Delhi HC junks MCD claim of ‘extreme financial crisis’ to oppose paying dues to retd staff

Bijender Singh retired from the post of Assistant Municipal Secretary on May 31, 2019. He moved the CAT after his retirement benefits were not paid. The CAT, on February 6 this year, directed MCD to release the payment of interest on the delayed payment of gratuity at GPF rate and on the other retiral benefits at 12% per annum from the due date.

The MCD then moved the HC, challenging CAT’s order solely on the ground that it is “not in a position to pay interest at the rate of 12% p.a.” to Singh owing to its precarious finances.

Dismissing the MCD’s plea, the bench of Justices Hari Shankar and Sudhir Kumar Jain recorded in its order: “It can’t be believed the MCD does not have funds to pay 12% interest to the respondent (Singh) as directed by the learned Tribunal. We are sanguine that funds available with the MCD are far in excess of interest which would be payable to the respondent @ 12% on his retiral arrears. Besides, there is no iota of material on record that can support the contention that MCD is in such a dire financial crisis that it is not in a position to pay interest at the rate of 12% p.a. on retiral dues of the respondent which has been unjustly withheld from him.”

Noting that unjustified delay in non-payment of retiral benefits must be met with a “zero-tolerance approach”, the bench recorded, “It must be remembered that survival of a conscientious government servant, and his family, in the evening of their lives, is often dependent on their retiral benefits. Expeditious and prompt disbursal of retiral benefits is, therefore, of the essence…”