- 1 - HC-KAR NC: 2025:KHC:33352-DB WA No. 230 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF AUGUST, 2025 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C M JOSHI WRIT APPEAL NO. 230 OF 2025 (S-R) BETWEEN: 1. M/S. HMT MACHINE TOOLS LTD. BANGALORE COMPLEX,JALAHALLI, BANGALORE - 560 013 REPRESENTED BY ITS DEPUTY GENERAL MANAGER MR. SUBRAMANYA. …APPELLANT (BY SRI RAYAPPA Y. HADAGALI, ADVOCATE) AND: 1. MR. N. RAMESH SON OF V. NARASIMIAH AGED ABOUT 64 YEARS RESIDING AT NO.224 10TH CROSS NAIDU LAYOUT Digitally signed by PRABHAKAR SWETHA KRISHNAN Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:33352-DB WA No. 230 of 2025 KUVEMPU NAGAR BANGALORE - 560 014. 2. ASSISTANT LABOUR COMMISSIONER (CENTRAL), YESHWANTPUR SHRAM SADAN, YESHWANTPUR INDUSTRIAL SUBURB, II STAGE GOREGUNTEPALYA, TUMKUR ROAD BANGALORE - 560 022. …RESPONDENTS THIS WRIT APPEAL FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER DATED 10/12/2024 PASSED BY THE LEARNED SINGLE JUDGE OF THIS HON'BLE COURT IN W.P.NO.6760/2023 (S-RES) AND DISMISS THE SAID WRIT PETITION & ETC. THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:33352-DB WA No. 230 of 2025 CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C M JOSHI ORAL JUDGMENT (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE) 1. For the reasons stated in the application-I.A.No.1/2025, the same is allowed. The delay in filing the appeal is condoned. 2. The appellant has filed the present appeal impugning an order dated 10.12.2024 passed by the learned Single Judge in Writ Petition No.6760 of 2023 (S-R). 3. Respondent No.1 had filed the said writ petition, inter alia, seeking a direction to the appellant for making a payment of gratuity amounting to ₹10,00,000/- along with simple interest at the rate of 10% per annum from 01.04.2017 and compound interest from 01.05.2018 till date. Respondent No.1 had also sought the amount due on account of leave encashment. 4. The learned Controlling Authority had allowed the respondent's application for payment of gratuity in terms of an order dated 31.01.2018, whereby the appellant was directed to pay - 4 - HC-KAR NC: 2025:KHC:33352-DB WA No. 230 of 2025 gratuity of ₹10,00,000/- along with simple interest at the rate of 10% per annum, with effect from 01.04.2017 till the date of final payment. 5. There is no dispute that respondent No.1 is also entitled to encashment of leave lying to his credit in accordance with the applicable Rules. In W.P.No.14193/2024 captioned 'Manjunatha H.N and others v. The Union of India and others, the claim of the employees for leave encashment was considered and the appellant was directed to pay the same. The Court had further directed that the same be paid along with interest, if there was any delay in making the said payment. There is no cavil that respondent No.1 is also entitled to the amount due on account of leave encashment. 6. The learned counsel for the appellant has assailed the impugned order only to the extent that the learned Single Judge has directed payment of interest at the rate of 6% per annum to be computed from one month after the date of superannuation of respondent No.1 till the date of payment. He submits that the appellant is constrained for funds and therefore, is finding difficult to make the said payment. - 5 - HC-KAR NC: 2025:KHC:33352-DB WA No. 230 of 2025 7. We find no infirmity with the decision of the learned Single Judge in directing that the said payment should be made along with interest at the rate of 6% per annum for the period of delay. Indisputably, respondent No.1 would be entitled to some compensation for the delay in disbursal of the amounts due to him. 8. The fact that the appellant is currently cash strapped, is not a ground to deprive respondent No.1 of his legitimate dues. 9. The appeal is unmerited and accordingly dismissed. 10. Pending application is accordingly disposed of. Sd/- (VIBHU BAKHRU) CHIEF JUSTICE Sd/- (C M JOSHI) JUDGE KPS List No.: 1 Sl No.: 23