Tribunals and CommissionsDivision Bench(2026) 10 CAT CK 3583

Devender Prakash Sharma & Ors. vs Municipal Corporation of Delhi & Anr.

Central Administrative Tribunal, Principal Bench, New Delhi · Decided on 7 October 2026

HON’BLE JUDGES
Harvinder Kaur Oberoi, Member (J) · Dr. Anand S Khati, Member (A)
RESULT
Disposed Of
CASE NUMBER
OA No. 760/2026

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Judgment

25 paragraphs · 1,088 words

Hon’ble Ms. Harvinder Kaur Oberoi, Member (J)

MA No. 1044/2026

For the reasons stated therein the MA for joining together is allowed.

MA No. 1045/2026

2.

For the reasons stated therein the MA for exemption is allowed subject to just exceptions.

OA No. 760/2026

3.

The learned counsel for the applicants submits that the issues involved in the present Original Application stand covered by the decisions rendered by this Tribunal in various Original Applications, particularly O.A. Nos. 1737/2025 decided on 16.02.2026.

3.1.

It is submitted that the present Original Application has been filed by 16 applicants, all of whom are retired employees who superannuated on different dates from different zones different posts of the MCD. Despite their retirement, their complete retiral dues have not yet been released. While some of the applicants have received part payments under certain heads, the remaining retiral dues are yet to be paid in full.

4.

The respondents have filed their affidavit, which is already on record. From the contents of the said affidavit, it is apparent that the respondents have admitted that, owing to paucity of funds with the MCD, there has been a delay in the release of the retiral dues of the applicants and that complete payment under all the relevant heads is yet to be made. However, certain payments under various heads have already been released.

54.

Learned counsel for the applicants submits that, in view of the aforesaid admitted position, the present O.A. may be disposed of in terms of the directions issued by this Tribunal in O.A. No. 1737/2025.

6.

Learned counsel for the respondents has no objection to the disposal of the present O.A. in the aforesaid terms. It is submitted, however, that in O.A. No. 1737/2025, a period of three months was granted for release of all pending retiral dues. Since the present matter involves payment of retiral dues to as many as 16 applicants and the respondents are required to process the claims individually, some reasonable time may be granted for compliance.

7.

In view of the submissions made by learned counsel for the parties and the admitted position on record, the present O.A. is disposed of in terms of the directions issued by this Tribunal in O.A. No. 1737/2025, with the following directions:

“7.

It would be appropriate to highlight relevant paragraphs of the judgment in the case of Rajbir Singh Vs. Municipal Corporation of Delhi and Ors. CAT (supra). Relevant paragraphs 16, 18 and 19 are reproduced as under-

“16.

It is also evident that if delay in payment of pension and gratuity etc. (including the arrears of pension and gratuity) was not attributable to administrative lapses, interest at the rates as may be specified time to time by the Government of India in this behalf on the penal amount is required to be paid provided that three months shall be calculated as per the notification dated 20.12.2021, Rule 68 of CCS (Pension) Rules, 1972 at the rate of GPF

rate.” “18. In this reference, limited issue is to decide the rate of interest on delayed payment of retiral dues, i.e., GPF as well as pension, Gratuity etc. in relation to the retired employees of the Municipal Corporation of Delhi. Since this reference has been initiated in accordance with the petitions relating to the retired employees of the Municipal Corporation of Delhi, and vide notification dated 22.07.2005 of the Government of India, CCS Pension Rules will be applicable in this matter as Municipal Corporation of Delhi has also been exempted from the applicability of the Payment of Gratuity Act, 1972. As per Rule 65 of the Notification said in the proceedings, interest on delayed payment of Provisional Family Pension or Gratuity shall be paid to such retired employees or to his / her family in accordance with the specific rules which have been indicated below if delay is caused due to fault of the employer. Accordingly, in case of Municipal Corporation of Delhi, under the provisions of CCS (Pension) Rules, 1972 in Rule 68 have been considered as applicable. The Government of India in this behalf on the penal amount is required to be paid provided that the three months shall be calculated as per the notification dated 20.12.2021. The rate of penalty is applicable at the rate of GPF in the relevant years. Accordingly, if there is a delay in payment of GPF, Pension, Gratuity etc., which is attributable to the Municipal Corporation of Delhi, same would be calculated in the same manner as has

been disclosed hereinabove.” “19. Thus, in view of the aforesaid deliberations and pleadings, we are of the considered opinion that on the delayed payment of GPF as well as Pension, Gratuity etc., interest would be payable at the rate of GPF for the relevant years. It is clarified that interest on the delayed payment of GPF amount is to be calculated on the basis of compound interest which shall also be applicable on delayed payment of Pension and Gratuity etc.” (emphasis supplied)

8.

In view of the above submissions of the learned counsels for the respective parties, without expressing any opinion on the merits of the case, we deem it just and proper that principles of natural justice will be met and hereby the respondents are directed to release gratuity and DACP arrears, with interest, in accordance with law and in terms of the judgment in Rajbir Singh vs. Municipal Corporation of Delhi within a period of three months from the date of receipt of order passed today.

9.

Resultantly the OA stands disposed of in above indicated terms.

10.

There shall be no order as to costs.”

(i)

The respondents shall process and release the balance retiral dues payable to each of the applicants, under all admissible heads, after duly adjusting the payments, if any, already made.

(ii)

The aforesaid exercise shall be completed and the balance amount, if found payable, shall be released to the respective applicants within a period of three months from the date of receipt of a copy of this order.

(iii)

In case any amount is withheld or not found payable under any particular head, the respondents shall communicate the reasons therefor to the concerned applicant by way of a reasoned and speaking communication.

(iv)

The respondents shall ensure that the retiral dues are released without any further avoidable delay.

No order as to costs.

8.

In view of the above, the present OA stand disposed of. Pending MA’s, if any, also stand disposed of. No order as to costs.