CAT - Delhi

Delayed payments of retiral dues liable for interest at GPF rates, compounded.

SUNITA vs MUNICIPAL CORPORATION OF DELHI

CAT - DelhiJUDGMENT: February 20, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicants, Swatchhta Karamcharis, filed an Original Application seeking relief regarding arrears of salary, bonus, wages, and allowances

Source reference: p.1-2, p.3

Applicant No. 3, Smt. Rajesh W/o Sh. Mukesh, instructed her counsel to withdraw her claim from the OA

Source reference: p.3

The respondents stated that part payment had already been made to the remaining applicants

Source reference: p.3

The respondents further submitted a list of remaining arrears to be paid to the remaining applicants

Source reference: p.3-4

The counsel for the applicants expressed satisfaction with the respondents' actions and their promise to release future payments

Source reference: p.5
02

Issues

Whether the Original Application should be disposed of with respect to Applicant No. 3, Smt. Rajesh W/o Sh. Mukesh, due to her instruction to withdraw her claim

Source reference: p.3

Whether the remaining applicants are entitled to the remaining payments of arrears along with interest on delayed payment of retiral dues

Source reference: p.3, p.5
03

Law Applied

The court primarily applied the principle established in O.A. No. 2821/2023, titled *Rajbir Singh v. Municipal Corporation of Delhi Ors.*, decided by the Full Bench of this Tribunal on 30.10.2025

Source reference: p.5

This precedent dictates that on delayed payment of GPF, pension, Gratuity, etc., interest is payable at the rate of GPF for the relevant years, calculated on a compound interest basis

Source reference: p.5
04

Reasoning

The court noted that Applicant No. 3, Smt. Rajesh, had withdrawn her claim, leading to the disposal of the OA with respect to her

Source reference: p.3

For the remaining applicants, while acknowledging the respondents' submission of due amounts and their commitment to make payments, the court found the facts identical to *Rajbir Singh (Supra)*

Source reference: p.3-4, p.5

Therefore, the established principle regarding interest on delayed payments of retiral dues, including GPF, pension, and gratuity, was applied to ensure the remaining applicants receive not only the outstanding amounts but also appropriate interest as per the precedent

Source reference: p.5-6
05

Holding

The OA was disposed of.

The claim of Applicant No. 3, Smt. Rajesh W/o Sh. Mukesh, was disposed of as withdrawn

Source reference: p.3

With regard to the remaining applicants, the respondents were directed to release the remaining payments along with interest on the delayed payment of retiral dues, as per the direction given in *Rajbir Singh (Supra)*, by passing a reasoned and speaking order within eight weeks from the receipt of the certified copy of the order

Source reference: p.6-7

The court clarified that it did not express any opinion regarding the merits of the case

Source reference: p.7

No costs were awarded

Source reference: p.7
CAT - Delhi

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SUNITAvsMUNICIPAL CORPORATION OF DELHI

CAT - Delhi · February 20, 2026

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