Dr. Sushil Kumar Gupta v. Municipal Corporation of Delhi

Delhi High Court · 11 Mar 2025 · 2025:DHC:1617-DB
C. Hari Shankar; Ajay Digpaul
W.P.(C) 17591/2024 & W.P.(C) 17592/2024
2025:DHC:1617-DB
administrative appeal_allowed Significant

AI Summary

The Delhi High Court held that interest on delayed retiral benefits must be paid from the date of retirement, modifying the Tribunal's order to reflect this principle.

Full Text
Translation output
W.P.(C) 17591/2024 W.P.(C) 17592/2024
HIGH COURT OF DELHI
W.P.(C) 17591/2024 & CM APPL. 74848/2024
DR. SUSHIL KUMAR GUPTA .....Petitioner
Through: Mr. Umesh Singh, Adv.
VERSUS
MUNICIPAL CORPORATION OF DELHI .....Respondent
Through: Ms. Shivangi Kumar, Mr. Gaurav Kumar Arya, Mr. Ismat Chughtai, Advs.
W.P.(C) 17592/2024 & CM APPL. 74851/2024
DR. RASHMI S. CHANDER .....Petitioner
Through: Mr. Umesh Singh, Adv
VERSUS
MUNICIPAL CORPORATION OF DELHI .....Respondent
Through: Ms. Shivangi Kumar, Mr. Gaurav Kumar Arya, Mr. Ismat Chughtai, Advs.
CORAM:
HON'BLE MR. JUSTICE C. HARI SHANKAR
HON'BLE MR. JUSTICE AJAY DIGPAUL
ORDER (ORAL)
11.03.2025 C. HARI SHANKAR, J.
JUDGMENT

1. These writ petitions assail identical orders passed by the Central Administrative Tribunal[1] by which, while directing grant of payment “the Tribunal” hereinafter of delayed retiral benefits to the concerned petitioners, the Tribunal has awarded interest only from the expiry of three months from the passing of the order, @ 7.[5] % from expiry of three months till the expiry of six months and @ 12% thereafter till the date of payment.

2. Aggrieved thereby and contending that the petitioners would be entitled to interest from the date of their superannuation, these writ petitions have been filed.

3. We have had occasion to decide an identical matter in WP(C) 15561/2024[2].

4. We have held, in the said decision, following our earlier judgment in MCD v Bijender Singh[3], that a retired employee who has not been disbursed retiral benefits would be entitled to interest from the date of retirement.

5. As such, we modify the order passed by the Tribunal by holding that the interest at the rate of 7.5% would be reckoned from the date of the petitioners’ superannuation, and not from the expiry of three months from the order of the Tribunal, till the date when the principal amount of the retiral dues was/is paid. We clarify that the direction for increase in the rate of interest to 12% p.a., in the event the amount is not/has not been paid before the expiry of six months from the date of the judgement of the Tribunal, stands as it is. Dr Priya Vrata v MCD.

6. The writ petitions stand allowed accordingly.

C. HARI SHANKAR, J.