- 1 - HC-KAR NC: 2025:KHC-D:11543-DB WA No. 100445 of 2025 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 8TH DAY OF SEPTEMBER, 2025 PRESENT THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL WRIT APPEAL NO. 100445 OF 2025 (S-KSRTC) BETWEEN: THE MANAGEMENT OF N.W.K.R.T.C., HUBBALLI RURAL DIVISION, REPRESENTED BY ITS DIVISIONAL CONTROLLER, C.B.T. 4TH FLOOR, HUBBALLI-580020. …APPELLANT (BY SRI. PRASHANT S. HOSMANI, ADVOCATE) AND: SRI. SHESHU S/O. DOLLAYYA NAIK, AGE: 64 YEARS, OCC: RETIRED ASSISTANT ACCOUNTANT, R/O. H. NO.27, RANAKAPUR LAYOUT, KESHWAPUR, HUBBALLI-580020, DIST. DHARWAD. …RESPONDENT (BY SRI. RAVI HEGDE, ADVOCATE) THIS WRIT APPEAL IS FILED U/S.4 OF KARNATAKA HIGH COURT ACT, 1961, PRAYING TO SET ASIDE THE ORDER DATED 13/06/2025 PASSED BY THE LEARNED SINGLE JUDGE IN WP NO.103596/2025 AND DISMISS THE WRIT PETITION IN ITS ENTIRETY, IN THE INTEREST OF JUSTICE AND EQUITY. THIS WRIT APPEAL COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by CHANDRASHEKAR LAXMAN KATTIMANI Location: High Court of Karnataka, Dharwad Bench - 2 - HC-KAR NC: 2025:KHC-D:11543-DB WA No. 100445 of 2025 CORAM: THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL ORAL ORDER (PER: THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV) This writ appeal is filed by the NWKRTC calling in question correctness of the order passed by the learned Single Judge in disposing of the writ petition in WP No.103596/2025, whereby, writ of mandamus was issued directing the NWKRTC to pay interest at the rate of 9% p.a. on the belated payment towards Leave Encashment benefit. 2. The operative portion of the direction passed in the writ petition is extracted as below: “ORDER i. The petition is partly allowed. ii. A writ of mandamus is issued directing the respondent- Corporation to pay interest at the rate of 9% per annum on the belated payment towards leave encashment benefit on the basis of the representation submitted by the petitioner from the date of retirement till the actual date of payment made by the respondent Corporation. - 3 - HC-KAR NC: 2025:KHC-D:11543-DB WA No. 100445 of 2025 iii. This amount shall be paid within a period of six weeks from the date of receipt of a copy of this order. iv. If the said amount is not paid within a period of six weeks at the rate of 9% per annum, the interest would have to be paid at 12% per annum thereafter.” 3. Both parties had made efforts for settlement through mediation and have arrived at an amicable settlement for resolution of the dispute. 4. Learned counsel appearing for the NWKRTC would submit that this settlement is being entered into by the NWKRTC in the light of the peculiar facts of the present petition and the settlement arrived at is not to be treated to be a precedent in other matters. Both parties have agreed to the terms during mediation. The terms of the joint memo of settlement is as under: 1. The Appellant/Corporation in the aforementioned Writ appeals is calling in question the order passed by the learned Single Judge directing the Appellant/Corporation to pay interest @ 9% p.a on the belated payment towards Leave Encashment benefits within 8 weeks failing which the rate of interest would be increased to 12%. 2. During pendency of the above writ appeals parties have settled the issue involved in the present writ appeals in - 4 - HC-KAR NC: 2025:KHC-D:11543-DB WA No. 100445 of 2025 following terms and condition in order put an end to the litigation. a. The Appellant/Corporation though questioned the order passed by the Learned Single Judge, has agreed to pay interest at 7% p.a on the belated payment towards Leave Encashment benefits. The Appellant/ Corporation has calculated the interest @ 6% and has handed over the cheques to the counsel for the respondents, which are drawn in the name of the respondents separately. The counsel for the respondent has agreed and has received the cheques. b. The Appellant/corporation undertakes to pay the remaining 1% interest within 4 weeks. c. If the Management doesn’t abide by the aforesaid conditions, this order can be executed by filling appropriate proceedings before the court of law. d. The above settlement and terms agreed upon is in accordance with law and do not offend any law of the land. It is fair and reasonable settlement in the interest of both parties and this settlement is arrived at between the parties due to the peculiar facts and circumstances of the case. WHEREFORE, the parties to the proceedings pray to dispose of the matter in the aforementioned terms and conditions, in the ends of justice and equity. 5. In terms of the mediation report and the joint memo, writ appeal stands disposed off. - 5 - HC-KAR NC: 2025:KHC-D:11543-DB WA No. 100445 of 2025 6. Pending applications, if any, are disposed off as not surviving for consideration. Sd/- (S.SUNIL DUTT YADAV) JUDGE Sd/- (VIJAYKUMAR A.PATIL) JUDGE RKM, CT: AN LIST NO.: 2 SL NO.: 36