He stressed that retirees cannot be deprived of lawful entitlements due to official lapses.

Chandigarh MC Retirees Win 7.5% Interest on Delayed Pensions: High Court Delivers Big Relief

By directing payment of 7.5 per cent interest on delayed pension dues, the Punjab and Haryana High Court has delivered significant relief to retired employees of the Municipal Corporation Chandigarh (MC). This marks a big victory for pensioners waiting years for their rightful benefits.

In its Dec 29, 2025 ruling, the court clarified that interest will be calculated from two months after the date of retirement, recognising that pensions should not be kept pending indefinitely. The petitioners, including former MC employee PK Pushkarana and others, had initially received only 90 per cent of their provisional pensions upon retirement between 2014 and 2015, with the balance released much later in 2018.

Justice Jagmohan Bansal said that administrative communication gaps between the Chandigarh Administration and the Municipal Corporation caused these delays, but he stressed that retirees cannot be deprived of lawful entitlements due to official lapses.

Importantly, the court ordered that 60 per cent of the interest burden will be borne by the Chandigarh Administration and 40 per cent by the Municipal Corporation, easing financial pressure on the civic body.

The High Court also set a deadline: the MC must verify and pay the interest within three months, or else the rate automatically rises to 9 per cent, which is a strong incentive for swift compliance.

Legal experts said this judgement reinforces retirees’ rights and sets a precedent for timely pension disbursal with due compensation for delays.

Source: The Tribune