CAT - ['Delhi']

Interest on delayed salary payment constitutes a valid claim even after the discharge of principle arrears.

VIJAY SHANKAR YADAV vs NORTHERN RAILWAY

CAT - ['Delhi']JUDGMENT: April 28, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicant, a Technician-III in Northern Railway, filed this Original Application (OA) seeking interest on delayed payment of salary arrears

Source reference: p. 2-3

Earlier, in OA No. 4473/2017 and MA No. 902/2024, the Tribunal had directed the respondents to release pay and allowances

Source reference: p. 2

The arrears were eventually paid in December 2025; however, the applicant sought interest for the period of delay

Source reference: p. 2

The Registry initially raised objections regarding the exhaustion of remedies and limitation

Source reference: p. 2
02

Issues

1. Whether the Registry's objections regarding limitation and non-exhaustion of remedies are sustainable in light of the recurring nature of the cause of action

Source reference: p. 2, para. 3-4

2. Whether the applicant is entitled to interest on the delayed payment of salary arrears

Source reference: p. 3, para. 5
03

Law Applied

The Tribunal applied Section 19 and Section 21 of the Administrative Tribunals Act, 1985, which govern the jurisdiction and the limitation periods for filing applications

Source reference: p. 2

It also applied principles of natural justice, which allow for a directive to the administration to consider a citizen's grievance via a reasoned representation before full judicial adjudication

Source reference: p. 3, para. 10
04

Reasoning

The Tribunal first addressed the Registry’s objections, ruling that because the payment of arrears occurred in December 2025, the claim for interest arose then, making the OA well within the limitation period prescribed under Section 21

Source reference: p. 2, para. 4

Regarding the substantive relief, the applicant requested liberty to submit a comprehensive representation to the respondents instead of immediate adjudication by the Tribunal

Source reference: p. 3, para. 8

The respondents noted that the applicant had not yet provided proof of non-payment but agreed to consider a representation after verification

Source reference: p. 3, para. 9

The Tribunal determined that the ends of justice would be met by directing the administrative authorities to perform a fact-based review of the delay and the claim for interest

Source reference: p. 3, para. 10
05

Holding

The Tribunal overruled the Registry’s objections and directed the assignment of an OA number

The OA was disposed of at the admission stage with a direction granting the applicant liberty to file a fresh comprehensive representation within two weeks

Source reference: p. 3, para. 10

The competent authority among the respondents is directed to decide the said representation by passing a reasoned and speaking order within four weeks of receipt

Source reference: p. 3-4, para. 10-11

No order as to costs was made

Source reference: p. 4, para. 13
CAT - ['Delhi']

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VIJAY SHANKAR YADAVvsNORTHERN RAILWAY

CAT - ['Delhi'] · April 28, 2026

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