Interest is payable on delayed disbursement of retiral benefits and arrears of financial upgradation.

The applicant, a retired Director (VS) of the Municipal Corporation of Delhi (MCD), retired at age 64

He filed an Original Application under Section 19 of the Administrative Tribunals Act, 1985, seeking interest at 12% per annum on delayed retirement benefits (including gratuity, GPF, pension commutation, and arrears) and the release of pay differences arising from financial upgradations under the MACP and DACP schemes as per an order dated December 30, 2022

During proceedings, the applicant’s counsel acknowledged that while the principal retiral dues had been received, the interest for the delay and the MACP/DACP arrears remained unpaid

1. Whether the applicant is entitled to interest on the delayed payment of retiral dues and financial upgradation arrears

2. Whether such interest should be granted during the pendency of related litigation before the Hon’ble High Court of Delhi

The Tribunal primarily relied upon the Full Bench decision of the Central Administrative Tribunal dated October 30, 2025, in Rajbir Singh v. MCD & Anr. (OA No. 2821/2023), which established the entitlement to interest on delayed terminal benefits

This application is subject to the principles governing judicial discipline regarding matters sub judice before the Delhi High Court in W.P.(C) 401/2025 & CM APPL. 2064/2025

The court noted that the principal retiral dues had already been disbursed, narrowing the controversy to the payment of interest for the period of delay and the specific arrears related to MACP/DACP schemes

The Respondents expressed no objection to paying interest in accordance with the precedent set by the Full Bench in Rajbir Singh v. MCD & Anr.

To balance the applicant's right to timely payment with the legal uncertainty of the pending Writ Petition in the Delhi High Court, the Tribunal determined that the Respondents should proceed with the payment of interest upon the applicant furnishing an indemnity bond

This ensures the applicant is compensated for the delay while protecting the Respondents' interests should the High Court eventually rule otherwise

This payment is strictly subject to the final outcome of W.P.(C) 401/2025 pending before the Hon’ble Delhi High Court and requires the applicant to submit an indemnity bond

The Respondents were ordered to complete this exercise within eight weeks of receiving a certified copy of the order

No costs were awarded