Delayed retirement benefits attract compound interest at GPF rates absent any employee-attributed delay.

The applicant, a retired Sanitary Field Worker (SFW) from the Karol Bagh Zone of the Municipal Corporation of Delhi (MCD), retired from service on June 30, 2020

Despite submitting representations on April 3, 2023, and November 6, 2023, the respondents failed to release several retirement benefits, including pension, gratuity, and leave encashment, in a timely manner

The respondents filed a status report on October 27, 2025, attributing the delay to COVID-19 procedural hurdles and a period of unauthorized absence by the applicant in 1992

While some payments (GPF, CVP, and 50% of Gratuity) were made belatedly between 2021 and 2025, certain arrears related to the 3rd MACP and 7th CPC remained partially or fully unpaid due to alleged financial constraints

1. Whether the applicant is entitled to the immediate release of remaining retirement benefits and pending salary-related arrears

2. Whether the applicant is entitled to interest on the delayed payment of retiral benefits in accordance with established precedents

The Tribunal relied upon the Full Bench decision of the Central Administrative Tribunal in Rajbir Singh vs. MCD & Ors. (O.A. No. 2821/2023), which held that interest on delayed retiral dues (GPF, Pension, Gratuity) not attributable to the employee must be paid at the applicable GPF rate for the relevant years, calculated on a compound interest basis

This principle is derived from Rule 65 of the Notification dated 20.12.2021 and Rule 68 of the CCS (Pension) Rules, 1972

The court further clarified that the Supreme Court's ruling in D. Khosla and Company vs. Union of India is inapplicable to service matters as it pertains to contractual compensation rather than statutory retiral benefits

The Tribunal noted that the respondents admitted to delays in payment, citing COVID-19 and administrative "procedural delays"

It was determined that no delay was attributable to the applicant

Applying the Rajbir Singh precedent, the Tribunal found the applicant entitled to interest at the GPF rate for the period of delay

the Tribunal observed that the Rajbir Singh decision is currently under challenge before the Delhi High Court in W.P. (C) No. 19558/2025, where judgment has been reserved

the Tribunal reasoned that while the applicant is entitled to the remaining principal amounts, the grant of interest must be made contingent upon the final outcome of the High Court proceedings to ensure judicial consistency

The respondents were ordered to pay interest on delayed payments in terms of the Rajbir Singh Full Bench decision, subject to the final outcome of Municipal Corporation of Delhi vs. Rajbir Singh currently pending before the Hon’ble High Court of Delhi

No order as to costs was passed