MCD DIRECTED TO FINALIZE REVISED PENSIONARY BENEFITS AND SALARY ARREARS ARISING FROM STEPPING UP OF PAY

The applicant, a 61-year-old retired employee of the Municipal Corporation of Delhi (MCD), retired on February 29, 2024, following which his retiral dues and salary arrears were withheld.

On June 21, 2024, the applicant submitted a representation regarding a pay anomaly, noting that a junior colleague, Smt. Mamta Nakra, was receiving a higher salary.

The respondents acknowledged the grievance on September 23, 2025, and subsequently filed a short affidavit on February 12, 2026, admitting to the anomaly and stating that they had stepped up the applicant's pay via an order dated July 17, 2025.

Despite this order, the applicant approached the Tribunal as consequential benefits remained unpaid.

1. Whether the respondents are obligated to release the revised Pension Payment Order (PPO), recalculated commuted pension, and salary arrears following the official rectification of the pay anomaly.

2. Whether the Tribunal should direct a time-bound disposal of the remaining grievances arising from the pay re-fixation.

The court applied the administrative principle of "stepping up of pay," which ensures that a senior employee's pay is not less than that of their junior in the same cadre, a principle central to service jurisprudence.

The court relied on the principles of natural justice and administrative accountability, which require that once a grievance is admitted and an order passed (the order dated July 17, 2025), the state must take that decision to its "logical conclusion" by disbursing all consequential financial benefits.

The Tribunal observed that the respondents had already admitted the pay anomaly in their counter-affidavit and had issued a formal order for stepping up the applicant's pay on July 17, 2025.

The court found that the mere issuance of an order was insufficient as the applicant had yet to receive the tangible benefits of that decision, specifically the revised PPO and the resulting arrears.

Since the respondents expressed no objection to a time-bound direction, the Tribunal determined that the most equitable course of action was to compel the respondents to finalize the administrative process they had already initiated.

The respondents were ordered to address the issuance of the revised PPO, recalculation of commuted pension, and payment of salary arrears within eight weeks of receiving the order; if any grievance is denied, the respondents must pass a reasoned and speaking order, granting the applicant liberty to agitate the matter afresh if necessary.