- 1 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S.KINAGI WRIT PETITION NO. 12745 OF 2022 (S-RES) BETWEEN: 1. KARNATAKA HANDLOOM DEVELOPMENT CORPORATION RETIRED EMPLOYEES WELFARE ASSOCIATION (R) NO.111 3RD E CROSS, NETHAJINAGAR NEAR JALAHALLI CROSS, BENGALURU-560057 REPT. BY ITS JOINT SECRETARY B S GURUSWAMY S/O SHIVABASAPPA AGED ABOUT 66 YEARS REGISTERED UNDER KSR ACT 2. P MANJUNATHA S/O LATE PILLAPPA AGED ABOUT 62 YEARS, R/AT NO.36, 2ND MAIN ROAD, AMBHABHAVANINAGARA VIDYARANYAPURA POST BENGALURU-560097 3. K RAMAMOHAN RAJU S/O KALYANASUNDARA RAJU AGED ABOUT 60 YEARS, R/AT NO.59, JAYANNA LAYOUT Digitally signed by SHILPABAI S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 ANEKAL BENGALURU RURAL BENGALURU-562106 4. N RAVINDRANATH S/O K NANJUNDAIAH AGED ABOUT 62 YEARS, R/AT NO.56, RAVI KALA NILAYA CHOWDESHWARI LAYOUT RAMOHALLI POST KENGERI HOBLI BENGALURU-560060 5. B T SHANTHARAJU S/O LATE THIMMAIAH AGED ABOUT 62 YEARS R/AT NO.10/1, SUKHA NIVAS MIRZA ROAD, ANEKAL TOWN, BENGALURU RURAL BENGALURU-562106 6. K G JAGANNATHA S/O K R GOVINDA SHETTY AGED ABOUT 62 YEARS, R/AT NO.59, 1ST MAIN ROAD, 2ND CROSS LAKSHMI LAYOUT ABBIGERE, BENGALURU-560090 7. RAMACHANDRAPPA N TADAKANAHALI S/O NAGAPPA AGED ABOUT 61 YEARS, R/AT NO.1675/60, BANASHANKARI NILAYA, KIRUVADI LAYOUT NITUVALLI NEW EXTENSION, DAVANAGERE-577004 8. M R MAHESH S/O B M RAMAIAH AGED ABOUT 62 YEARS, R/AT NO.168/D, 1ST BLOCK, - 3 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 3RD PHASE BANASHANAKRI 3RD STAGE BENGALURU-560085 9. T R NARYANASWAMY S/O LATE T B RAMAIAH AGED ABOUT 62 YEARS, R/AT NO.31, 1ST CROSS, NAVYA NAGAR JAKKUR, BENGALURU-64 10. I M KRISHNAMURTHY S/O LATE G MUNIVENKATAPPA AGED ABOUT 62 YEARS, R/AT NO.20/27, 18TH CROSS, 8TH MAIN, N S PALYA, B T M LAYOUT, 2ND STAGE, BENGALURU-560076 11. N BASAVARAJU S/O C NARAYANAPPA AGED ABOUT 64 YEARS, R/AT 1/68, BRAHMIN STREET HOSKOTE, BENGALURU RURAL BENGALURU-562114 12. N VASANTHA KUMAR S/O LATE NARAYANAPPA AGED ABOUT 62 YEARS, R/AT NO.133 BIKKANAHALLI ANDENAHALLI POST SARJAPURA HOBLI ANEKAL TALUK BENGALURU RURAL-562125 13. R MOHAN S/O K RAMESH AGED ABOUT 61 YEARS, R/AT NO.131, 4TH BLOCK SIR M V LAYOUT BENGALURU-560056 - 4 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 14. B V RAVINDRANATH S/O LATE VENKATARAMANA RAO AGED ABOUT 64 YEARS, R/AT NO.1893, C BLOCK, 21ST CROSS, 2ND MAIN, SAHAKARA NAGARA BENGALURU-560092 15. ASWINI KUMAR S/O LATE B M SHIVARUDRAIAH AGED ABOUT 63 YEARS, R/AT VILLA NO.41 SRI GANESH KRUPA C K ADITYA LAYOUT, SURAGACHIKKANAHALLI INDALAVADI CROSS ANEKAL JIGANI ROAD, BENGALURU-562106 16. K DILEEP KUMAR SHETTY S/O K M CHANDRA SHEKAR SHETTY AGED ABOUT 63 YEARS, R/AT NO.104, 1ST FLOOR, 4TH D BLOCK, RAJAJINAGAR 2ND STAGE BENGALURU-560010 17. A MUNISWAMY S/O LATE APPA SWAMY AGED ABOUT 64 YEARS R/AT NO.50, 2ND CROSS, RATHNAMMA LAYOUT MANORAYANAPALYA R T NAGAR POST BENGALURU-560032 18. ASHIM GHOSH S/O LATE ARABINDA GHOSH AGED ABOUT 60 YEARS, R/AT C/O SHASHIDHAR DEVEGOWDA COMPOUND, OLD KEB ROAD, BAPUJI CIRCLE - 5 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 KADUGODI BENGALURU-560067 19. S T YOGESH S/O T P THIMMAIAH SHETTY AGED ABOUT 63 YEARS, R/AT KALLURU VILLAGE AND POST GUBBI TALUK TUMAKURU -572220 20. S BALAMBIKA W/O T BALAKRISHNA AGED ABOUT 62 YEARS, R/AT NO.38/36, 17TH MAIN, M C LAYOUT, BENGALURU-560040 21. M SIDDESHAPPA S/O D B MAHESHWARAPPA AGED ABOUT 64 YEARS, R/AT NO.583/3, 6TH MAIN ROAD, P G LAYOUT, DAVANAGRE-577002 22. NIYAZ AHMED S/O S ABDUL RASHEED AGED ABOUT 64 YEARS, R/AT NO.169/1, 5TH CROSS, KADIRENAHALLI J P NAGAR, BENGALURU-560078 23. FAYAZ AHMED S/O ABDUL SAMEEL AGED ABOUT 64 YEARS R/AT NO.316, 7TH CROSS, 2ND MAIN, J H B C S LAYOUT J P NAGAR POST BENGALURU-560078 24. K L KUMAR S/O K L LAKSHMIPATI RAO AGED ABOUT 64 YEARS R/AT NO.68, BALAJI NIVAS, - 6 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 SOUTH END ROAD, BENGALURU-560004 25. A GOPALA KRISHNA S/O D M ARASAPPA AGED ABOUT 63 YEARS R/AT NO.66, 1ST MAIN, GANGADHARAPURA DODDABALLAPURA, BENGALURU 26. M SHASHIKALA W/O K S GANESH AGED ABOUT 62 YEARS, R/AT NO.17, 5TH MAIN, RAGHUVANAHALLI KANAKAPURA ROAD, BENGALURU-560109 27. G J MANJAPPA S/O LATE JAWAR SHETTY AGED ABOUT 64 YEARS, R/AT NO.400, 2ND D MAIN, 11TH BLOCK, NAGARABHAVI BENGALURU-560072 28. K RAMANNA S/O KAMANAIAH AGED ABOUT 61 YEARS, R/AT NO.66, 5TH CROSS, 7TH MAIN, SUBBANNA GARDEN VIJAYANAGAR BENGALURU-560040 29. B G BELLIYAPPA S/O GANAPATHI AGED ABOUT 63 YEARS, R/AT NO.117, 1ST FLOOR, 1ST MAIN ROAD, PEENYA 2ND STAGE BENGALURU-560058 - 7 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 30. N AMARESHA S/O K V NAGARAJA SHETTY AGED ABOUT 62 YEARS, R/AT KALIKAMBA NILAYA NO.134, 1ST E CROSS, RAMAIAH EXTENSION, PEENYA 2ND SAGE BENGALURU-560058 31. YADAVENDRANAIK S/O LATE D ESHWARAIAH, AGED ABOUT 61 YEARS, R/AT YEKKALA KATTE VILLAGE, AAGALAWADI HOBLI, SHIVAPURA POST, GUBBI TALUK, TUMAKURU 32. SHIVAIAH S/O LATE THIRUMALA GIRIYAPPA, AGED ABOUT 61 YEARS, R/AT NO.5, HANUMANTHASAGARA, MADANAYAKANAHALLI POST, DASANAPURA HOBLI, BENGALURU 562162. 33. K NAGARAJAIAH S/O LATE KEMPANNA, AGED ABOUT 62 YEARS, R/AT GOPASANDRA VILLAGE, TEKAL POST, MALUR TALUK, KOLAR DISTRICT 563137. 34. S SHIVALINGEGOWDA S/O LATE SIDDEGOWDA, AGED ABOUT 64 YEARS, R/AT NO.117/1, MAYAMMA NILAYA, 2ND CROSS, T DASARAHALLI, TUMAKURU ROAD, BENGALURU-56057. - 8 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 35. T VENKATESH S/O LATE THIMMAIAH, AGED ABOUT 61 YEARS, R/AT ULLEGOWDANA HALLI, NELAMANGALA TALUK, BENGALURU-562123. 36. M V RAMACHANDRA S/O M.V. UGRAIAH, AGED ABOUT 62 YEARS, R/AT NO.230, 18TH A CROSS, PIPELINE ROAD, SUNKADAKATTE, VISHWANEEDAM POST, BENGALURU-560091. 37. S DORESWAMY AHCAR S/O LATE M SOMACHAR, AGED ABOUT 64 YEARS, R/AT NO.5, 6TH CROSS, SANJEEVINI NAGAR, HEGGANAHALLI CROSS, VISHWANEEDAM POST, BENGALURU-560091. 38. K PAPANNACHAR S/O LATE KEMPACHAR, AGED ABOUT 62 YEARS, R/AT NO.12, 5TH MAIN ROAD, HEGGANAHALLI CROSS, VISHWANEEDAM POST, BENGALURU-560091. 39. K MOHAN RAO S/O LATE VENKOJI RAO, AGED ABOUT 62 YEARS, R/AT NO.13, KGSS LAYOUT, RAJAGOPALA NAGARA, BENGALURU-560058. 40. L H BASAVALINGA MURTHY S/O LATE L.H.VEERABASAPPA, AGED ABOUT 62 YEARS, - 9 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 R/AT NO.38, 4TH CROSS, SHIVANNA LAYOUT, HALAGEVADDERAHALLI, R.R.NAGAR, BENGALURU-560098. 41. IMAM SABI S/O LATE HUSSAIN SABI, AGED ABOUT 63 YEARS, R/AT NO.330, E-215, MASJID CROSS ROAD, YELAHANKA, BENGALURU-560064. 42. K S PURUSHOTHAMA S/O LATE SAMPANGI NAIDU, AGED ABOUT 62 YEARS, R/AT NO.20/2, VENKATA SAMURDDI NIVASA, 2ND FLOOR, 2ND CROSS, B MUNISWAMAPPA LAYOUT, AMRUTHANAGAR, BENGALURU 560092. 43. K KRISHNAMURTHY S/O LATE KAREDAPPA KUNER, AGED ABOUT 63 YEARS, R/AT NO.10/1, 9TH E MAIN, BYRAVESHWARANAGAR, NAGARABHAVI MAIN ROAD, BENGALURU-560072. 44. S K GOWDAR S/O KERIYAPPA, AGED ABOUT 63 YEARS, R/AT NO.114, 1ST CROSS, 2ND MAIN, NANDI BADAVANE, NAVANAGARA, HUBLI-580025. 45. R R PADAKI S/O RAGHAVENDRA PADAKI, AGED ABOUT 62 YEARS, - 10 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 R/AT NO.17, SRIRAMNAGARA, 11TH CROSS, MUTAGA POST, BELAGAVI 591124. 46. V R KULAKARNI S/O RAMARAO KULAKARNI, AGED ABOUT 64 YEARS, R/AT MIG 306-A, 15TH CROSS, NAVANAGARA HUBLI 580025. 47. M M BAIG S/O MUNAVAR BAIG, AGED ABOUT 63 YEARS, R/AT NO.1131/4, 2ND CROSS, JABIB LAND, HUBLI-580020. 48. A T LAKKUNDI S/O THOTAPPA LAKKUNDI, AGED ABOUT 63 YEARS, R/AT 1ST CROSS, SUB JAIL ROAD, SAIDAPURA, DHARWAD 580008. 49. H D WALIKAR S/O DESAYAPPA, AGED ABOUT 64 YEARS, R/AT NO.426, EWS, 1ST FLOOR, BASAVEHSWARANAGARAM, HUBLI-580025. 50. S N DESHPANDE S/O NARAYANA RAO, AGED ABOUT 63 YEARS, R/AT NO.269, SRI NIVASA, KANAKADASA BADAVANE, VIJAYAPURA 586109. 51. S M MADDIN S/O MALLIKARJUNA, AGED ABOUT 62 YEARS, R/AT NO.9, 3RD CROSS, - 11 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 SANMARGA NAGAR, GOKULA ROAD, HUBLI 580027. 52. V G MADANABHAVI S/O GURUPADAPPA, AGED ABOUT 61 YEARS, R/AT 1ST CROSS, 2ND MAIN, BEERESHWARANAGAR, RANEBENNUR, HAVERI-581115. 53. V N SURENDRA S/O LATE V. NARAYANAPPA, AGED ABOUT 61 YEARS, R/AT 1ST CROSS, 2ND MAIN PAMPANAGAR, B BLOCK, HAMPIKATTE ROAD, RANEBENNUR, HAVERI 581115. 54. S S CHITTARAGI S/O SOMAPPA SAHEB GOWDA, AGED ABOUT 63 YEARS, R/AT VIDYANAGARA, MUDDEBIHALA, VIJAYAPURA 586109. 55. B T DHUPAD S/O THUKARAMAPPA, AGED ABOUT 63 YEARS, R/AT VIJAYALAKSHMI NILAYA, BASAVESHWARA CIRCLE, ILKAL, BAGALKOTE 587125. 56. MD. USMAN S/O SHAIK MAUDDIN, AGED ABOUT 64 YEARS, R/AT 5-2-13, QUADIA, GRAND, AKMAL PASHA COLONY, BIDAR 585401. 57. M.R. HARIJAN S/O RAMACHANDRAPPA, - 12 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 AGED ABOUT 63YEARS, R/AT HIREPADASALAGI(V AND (P), JAMAKANDI TALUK, BAGALKOT 587125. 58. RAMESH SHEDABAL S/O APPAYYAPPA, AGED ABOUT 61 YEARS, R/AT BASAVANAGARA, ASANGI ROAD, BANAHATTI POST, RABAKAVI BANAHATTI TALUK, BAGALKOTE 587125. …PETITIONERS (BY SRI. SUNDARESH H C., ADVOCATE) AND: 1. UNION OF INDIA REPTD BY ITS SECRETARY, MINISTRY OF LABOUR AND EMPLOYMENT, SHRAM SHAKTI BHAVAN, RAFI MARG, NEW DELHI 110001. 2. STATE OF KARNATAKA BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF COMMERCE AND INDSUTRIES VIKASA SOUDHA, BANGALORE 560001. 3. MANAGING DIRECTOR KARNATAKA HANDLOOM DEVELOPMENT, CORPORATION LTD., HEAD OFFICE, PRIYADARSHINI NEKARA COLONY, VIDYANAGAR, HUBBALLI 580031. …RESPONDENTS (BY SRI. POOJAPPA J., CGC FOR R1 SMT. MAMATHA SHETTY, AGA FOR R2 SRI. MANU D GOWDA, ADVOCATE FOR SRI. D NAGARAJ, ADVOCATE FOR R3) - 13 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE COMMON REPLY LETTER ISSUED BY R3 BEARING NO.KAKAIANI.VYA.NI.ADMINISTRATION.PRAKA.2022-23/152 DTD 18.04.2022 AS PER ANNEXURE-K. DIRECT THE RESPONDENT TO CONSIDER THE REPRESENTATIONS FILED BY THE 1ST PETITIONERS DTD 10.06.2022 AS PER ANNEXURE-E TO ENHANCE THE GRATUITY AMOUNT PAYABLE TO THE EMPLOYEES OF R3 CORPORATION UPTO CEILING LIMITS OF RS.20,00,000/- AS PER PAYMENT OF GRATUITY ACT, 1972 BY ADAPTING THE NOTIFICATION ISSUED BY THE R1 DTD 29.03.2018 AS PER ANNEXURE-C. DIRECT THE R2 TO APPROVE THE PROPOSAL SUBMITTED BY THE R3 DTD 21.07.2020 TO ENHANCE THE PAYMENT OF GRATUITY AMOUNT PAYABLE TO ITS EMPLOYEES AS PER ANNEXURE-G. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI ORAL ORDER The petitioners filed this petition seeking the following reliefs: “a) Issue writ in the nature of Certiorari to quash the common reply letter issued by 3rd respondent bearing No.KaKaiANi:VyaNi:Administration: PraKa:2022-23/152, dated: 18-04-2022 as per ANNEXURE-K. b) Issue writ in the nature of mandamus directing the respondent to consider the representations filed by the 1st petitioners dated: 10-06-2022 as per - 14 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 ANNEXURE-E, to enhance the gratuity amount payable to the employees of 3rd respondent corporation upto ceiling limits of Rs.20,00,000/- as per payment of gratuity Act, 1972 by adapting the notification issued by the 1st respondent dated:29- 03-2018 as per ANNEXURE-C. c) Issue writ in the nature of mandamus directing the 2nd respondent to approve the proposal submitted by the 3rd respondent dated:21-07-2020 to enhance the payment of gratuity amount payable to its employees as per ANNEXURE-G. d) Pass such other order or direction as this Hon’ble Court deems fit on the fact and circumstances of the case in the interest of justice and equity.” 2. Brief facts leading rise to the filing of this petition are as follows: 2.1. Petitioner No.1 is a society registered under the Societies Registration Act with the object of taking care of the welfare of the retired employees and to resolve the grievance of the retired employees of respondent No.3- Corporation. Petitioner Nos.2 to 58 are the retired employees of respondent No.3-Corporation. The - 15 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 Government of India amended the Payment of Gratuity Act, 1972 by Amendment Act No.15 of 2010, enhancing the gratuity amount from ₹3,50,000/- to ₹10,00,000/- as per the notification dated 17.05.2010. As per the amendment of Gratuity Act, respondent No.3, in its 192nd board meeting in subject No.9 held on 31.08.2010, had decided to adopt the amendment of Payment of Gratuity Act to its employees with effect from 04.09.2010. The Government of India again amended the said Act. As per the amendment to the Gratuity Act, respondent No.3 issued an official order dated 04.09.2010 stating that the employees of the Corporation are covered under the Payment of Gratuity Act, 1972. The said amendment came into force with effect from 04.09.2010. The Government of India by its notification dated 29.03.2018, amended the Payment of Gratuity Act and specified that the amount of gratuity payable to an employee under the said Act shall not exceed ₹20,00,000/-. The said amendment was adopted by respondent No.2 as per the Government order - 16 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 dated 23.06.2018. The petitioners are covered under the Payment of Gratuity Act. The petitioners have submitted a representation to respondent No.3 to extend the benefit of enhancement of gratuity amount by adopting the Government of India notification dated 29.03.2018 to its employees. Respondent No.3, in its board meeting, decided to enhance the gratuity amount to its employees upto the ceiling limits of ₹20,00,000/- as per the Payment of Gratuity Act and the proposal was submitted to respondent No.2 to seek its approval. Respondent No.2 has issued an endorsement stating that the financial condition of the Corporation is not good and the proposal can be revisited if and when the financial status of the Corporation improves. Hence, this petition. 3. Respondent No.3 filed a statement of objections admitting the registration of petitioner No.1-Society and also petitioner Nos.2 to 58 were the employees of respondent No.3. It is also admitted that, the Government of India has amended the Payment of Gratuity Act by - 17 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 issuing a notification. The only defence raised by respondent No.3 is that respondent No.3 has no financial capacity to pay the gratuity amount. Hence, prays to dismiss the petition against respondent No.3. 4. Heard the arguments of learned counsel for the petitioners, learned CGC for respondent No.1, learned AGA for respondent No.2 and learned counsel for respondent No.3. 5. Learned counsel for the petitioners submits that, petitioner No.1 is a society registered under the Societies Registration Act. The object of establishing the Society is to see the welfare of the retired employees. He submits that, petitioner Nos.2 to 58 are the retired employees of respondent No.3. He submits that, the Government of India has issued two notifications enhancing the ceiling limit of gratuity amount payable. He submits that, respondent No.3 has adopted the notifications issued by the Government of India and passed the resolution. He submits that, after having - 18 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 accepted the notifications, respondent No.2 has refused to enhance the ceiling limit of gratuity amount to ₹20,00,000/-. The action of respondent No.2 is arbitrary, contrary and is in violation of the Payment of Gratuity Act. Hence, on these grounds, he prays to allow the writ petition. 6. Per contra, learned AGA for respondent No.2 and learned counsel for respondent No.3 submit that, the respondent No.3 is running under loss and they are unable to pay the gratuity as claimed by the petitioners. Whenever there is an improvement in the financial condition of respondent No.3, respondent Nos.2 and 3 will revisit and consider the claim of the petitioners. Hence, on these grounds, pray to dismiss the writ petition. 7. Perused the records and considered the submissions of the learned counsel for the parties. 8. It is an undisputed fact that petitioner No.1 is registered under the Societies Registration Act and the - 19 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 object of the Society is to see the welfare of the retired employees of respondent No.3-Corporation. Admittedly, petitioner Nos.2 to 58 have retired from the service. The Government of India issued a notification on 17.05.2010 amending the Payment of Gratuity Act by Amendment Act No.15 of 2010, whereby it had enhanced the gratuity amount from ₹3,50,000/- to ₹10,00,000/- and respondent No.3 has passed a resolution in its 192nd board meeting in subject No.9 held on 31.08.2010 deciding to adopt the Amendment of Payment of Gratuity Act to its employees with effect from 04.09.2010. Respondent No.3 issued an official order on 04.09.2010 stating that the employees of the Corporation are covered under the Payment of Gratuity Act, 1972. Respondent No.3 has adopted the amendment made by the Government of India under the Payment of Gratuity Act and enhanced the maximum limit upto ₹10,00,000/-. Again, the Central Government has, vide notification dated 29.03.2018, amended the Payment of Gratuity Act enhancing the gratuity amount from - 20 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 ₹10,00,000/- to ₹20,00,000/- not exceeding ₹20,00,000/- . The said amendment was adopted by respondent No.2 vide Government order dated 23.06.2018 and the employees of respondent No.3 are covered under the said amendment under the Payment of Gratuity Act. On the basis of the Government Order dated 23.06.2018 and notification dated 29.03.2018 issued by the Government of India, the petitioners have submitted the representation to respondent No.3 requesting respondent No.3 to give effect to the Government order and the Government of India’s notification. Respondent No.2 issued an endorsement stating that respondent No.3 is running under a loss and they are not in a position to enhance the gratuity amount upto ₹20,00,000/-, and it is also stated that when the financial condition of respondent No.3 improves, they will consider the claim of the petitioners. 9. Respondent No.3 has not produced any records to show that respondent No.3 is running under a loss. Merely, the Corporation running under loss is not a ground - 21 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 to reject the claim of the petitioners. The right has been vested in the petitioners by virtue of an amendment to the Payment of Gratuity Act by notification dated 29.03.2018. The said amendment having been adopted by respondent No.2, respondent No.2 cannot deny the claim of the petitioners on the ground that respondent No.3 is in a financial distress. The reasons assigned by respondent No.2 in rejecting the claim of the petitioners are arbitrary and erroneous, and is in violation of the provisions of the Payment of Gratuity Act. 10. In view of the above discussion, I proceed to pass the following: ORDER i. The writ petition is allowed; ii. The impugned common reply dated 18.04.2022 vide Annexure-K is hereby quashed; iii. Respondent Nos.2 and 3 are directed to re-consider the representation filed by petitioner No.1 dated 10.06.2022 as per Annexure-E to enhance the gratuity amount - 22 - HC-KAR NC: 2026:KHC:31001 WP No. 12745 of 2022 payable to the employees of respondent No.3- Corporation upto the ceiling limit of ₹20,00,000/- as per the Payment of Gratuity Act, 1972 by adopting the notification issued by respondent No.1 dated 29.03.2018 within a period of one month from the date of receipt of a certified copy of this order; iv. Pending IA(s), if any, shall stand disposed of. Sd/- (ASHOK S.KINAGI) JUDGE PA | List No.: 1 Sl No.: 3