Facts
The applicant, Sahensar Pal, a retired Mali of MCD, aged 62 years, filed an Original Application seeking the release of various pension-cum-retirement benefits, including Gratuity and Commuted Pension benefits, 7th CPC benefits, MACP Scheme benefits, DA Arrears, Bonus, Non-matric allowance, and Uniform Allowance, along with annually compounded interest at 12%
Source reference: p.2The respondents, MCD, acknowledged that while Leave Encashment (Rs. 5,33,320), GIS (Rs. 10,060), and GPF (Rs. 8,54,623) had been paid, Retirement Gratuity (Rs. 8,53,312) and Commutation Pension (Rs. 7,82,671) were still unpaid.
Source reference: p.2-3The delay was attributed to a financial crisis in the Municipal Corporation of Delhi
Source reference: p.2-3Issues
1. Whether the respondents should be directed to release all pending pension-cum-retirement benefits to the applicant, including Gratuity and Commuted Pension benefits
Source reference: p.22. Whether the applicant is entitled to 7th CPC benefits, MACP Scheme benefits, DA Arrears, Bonus, Non-matric allowance, and Uniform Allowance
Source reference: p.23. Whether the applicant is entitled to interest at 12% annually compounded on the delayed payment of pension-cum-retirement and other benefits
Source reference: p.2Law Applied
The Tribunal applied the principle established in `O.A. No. 2821/2023, Rajbir Singh vs. MCD & Ors.`, decided on 30.10.2025, which held that interest is payable on delayed payment of GPF, pension, and gratuity at the GPF rate for the relevant years, calculated on a compound interest basis
Source reference: p.3-4This precedent clarified that such interest is mandated by Rule 65 (though not explicitly stated which Rule 65) and distinguished service matters from contractual agreements in cases like `D. Khosla and Company vs. Union of India`
Source reference: p.4The Tribunal also noted that the due date for grant of interest is the date of superannuation, as it is a well-settled legal principle
Source reference: p.4Reasoning
The court noted that the respondents' status report confirmed the non-payment of Retirement Gratuity and Commutation Pension to the applicant, acknowledging the delay due to financial constraints
Source reference: p.3The applicant's counsel referred to the decision in `Rajbir Singh vs. MCD & Ors.`, which explicitly mandates interest on delayed payment of GPF, pension, and gratuity, calculated on a compound interest basis at the GPF rate
Source reference: p.3-4The Tribunal found this precedent directly applicable, deeming the due date for such interest to be the date of superannuation
Source reference: p.4This application effectively addressed the applicant's prayer for interest and upheld the principle of timely disbursement of retirement benefits
Source reference: p.2, p.4Holding
The O.A. was disposed of, directing the respondents to release all admissible payments, if not already released, within two months from the date of receipt of the certified copy of the Order
The applicant was held entitled to interest in terms of the decision in `O.A. No. 2821/2023, Rajbir Singh (supra)`, subject to the final outcome of proceedings pending before the Hon'ble High Court of Delhi in that matter
Source reference: p.4-5There was no order as to costs
Source reference: p.5Original Court PDF
Sahensar Pal v. MCD & Anr., O.A. No.3928/2023
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