Delhi High Court
Municipal Corporation Of Delhi vs Zarrin Bano on 21 July, 2025
Author: Navin Chawla
Bench: Navin Chawla
$~46
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 21.07.2025
+ W.P.(C) 10317/2025
MUNICIPAL CORPORATION OF DELHI .....Petitioner
Through: Mr. Anand Prakash, Standing
Counsel with Ms. Varsha Arya,
Adv.
versus
ZARRIN BANO .....Respondent
Through: Mr. Rajesh Chauhan, Adv
CORAM:
HON'BLE MR. JUSTICE NAVIN CHAWLA
HON'BLE MS. JUSTICE RENU BHATNAGAR
NAVIN CHAWLA, J. (ORAL)
CM APPLs. 42855-56/2025 (Exemption)
1. Allowed, subject to all just exceptions.
W.P.(C) 10317/2025 & CM APPL. 42854/2025
1. This petition has been filed by the petitioner, challenging the
Order dated 25.10.2024 passed by the learned Central Administrative
Tribunal, New Delhi (hereinafter referred to as the, 'Tribunal') in
O.A. No. 1702/2024, titled Zarrin Bano v. Municipal Corporation of
Delhi & Anr., whereby the learned Tribunal allowed the O.A. filed by
the respondent herein with the following directions:-
" 25. For the reasons stated above, both the
issues are decided in favour of the applicant
and against the respondents. The respondents
are hereby directed to verify and release all
remaining retirement benefits specifically
DCRG amount of Rs.16,83,809/- and 3rd
MACP arrears of Rs.82,006/- if not already
released as stated in the OA, within a period of
four months from date of production of the
receipt of certified copy of Order passed
today.
26. Respondents are further directed to pay the
applicant simple interest at the rate of 8% per
annum on the delayed payment of unpaid
DCRG amount of Rs.16,83,809/- and 34
MACP arrears of Rs.82,006/- and on payment
of tuition fee (2019-2020) Rs.54,000/ - and
tuition fee (2020-2021) Rs.27,000/}- already
paid on 112.07.2023 and 20.05.2024 from date
of entitlement till date of actual payment, It is
made clear that if the balance retirement
benefits being unpaid with interest not been
paid by the respondents within four months
from the date of production or receipt of
certified copy of order passed today, the same
shall carry simple interest at the rate of 12%
per annum from the date of entitlement to the
date of actual payment."
2. The limited grievance of the petitioner against the Impugned
Order pertains to the rate of interest awarded to the respondent.
3. The learned counsel for the petitioner has placed reliance on the
Judgment passed by this Court in Rajbir Singh v. The Commissioner
of MCD & Anr., 2025 SCC OnLine Del 649, to contend that the issue
of the appropriate rate of interest to be granted in such matters has
been referred by this Court to the Full Bench of the learned Tribunal.
He, therefore, prays that the present petition also be remanded to the
learned Tribunal for consideration of this issue.
3. Issue notice.
4. Notice is accepted by Mr. Chauhan, the learned counsel
appearing on behalf of the respondent. He waives his right to file a
reply to this petition.
5. The learned counsel for the respondent does not dispute that the
question of the appropriate rate of interest to be awarded in such
matters, is pending adjudication before the Full Bench of the learned
Tribunal.
6. In similar matters, this Court has observed that the issue of
interest should be remanded to the learned Tribunal to be determined
in accordance with the Judgment of the Full Bench of the learned
Tribunal. We may reproduce the directions issued by this Court in one
such matter, that is, Municipal Corporation of Delhi & Another v.
Dorothy John, 2025 SCC OnLine Del 4910, as under:
"14. Keeping in view the above, we dispose of
the present petition by directing as under:
a. If not already released, the petitioners
shall release the retiral benefits to the
respondent amounting to Rs.13,91,891/-
towards gratuity and Rs.14,17,890/- towards
commutation of pension and the 7th CPC
arrears, along with interest @6% per annum,
within a period of two weeks from today.
b. In case the payment is not made
within a period of two weeks, the petitioners
shall pay interest @ 12% per annum to the
respondent.
c. The O.A., only for the purposes of
determination of the rate of interest that the
respondent is entitled to, shall be placed
before the Full Bench of the learned Tribunal
for a fresh adjudication.
d. The parties shall appear before the
Full Bench on 11th August, 2025, the date on
which, we are informed, the other matters are
listed before the Full Bench."
7. Keeping in view of the above, we dispose of the present petition
with the following directions:-
I. If not already released, the petitioner shall release the
retiral benefits to the respondent amounting to
Rs.16,83,809/- and the 3rd MACP arrears of Rs.
82,006/-, along with interest @ 8% per annum on the
delayed payment of unpaid DCRG amount of
Rs.16,83,809/- and the 3rd MACP arrears of
Rs.82,006/- and on payment of tuition fee (2019-2020)
Rs.54,000/- and tuition fee (2020-2021) Rs.27,000/-
already paid on 12.07.2023 and 20.05.2024, from date
of entitlement of the respondent to the same till date of
actual payment, within a period of two weeks from
today.
II. In case the payment is not made within a period of
two weeks, the petitioner shall pay interest @ 12% per
annum to the respondent.
III. The O.A., only for the purposes of determination of
the rate of interest that the respondent is entitled to,
shall be placed before the Full Bench of the learned
Tribunal for a fresh adjudication.
IV. The final rate of interest shall be in accordance with
the decision of the Full Bench of the learned Tribunal,
subject to any challenge thereto;
V. The parties shall appear before the Full Bench of the
learned Tribunal on 11th August, 2025, the date on
which we are informed, the other matters are listed
before the Full Bench.
8. With the above directions, the present petition, along with
pending applications, stands disposed of.
NAVIN CHAWLA, J
RENU BHATNAGAR, J
JULY 21, 2025
Sk/sm
