Decide On Uniformity In Interest Rate For Delayed Payment Of Retiral Benefits: Delhi High Court To CAT

A division bench of Justice C. Hari Shankar and Justice Ajay Digpaul noted that while in some cases the CAT has been awarding interest on delayed payment of retiral benefits at GPF rates, in other cases it has been awarding at varying rates.

“It is true that we are coming across some cases in which the Tribunal has been awarding interest on delayed payment of retiral benefits at GPF rates and others where they have been awarding at varying rates, including 12% p.a., where the MCD has delayed disbursal of retiral benefits to the employee.”

The Court was considering the petitioner's challenge to the CAT order, to the extent the Tribunal awarded interest on delayed payment of retiral benefits to the petitioner at GPF rates.

The petitioner submitted that there should be consistency in the matter of the rate of interest awarded, especially where there is no ground to distinguish one case from the other.

The Court accepted the petitioner's view that there has to be uniformity in the rate of interest awarded to the persons who may otherwise be similarly situated.

To resolve the issue of uniformity, the Court directed the matter be placed before the Chairman of the Tribunal, who would constitute an appropriate Bench to look into the matter.

“In view of the nature of the order we are passing today, and as it involves an issue of uniformity in judicial orders passed by the Tribunal in respect of rate of interest to be awarded on delayed payment of retiral benefits, we direct that this matter be placed before the Hon'ble Chairman of the Tribunal, who is respectfully requested to constitute an appropriate Bench to take call on the matter, so that there is no lack of uniformity in the matter of rate of interest paid on retiral benefits, where the MCD has been found responsible for delayed disbursal.”

The Court also set-aside the impugned order to the extent it awards interest to the petitioner on the delayed payment of retiral benefits at GPF rates. It asked the Tribunal to take a fresh look at the rate of interest which should be awarded to the petitioner.

Case title: Rajbir Singh vs. Commissioner Mcd And Anr

Citation: 2025 LiveLaw (Del) 177