Delayed payment of retirement benefits mandates interest at GPF rate.

The applicant, Bhoolay Ram Sharma, joined the respondents as a Malaria Inspector and superannuated on January 31, 2023.

Despite his retirement, the respondents had not released several retiral benefits due to him, as detailed in Annexure A-1.

The applicant provided a "due and drawn statement" of these benefits, indicating that Retirement Gratuity (Rs. 9,63,171/-) and CVP (Rs. 8,71,855/-) were pending, while Leave Encashment (Rs. 5,83,740/-) was received on February 3, 2023, and GPF (Rs. 25,54,170/-) on March 22, 2023.

Other pending dues included Revised Pay difference of 7 CPC arrear, DA from 2017 onwards, Bonus for 2019-20, 20-21 and 21-22, Pay difference from 11.01.2016 to 30.11.2016, Pay difference (increment arrear) from 2006 to 2015, Pay difference 2nd MACP from 01.01.2006 to Feb 2013, PCA arrear, ACP/MACP (Increment arrears) from 01.01.2006 to 30.11.2016, and other dues of pay and allowances since 2013.

The respondents admitted that, except for leave encashment and GPF, the other retiral benefits shown by the applicant had not been paid.

The learned counsel for the respondents also stated that a related order in OA No. 2821/2023, which established interest payment rules, was the subject of WP (C) No. 19558/2025, pending before the Hon'ble High Court, with the order reserved.

Whether the respondents should be directed to release the outstanding retirement benefits to the applicant?

Whether the respondents should be directed to grant interest at 18% or as deemed fit on all delayed payments of retirement benefits, including pension, from the due date until the actual date of payment?

The court primarily applied the principle established in the order dated October 30, 2025, by the Hon’ble Full Bench of the Central Administrative Tribunal in OA No. 2821/2023, titled Rajbir Singh Vs. MCD and Ors.

This precedent held that on the delayed payment of GPF, Pension, Gratuity, etc., interest would be payable at the GPF rate for the relevant years, calculated on a compound interest basis.

This rule applies to delayed payments of GPF, pension, and gratuity.

The Tribunal noted that the respondents admitted to the various pending retiral dues, except for leave encashment and GPF, which had been paid with considerable delay.

Given this admission, the primary matter for decision was the payment of interest for the delay.

The Tribunal found the applicant's case to be squarely covered by the findings in Rajbir Singh Vs. MCD and Ors. (OA No. 2821/2023), which mandated interest payments on delayed retiral benefits.

The respondents' counsel raised no objection to contentions made by the applicant's counsel but indicated that the Rajbir Singh order was currently under scrutiny by the Hon'ble High Court in WP (C) No. 19558/2025.

Despite this, the Tribunal found no reason to deviate from the Full Bench's judgment.

Therefore, the Tribunal directed the release of benefits and the application of interest as per the precedent.

The Tribunal directed the respondents to release all admitted retiral benefits as expeditiously as possible, within three months from the date of receipt of a certified copy of the order.

Furthermore, the respondents were directed to grant interest on these delayed payments, as ordered in OA No. 2821/2023.

No costs were imposed.

The final order in this case will be subject to the final observations of the Hon'ble High Court regarding WP (C) No. 19558/2025.