Right to interest on delayed retiral dues affirmed despite financial constraints.

The applicant, Rakesh Kumar Aggarwal, retired on December 31, 2023

He received his leave encashment on October 29, 2024, death-cum-retirement gratuity on February 25, 2025, and October 24, 2025, and GPF on March 19, 2025

The applicant filed the present O.A. seeking payment of interest on delayed retiral dues, release of pending arrears of Dearness Allowance (DA) for 2018-19 and January 2021 to December 2021, Bonus for 2014-15, 2019-20, and 2020-21, and MACP arrears along with 12% p.a. interest

The respondent admitted the applicant's entitlement to all retirement benefits, citing financial constraints as the reason for delayed payment

The Tribunal noted that numerous similar OAs had been filed by ex-employees due to delayed benefits, and that the MCD's recent budget of Rs. 17,000 Crores suggested it could allocate funds for such payments

Whether the respondent should be directed to pay interest on the delayed payment of retiral dues to the applicant

Whether the respondent should be directed to release the pending arrears of Dearness Allowance, Bonus, and MACP arrears to the applicant

The court relied on the established legal principle that employees are entitled to receive interest for delayed payment of retirement benefits, citing the Full Bench judgment of the Central Administrative Tribunal in O.A. No. 2821/2023 titled Rajbir Singh Vs. MCD and Anr. dated October 30, 2025

The Tribunal found that the applicant's retiral benefits were significantly delayed, with payments stretching into 2024 and 2025 despite his retirement in December 2023

The respondent admitted the applicant's entitlement to all benefits, attributing the delay solely to financial constraints

However, the Tribunal rejected this explanation, noting it was frequently used by the MCD and that the recent Rs. 17,000 Crore budget demonstrated the MCD's capacity to allocate adequate funds

Relying on the precedent set by the Full Bench judgment in Rajbir Singh (supra), the Tribunal concluded that such delays warrant the payment of interest

It directed the respondent to release the pending dues, including DA allowances, MACP arrears, and Bonus, within eight weeks from the receipt of the order

Additionally, the respondent was ordered to pay interest on the delayed payments at applicable GPF rates, as per the Full Bench judgment in Rajbir Singh (supra), within the same eight-week period

These exercises are subject to the outcome of Writ Petition No. 19558/2025, filed by the respondents before the Hon'ble High Court of Delhi against the Rajbir Singh order