Facts
The applicant, a retired Mali from the Horticulture Department of the MCD, retired on July 31, 2022
Source reference: p.2, para 2He approached the Tribunal seeking a direction for the release of all pension-cum-retirement benefits, including GPF, Gratuity, Commutation, Bonus, and MACP arrears, along with 18% interest per annum due to the delay in disbursement
Source reference: p.2, para 1The respondents filed an affidavit detailing that while some payments (GPF, Leave Encashment, and parts of DCRG) had been made between 2022 and 2025, several items (GIS, Bonus, Uniform Allowance, and 3rd MACP arrears) remained unpaid despite bills being passed
Source reference: p.2-3, para 2The respondents attributed the delay to financial constraints rather than deliberate intent
Source reference: p.3, para 3Issues
Whether the applicant is entitled to the immediate release of pending retiral benefits and interest on payments delayed beyond the date of superannuation
Source reference: p.2, para 1; p.3, para 4Law Applied
The Tribunal primarily relied on the Full Bench judgment in Rajbir Singh vs. MCD & Ors. (O.A. No. 2821/2023)
Source reference: p.3, para 4This precedent establishes that interest is mandatory on the delayed payment of GPF, pension, and gratuity
Source reference: p.3, para 4The court ruled that such interest must be calculated at the prevailing GPF rate for the relevant years on a compound interest basis
Source reference: p.3, para 4, quoting para 19 of Rajbir SinghReasoning
The Tribunal noted that the applicant retired in July 2022, yet several terminal benefits were only partially paid as late as August 2025, and others remained unpaid by the date of the hearing in April 2026
Source reference: p.2-3, para 2Although the respondents cited financial constraints as the reason for the delay, the Tribunal held that such constraints do not absolve the state from its liability to pay interest on delayed statutory retiral dues
Source reference: p.3-4, para 4-5By applying the ratio in Rajbir Singh, the Tribunal concluded that the applicant has a settled legal right to receive compound interest at GPF rates for the period of delay in receiving his pensionary and other terminal benefits
Source reference: p.4, para 5Holding
The Tribunal disposed of the Original Application by directing the respondents to release all pending amounts (GIS, Bonus, Uniform Allowance, and 3rd MACP arrears)
Furthermore, the respondents were ordered to pay interest on all delayed payments in accordance with the principles laid down in Rajbir Singh (supra)
Source reference: p.4, para 5The directions must be complied with within two months from the date of receipt of the certified copy of the order
Source reference: p.4, para 5No order as to costs was made
Source reference: p.4, para 6Original Court PDF
Ram BhawanvsMUNICIPAL CORPORATION OF DELHI
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