Facts
The applicant, Sh. Rammehar, a retired Sanitary Guide Supervisor, filed an Original Application (OA) seeking payment of his entire service benefits.
Source reference: p.2An amount of Rs. 1,77,296 towards pay difference arrears for the period from 01.09.2008 to 31.08.2017 was yet to be paid to him.
Source reference: p.2The applicant retired on 31.08.2017.
Source reference: p.2During the proceedings, the departmental representative stated that the outstanding amount would be paid within two weeks and credited to the applicant's account.
Source reference: p.3Issues
Whether respondent No. 1 should be directed to pay the applicant's entire service benefits.
Source reference: p.2Whether suitable directions should be issued for the consequential benefits of the applicant.
Source reference: p.2Whether interest should be paid on the delayed payments of service benefits, including pay difference arrears, Gratuity, and leave encashment.
Source reference: p.3Law Applied
The Tribunal applied the principle established in its Full Bench decision dated 30.10.2025 in *Rajbir Singh Vs MCD Delhi & Ors.* (OA No. 2821/2023), which held that interest is payable on delayed payments of GPF, Pension, Gratuity, etc., at the rate of GPF for the relevant years.
Source reference: p.4The *Rajbir Singh* judgment clarified that interest on delayed payments of GPF amount is to be calculated on the basis of compound interest, which shall also be applicable to delayed payments of Pension and Gratuity etc.
Source reference: p.4Reasoning
The court noted that the outstanding pay difference arrears of Rs. 1,77,296 were still due to the applicant, which the respondents' counsel confirmed would be paid within two weeks.
Source reference: p.2, p.3While the immediate payment resolved the claim for the principal amount, the court recognized the significant delay in making this payment.
Source reference: p.3To address this delay and ensure justice for the applicant, the Tribunal invoked its precedent set in *Rajbir Singh Vs MCD Delhi & Ors.*
Source reference: p.4This precedent mandates the payment of compound interest on delayed service benefits, including pay arrears, Gratuity, and leave encashment, aligning with the GPF interest rate for the relevant years.
Source reference: p.4The court thus applied this principle to the present case due to the "extra delay" in the disbursement of the applicant's dues.
Source reference: p.3Holding
The OA was disposed of with a direction to the respondents to comply with the order by passing a reasoned and speaking order within six weeks from the receipt of the certified copy of the order.
The court directed the respondents to pay interest on each of the delayed payments, including Gratuity, leave encashment, and pay arrears, specifically on the Rs. 1,77,296 pay difference arrears for the period 01.09.2008 to 31.08.2017.
Source reference: p.3It was clarified that the interest on the delayed payments shall be calculated on a compound interest basis, in line with the decision in *Rajbir Singh Vs MCD Delhi & Ors.*
Source reference: p.4No costs were awarded.
Source reference: p.7Original Court PDF
RammeharvsMUNICIPAL CORPORATION OF DELHI
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