunal primarily considered the precedent established in the Full Bench judgment of the Central Administrative Tribunal in *Rajbir Singh v. MCD*, decided on 31.10.2025.

This judgment held that "on the delayed payment of GPF as well as Pension, Gratuity etc., interest would be payable at the rate of GPF for the relevant years" and clarified that "interest on the delayed payment of GPF amount is to be calculated on the basis of compound interest which shall also be applicable on delayed payment of Pension and Gratuity etc."

The Tribunal applied the principle from *Rajbir Singh v. MCD* (supra) to the present case to address the applicant's claim for interest on delayed payments.

Given that the respondents had already agreed to release the pension and other terminal benefits within stipulated timelines (one month for pension and three months for other benefits), the core of the analysis focused on the interest component.

Based on the precedent, which mandated compound interest at the GPF rate for delayed pension and gratuity payments, the Tribunal found the applicant was entitled to such interest from the date of retirement until actual payment.

This application directly addressed Issue 2 by confirming the legal entitlement to interest based on established jurisprudence.

(i) The respondents are directed to release the pension within one month and all other terminal benefits within three months from the date of the order, if not already released.

(ii) The respondents shall pay compound interest at the GPF rate on the delayed payment of pension and other retiral dues from the date of the applicant's retirement (01.08.2024) until the date of actual payment.

(iii) This entire exercise, including the payment of interest, must be completed within eight weeks from the date of receipt of a certified copy of the order.