Retirement benefits are legal rights demanding timely payment; unjustified delay incurs interest liability of 8% per annum.

ORDER (ORAL)

AS PER AJAY PRATAP SINGH, MEMBER JUDICIAL:

The applicant, a retired ST. Clerk from Health Department, Karol Bagh Zone, MCD, by means of this Application has invoked the jurisdiction of this Tribunal under Section 19 of the Administrative Tribunals Act, 1985 for issuance of a direction to the respondent (MCD) to release retirement gratuity Rs.5,73,300/-, commuted value of pension Rs.8,20,754/-, GPF Rs.11,00,111/-, Leave Encashment and other dues of pay and allowances since 2013 with interest @ 18% per annum on delayed payment including pension from the date of entitlement till date of actual payment.

PRAYER

2. Applicant has claimed following main relief (s) [as extracted from the OA) reads as under:-

“a. To direct the respondents to release amount of retirement benefits etc. as per details furnished in ANNEXURE A-1 and monthly pension.

b. To direct the respondents to grant interest @ 18% or as deemed fit in respect of all delayed payments of retirement benefits including pension as per details furnished in ANNEXURE A-1.

c. Any other relief or direction which this Hon’ble Tribunal deems fit and proper in view of the facts and circumstances of the case may be granted/passed in favour of the applicant and against the respondents.”

FACTS IN BRIEF

3. Shorn of unnecessary details, briefly stated facts adumbrated by the applicant that applicant stood retired on 05.12.2020 as ST. Clerk, Karol Bagh Zone, Health Department of MCD with unblemished service record. Respondents have not paid retirement gratuity Rs.5,73,300/-, commuted value of pension Rs.8,20,754/-, GPF Rs.11,00,111/-, Leave Encashment and other dues of pay and allowances to the applicant which were payable on the date of retirement. The applicant has already completed all formalities before her date of retirement and there is no delay on her part. Respondents have belatedly paid some of the retirement benefits even after delay of more than 3½ years, hence, the applicant is legally entitled to the interest @ 18% p.a. on the delayed payment from the date of entitlement till the date of actual payment already paid to the applicant.

4. Per contra, the respondents have contested the matter by filing counter affidavit stating that the applicant was working as ST. Clerk and has taken VRS on 05.12.2019. Though there was delay in obtaining necessary document from applicant and administrative approval for further release of retirement benefits to the applicant but that was not intentional, rather due to COVID-19 pandemic. The applicant has since been paid all her retiral dues and detail of disbursement of the same is reproduced as under:-

5. Respondents have categorically stated in the counter affidavit that all the retirement benefits admissible to the applicant already stand paid to her. However, delay was due to obtaining administrative approval from the competent authority for further release of retiral benefits.

SUBMISSIONS

6. Shri J.S. Mann, learned counsel for applicant argued and can be summarized as –

(i) Applicant retired on 05.12.2020 and respondents have released retirement gratuity Rs.5,73,300/-, Commuted value of pension Rs.8,20,754/-, GPF Rs.11,00,111/-, GIS Rs.9,678/-,7th CPC arrears Rs.46,040/- but belatedly after more than 3½ years and the applicant is entitled for interest @ 18% p.a. on the delayed payment from the date of retireme