Delayed retirement benefits accrue interest at GPF rates, including compound interest.

The applicant, Chander Kanta, aged 63 years and a former LHV, filed an Original Application seeking the release of her retirement benefits and monthly pension.

The respondents, Municipal Corporation of Delhi, in a short affidavit, admitted that several payments were due to the applicant and provided a list of disbursed and pending amounts.

Specifically, Gratuity was partially paid (Rs. 7,34,910 paid, Rs. 7,34,910 pending, with the pending amount stated as "Already paid on 21.07.2025") and Pay Difference Arrear of Rs. 33,600 was billed on 17.09.2019 but yet "to be paid".

The applicant's counsel referred to a previous decision in O.A. No. 2821/2023, Rajbir Singh vs. MCD & Ors., decided on 30.10.2025 by the Full Bench of the Tribunal, for the disposal of the present matter.

Whether the respondents should be directed to release the outstanding retirement benefits and monthly pension to the applicant.

Whether the applicant is entitled to interest on delayed payments of retirement benefits, including pension and gratuity, and if so, at what rate and how it should be calculated.

The court primarily applied the principle that interest is payable on delayed payments of GPF, pension, and gratuity at the rate of GPF for the relevant years, with the interest on delayed GPF calculated on a compound basis, which also applies to delayed pension and gratuity.

This rule was established in the Full Bench decision of O.A. No. 2821/2023, Rajbir Singh vs. MCD & Ors., decided on 30.10.2025.

The court further noted that Rule 65 specifically provides for interest on delayed payment at the GPF rate.

The Tribunal considered the admitted facts by the respondents that certain retirement benefits, particularly partial gratuity and pay difference arrears, were pending or were paid with significant delay.

The applicant sought similar relief as granted in Rajbir Singh vs. MCD & Ors.

The Tribunal adopted the ruling from Rajbir Singh, which clarified that interest on delayed payments of GPF, pension, and gratuity should be calculated at GPF rates for the relevant years, with compound interest applicable to GPF and by extension to pension and gratuity.

The Tribunal expressly rejected the applicability of D. Khosla and Company vs. Union of India, stating it pertained to contractual agreements, whereas Rule 65 specifically provides for interest on delayed service matters at the GPF rate.

Therefore, to ensure timely disbursement and compensate for delayed payments, the Tribunal applied the established precedent of interest at GPF rates.

The respondents were directed to ensure that all admissible payments, if not already released, be released within forty-five days from the date of receipt of the certified copy of this Order.

Failing this, the applicant shall be entitled to interest at GPF rates on delayed payments, consistent with the decision in O.A. No. 2821/2023, Rajbir Singh vs. MCD & Ors., subject to the final outcome of proceedings before the Hon'ble High Court of Delhi in that matter.

There was no order as to costs.