Interest on delayed retiral benefits is payable at GPF rates on a compounded basis.

The applicant, a retired Food Safety Officer, retired from service on 31.07.2013

Following his retirement, the respondents eventually released his retiral dues, including MACP-related pay differences, gratuity, pension arrears from August 2013, and leave encashment differences

However, while the principal amounts were paid, the respondents failed to provide interest for the inordinate delay in disbursement

The applicant submitted representations on 14.08.2025 and 10.09.2025 seeking interest, but these were not considered by the authorities

Consequently, the applicant filed this Original Application (O.A.) under Section 19 of the Administrative Tribunals Act, 1985, seeking interest at GPF rates compounded annually and penal interest at 12% p.a.

1. Whether the applicant is entitled to interest on the delayed disbursement of retiral and pensionary dues

2. Whether the interest on such delayed payments should be calculated at GPF rates and compounded annually in line with recent judicial precedents

The Tribunal applied Section 19 of the Administrative Tribunals Act, 1985, and Rule 68 of the CCS (Pension) Rules, 1972 (as well as Rule 65 of the 2021 Notification), which stipulates that interest on delayed pension or gratuity shall be paid at the rate applicable to General Provident Fund (GPF) amounts

The court primarily relied on the Full Bench decision of the Tribunal in Rajbir Singh vs. MCD & Ors. (O.A. No. 2821/2023, decided on 30.10.2025), which established that interest on delayed retiral dues is payable at GPF rates and must be calculated on a compound interest basis

The Tribunal observed that the delay in payment of retiral benefits was undisputed, as the respondents had released the principal amounts years after the applicant's retirement in 2013 without accompanying interest

The court analyzed the findings of the Full Bench in Rajbir Singh, which clarified that since retiral dues (Pension, Gratuity, GPF) are statutory rights, any delay not attributable to the employee must be compensated with interest at the GPF rate for the relevant years

The Tribunal rejected the potential applicability of D. Khosla and Company vs. Union of India, noting that service matters regarding statutory dues are governed by specific pension rules rather than contractual law

Although the respondents noted that the Rajbir Singh judgment is currently under challenge before the Delhi High Court in W.P. (C) No. 19558/2025, the Tribunal held that the applicant remains entitled to the benefit of the existing precedent subject to the final outcome of the said writ petition

The respondents are ordered to comply within eight weeks from the receipt of the certified copy of the order

This direction is specifically made subject to the final outcome of the Writ Petition (W.P.(C) No. 19558/2025) pending before the Hon’ble High Court of Delhi

No order as to costs was made