- 1 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF JULY, 2025 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE MR. JUSTICE T.M.NADAF WRIT PETITION NO. 27053 OF 2024 (S-KSAT) BETWEEN: 1. STATE OF KARNATAKA REP. BY ADDITIONAL PRINCIPAL SECRETARY TO GOVERNMENT DEPARTMENT OF YOUTH EMPOWERMENT AND SPORTS, M S BUILDING BANGALORE- 560001. 2. THE COMMISSIONER YOUTH EMPOWERMENT AND SPORTS DEPARTMENT STATE YOUTH CENTRE NRUPATHUNGA ROAD BANGALORE- 560001. …PETITIONERS (BY SRI. REUBEN JACOB, AAG A/W SRI B RAVINDRANATH, AGA) AND: G N MRUTHYNJAYA AGED 64 YEARS S/O LATE SRI G D NANJUNDAPPA RETIRED ACCOUNTS SUPERINTENDENT DIRECTORATE OF YOUTH EMPOWERMENT AND SPORTS R/AT NO.1, 7TH CROSS Digitally signed by MARIGANGAIAH PREMAKUMARI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 BYRASANDRA, C V RAMANAGARA BENGALURU -560093. …RESPONDENT (BY SRI ABHISHEK ACHAIAH, ADV. FOR SRI. SHIVANANDA S., ADV.) THIS PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) QUASH THE ORDER DATED 18TH NOVEMBER 2022 IN APPLICATION NO. 4603/2021 AND C/W A. NO. 4602/2021 AND A. NO. 4858/2021 OF THE KARNATAKA STATE ADMINISTRATIVE TRIBUNAL, BANGALORE AT ANNEXURE-A, BY ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE ORDER OR DIRECTION, AS THE CASE MAY BE; B) ALLOW THE WRIT PETITION AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.G.PANDIT AND HON'BLE MR. JUSTICE T.M.NADAF ORAL ORDER (PER: HON'BLE MR. JUSTICE S.G.PANDIT) This writ petition by the State through the Department of Youth Empowerment and Sports under Article 226 of the Constitution of India, questioning the correctness and legality of order dated 18.11.2022 in Application Nos.4603, 4602 and 4858 of 2021 by the Karnataka State Administrative Tribunal at Bengaluru (for short “Tribunal”) allowing respondent’s application - 3 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 granting benefit of time bound advancement in the cadre of Accounts Superintendent; benefit of Automatic grant of promotion to the Senior Scale of pay in the cadre of Accounts Superintendent; granting increment, including an additional increment under Government Order dated 09.05.2002 with a direction to pay arrears of pay and emoluments on account of re-fixation; to grant annual increments in the cadre of Accounts Superintendent for the years 2013-2016; to pay arrears of commutation of pension, DCRG and Leave Encashment with interest at the rate of 8% p.a. on all the above benefits, failing to pay within three months from the date of order, to pay interest at the rate of 12% p.a. 2. The brief facts of the case are that, the respondent joined the service as a Stenographer in the year 1989 in the Department of Youth Empowerment and Sports. In terms of Government letter dated 23.02.1996 under O.M. dated 06.04.1996, the respondent was posted on independent charge to the higher post of Accounts - 4 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 Superintendent under Rule 32 of KCSRs and subsequently under O.M. dated 20.06.1996, respondent was regularly promoted and appointed to the post of Accounts Superintendent. Consequently, the pay of the respondent was fixed in the cadre of Accounts Superintendent under Rule 42B of KCSRs. The promotion of the respondent was pending finalization of Cadre and Recruitment Rules. It is stated that under Government Order dated 27.10.2000, pending finalization of Cadre and Recruitment Rules, method of recruitment and qualification for Accounts Officer post was prescribed. By O.M. dated 04.12.2007 (Annexure-A10) issued by the Commissioner, i.e., second petitioner herein, the promotion granted to the respondent to the cadre of Accounts Superintendent was withdrawn and the respondent was posted as Stenographer. The said order was the subject matter of Application No.5026/2007 before the Tribunal. The said application was dismissed with liberty to avail appeal remedy by order dated 12.12.2007. The appeal of the respondent was rejected - 5 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 by order dated 02.12.2010. Thereafter, the respondent approached the Tribunal in Application No.467/2011 C/w Application No.520/2011 which came to be disposed of by order dated 24.01.2018, observing that the respondent retired as Accounts Superintendent and to settle all consequential retirement benefits accordingly and quashed the order of reversion. The said order of the Tribunal was challenged by the petitioners before this Court in W.P.No.32656/2018. This Court, by order dated 20.03.2019 held that the respondent would be entitled for all the benefits from the date of his first promotion on 20.06.1996 to the cadre of Accounts Superintendent, taking note of the fact that the respondent had retired from service on attaining the age of superannuation on 31.12.2016. The said order has become final. Thereafter, the respondent filed Applications No.4603/2021, 4602/2021 and 4858/2021 seeking time bound advancement; automatic grant of promotion to the Senior scale of pay, grant of increments and additional - 6 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 increments; revised pension, arrears of commutation of pension, DCRG and Leave encashment along with interest. The Tribunal allowed the applications filed by the respondent and directed the petitioners-State to pay interest at the rate of 8% p.a. on all the benefits granted to the respondent. Against which, the State-authorities are before this Court in this writ petition. 3. Heard Sri.Reuben Jacob, learned Additional Advocate General along with Sri.B.Ravindranath, learned AGA for the petitioners-State and learned counsel Sri.Abhishek Achaiah, learned counsel Sri.Shivananda, learned counsel for respondent. Perused the entire writ petition papers. 4. Learned AAG Sri.Reuben Jacob would submit that the respondent would not be entitled to interest on the benefits granted by the Tribunal. He submits that promotion of the respondent was in the absence of Cadre and Recruitment Rules and subsequent reversion of the respondent was pending before this Court in - 7 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 W.P.No.32656/2018. It is submitted that after disposal of the said writ petition by this Court by order dated 29.03.2023, the cause of action arose for the respondent to seek time bound advancement, automatic grant of promotion to senior scale of pay, increments revised DCRG and leave encashment accrued. Without noticing the said fact, the Tribunal proceeded to grant interest from the date, when each of the arrears of amount was payable. Learned AAG would submit that the respondent would be entitled to interest only from the date of sanction of those benefits and not earlier to that. The benefits granted by the Tribunal are contrary to the material on record and the Tribunal failed to take note of the main factor of promotion of respondent, in the absence of Cadre and Recruitment Rules. Learned AAG would further submit that the respondent is not entitled to interest at the rate of 8% p.a. throughout and he submits that the Government Order with regard to sanction of interest was modified under - 8 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 Government Order dated 22.02.2022 reducing the rate of interest from 8% p.a. to 5.4% p.a. 5. Per contra, learned counsel for the respondent would support the order passed by the Tribunal and would further submit that the Tribunal has rightly ordered interest on the arrears since the petitioners denied the benefits which he was legally entitled to. Learned counsel would submit that the respondent was initially promoted on 20.06.1996 to the post of Accounts Superintendent and on completion of 10 years from the said date, the respondent was entitled for time bound advancement and from the said date, respondent was also entitled for automatic grant of promotion to the senior scale of pay on completion of the period stated therein. Further, learned AAG would submit that the respondent was denied increments and additional increments when the same was due. As such, the respondent would be entitled for interest on arrears from the date when it fell due to the respondent. Therefore, he submits that the Tribunal - 9 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 directed payment of interest at the rate of 8% p.a., based on the existing Government Order as on the said date. Thus, learned counsel for respondent prays for dismissal of the writ petition. 6. Having heard the learned counsel appearing for the parties and on perusal of the entire writ petition papers, the only point which falls for our consideration is as to, Whether the respondent would be entitled for interest on the arrears of benefit granted by the Tribunal and if entitled, at what rate? 7. Answer to the above point would be partly in the Affirmative, in that, the respondent would be entitled to interest on the arrears of benefits granted by the Tribunal from the date of the order of the Tribunal in Application No.520/2010 C/w. 467/2011 dated 24.01.2018 and the respondent would be entitled to interest at the rate of 8% p.a., up to 21.02.2022 on the arrears and subsequently at the rate of 5.4% in terms of the Government order dated 22.02.2022 (Annexure-D). - 10 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 8. The respondent joined service in the year 1989 as Stenographer. On the strength of the letter of the Government, the Commissioner, Youth Empowerment and Sports Department, under O.M., dated 06.04.1996, placed the respondent under Rule 32 of the KCSRs in the post of Accounts Superintendent. Further, by O.M., dated 20.06.1996, the respondent was regularly promoted to the post of Accounts Superintendent and his pay was fixed under Rule 32 of KCSRs. As on the date of respondent’s promotion, there was no C and R Rules and the method of recruitment to the post of Accounts Superintendent was not prescribed. The method of recruitment by way of Government order was prescribed on 27.10.2000 pending amendment to the existing C and R Rules. Admittedly, on 04.12.2007, the respondent was reverted to the cadre of Stenographer on the ground that there was no provision in the relevant Rules to promote a person holding the post of Stenographer to the post of Accounts Superintendent. The said order of reversion was the subject matter of litigation - 11 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 before the Tribunal as well as this Court. The Tribunal in Application No.520/2010 C/w. No.467/2011, wherein the order of reversion dated 21.01.2010 was under challenge, held that having promoted the respondent to the post of Accounts Superintendent in the absence of C and R Rules and having extracted work from him for more than 20 years, the action of the department in reverting the respondent is hit by the doctrine of promissory estoppel. Further, it is held that it is unjustifiable to penalize the applicant for the inaction of the State. The said order of the Tribunal was the subject matter of writ petition in W.P.No.32656/2018. This Court by order dated 29.03.2019 rejected the State’s writ petition with an observation that the respondent who was applicant before the Tribunal has been allowed to work for more than a decade and in view of the above, he had acquired the substantive right in the post of Accounts Superintendent. Relevant observation of this Court at paragraphs 11, 12 and 13 of the order reads as follows: - 12 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 “11. It is noted that the applicant was appointed as a Stenographer on 18.08.1989. On the ground that he had passed the Examination prescribed for the post of Accounts Superintendent, on the directions of the first respondent, second respondent by order dated 06.04.1996, placed him in independent charge in the post of Accounts Superintendent in the pay-scale of Rs.1720-3300 under Rule 32 of KCSRs. Subsequently, by Official Memorandum dated 20.06.1996, applicant was appointed as Accounts Superintendent against a vacant post. On satisfaction of the completion of the services of the applicant, the Department has revised the pay-scale under Rule 42-B of KCSRs. Further, the department had issued the seniority list of the cadre of Accounts Superintendent. In that list, applicant had been placed at Sl.No.2. The applicant had been allowed to work for more than a decade and in view of the above, he has acquired a substantive right in the post of Accounts Superintendent. 12. The applicant had been placed in independent charge of the post of Accounts Superintendent under Rule 32 of KCSRs. on 06.04.1996. From that date, till his retirement, he was working in the same post and was drawing the salary attached to the said post. The applicant was - 13 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 placed in independent charge on the basis of passing the Examination. He had not misrepresented or played any fraud. Rather, the respondents themselves had placed the applicant in independent charge under Rule 32 of KCSRs. Subsequently, on expressing satisfaction regarding his service, he was appointed as Accounts Superintendent against a vacant post and his salary had been fixed under Rule 42-B of KCSRs. Even in the seniority list prepared for the post of Accounts Superintendent, his name was at Sl.No.2 and he was allowed to work in the said post for more than a decade till his retirement on superannuation. He had worked in the said post for substantial period of time without being questioned by the respondents. At the fag end of his service the respondents have passed the order of reversion. The order dated 02.12.2010 passed by the respondent confirming the orders dated 04.12.2007 and 21.01.2010 in our view, is contrary to Article 311 of the Constitution of India and also the provisions of the KCS (CCA) Rules. Hence, the same is unsustainable. The Tribunal, after considering all these aspects rightly allowed the applications filed by the applicant. The Tribunal was justified in granting the relief to the applicant. - 14 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 13. The applicant, till his retirement, for more than two decades, had worked as Accounts Superintendent and he had been paid the salary attached to that post. In the facts and circumstances of the case, we decline to interfere with the order passed by the Tribunal. Accordingly, writ petition is dismissed.” 9. The above order passed by this Court holding that the respondent has acquired the substantive right in the post of Accounts Superintendent has attained finality and the same is binding on the State. From the date of the order of this Court dated 29.03.2019 in W.P.No.32656/2018, the State ought to have considered the request of the respondent for grant of consequential benefits and ought to have sanctioned the entitlement of the respondent from the said date. The respondent has become entitled for the benefits from the date on which he was entitled to those benefits, but he would be entitled to interest on the arrears of those benefits from the date of the order of this Court i.e., 29.03.2019 in W.P.No.32656/2018. - 15 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 10. As on the date of the order of this Court dated 29.03.2019 in W.P.No.32656/2018 the rate of interest on the arrears of salary or on delayed payment of pensionary benefits in terms of Government order dated 21.08.2003 was 8% p.a. The said rate of interest was modified under Government order dated 22.02.2022 and the rate of interest was reduced from 8% p.a., to 5.4% p.a. Therefore, the respondent would be entitled to interest at the rate of 8% p.a., on the arrears of benefits granted by the Tribunal from the order of this Court dated 29.03.2019 in W.P.No.32656/2018 till 21.02.2022 and at the rate of 5.4% p.a., from 22.02.2022 till the payment is made to the respondent. 11. The interest on the arrears of benefits granted to the respondent shall be calculated as directed above and the interest portion, if any, paid already shall be adjusted and balance if any shall be paid in terms of the above modified order. - 16 - HC-KAR NC: 2025:KHC:26019-DB WP No. 27053 of 2024 The time for Compliance shall be Three months. With the above, writ petition stands disposed of. Sd/- (S.G.PANDIT) JUDGE Sd/- (T.M.NADAF) JUDGE MPK/NC CT:bms