- 1 - HC-KAR NC: 2026:KHC:18854-DB WA No. 1546 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF APRIL, 2026 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MR. JUSTICE T.M.NADAF WRIT APPEAL NO. 1546 OF 2025 (S-R) BETWEEN: 1. MR. VIJAYANARASIMHA S/O. SHARADHAMMA AND NARASIAH, AGED ABOUT 71 YEARS, RESIDING AT NO. 164, 2ND CROSS, BALAJI LAYOUT, BENGALURU-560 056 …APPELLANT (BY SRI. VYSHAK P.N., ADVOCATE FOR SRI. BHARGAVA D.BHAT., ADVOCATE) AND: 1. KARNATAKA POWER TRANSMISSION CORPORATION LIMITED KAVERI BHAVAN, KG ROAD, GANDHINAGAR, BENGALURU-560 009, REPRESENTED BY ITS MANAGING DIRECTOR 2. MANAGING DIRECTOR, KARNATAKA POWER TRANSMISSION CORPORATION LIMITED, KAVERI BHAVAN, KG ROAD, GANDHINAGAR, BENGALURU-560 009. 3. FINANCIAL ADVISOR, NDCPS, KARNATAKA POWER TRANSMISSION CORPORATION Digitally signed by VASANTHA KUMARY B K Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:18854-DB WA No. 1546 of 2025 LIMITED, KAVERI BHAVAN, KG ROAD, GANDHINAGAR, BENGALURU-560 009. …RESPONDENTS (BY Ms. RAKSHITHA D J., ADVOCATE FOR R1 TO R3) THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO CALL FOR RECORDS IN WP NO.10299/2020 ON THE FILE OF THE HON'BLE HIGH COURT OF KARNATAKA AND SET-ASIDE THE JUDGEMENT AND ORDER DATED 01/04/2025 PASSED BY THE HON'BLE HIGH COURT OF KARNATAKA IN WP NO.10299/2020 AND CONSEQUENTLY DISMISS WP NO.10299/2020, ETC. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE T.M.NADAF ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE D K SINGH) The present intra Court appeal has been filed impugning the judgment and order dated 01.04.2025 passed by the learned Single Judge in W.P.No10299/2020 (S-R), filed by appellant herein. 2. The parties are referred to as per their ranking before the writ Court, for the sake of convenience. - 3 - HC-KAR NC: 2026:KHC:18854-DB WA No. 1546 of 2025 3. Heard Sri Vyshak P.N. learned counsel for the appellant and Ms. Rakshitha D.J., learned counsel for the respondents. 4. The only question which is involved in the present writ appeal is that whether the appellant would be entitled for interest on the withheld gratuity amount from one month after the date of his retirement or from the date when the charges were dropped in respect of the disciplinary proceedings against the appellant. 5. The parties are referred to as per their ranking before the writ Court for the sake of convenience. 6. The petitioner was working as a Managing Director of M/s.Chamundeshwari Electricity Supply Company Limited. He retired from service on attaining the age of superannuation i.e., on 30.06.2013. The gratuity amount became payable within 30 days from the date of retirement. However, the same was not paid to the petitioner on the ground of pending disciplinary - 4 - HC-KAR NC: 2026:KHC:18854-DB WA No. 1546 of 2025 proceedings against him under the Karnataka Electricity Board Employees' Services (Conduct) Regulations, 1988. The charges against the petitioner in the disciplinary proceedings after his retirement came to be dropped on 20.04.2019 and thereafter, the petitioner has been paid the gratuity amount on 10.06.2019 without interest, thus, the petitioner claimed interest on the delayed payment of gratuity amount. 7. The learned Single Judge has confined the interest on delayed payment of the gratuity amount from the day of dropping of the charge i.e., from 20.04.2019 and not with effect from 01.08.2013. 8. The Supreme Court in Chairman-cum-Managing Director, Mahanadi Coalfields Limited versus Rabindranath Choubey reported in (2020) 18 SCC 71 has held that once the employee is exonerated of the charges after his retirement, he would be entitled for payment of interest on the gratuity amount with effect from the date - 5 - HC-KAR NC: 2026:KHC:18854-DB WA No. 1546 of 2025 when it became due and payable. Paragraph 65 of the said judgment which is relevant is extracted hereunder:- "65. To clarify it further that those who were the serving employees, if held guilty on conclusion of the disciplinary proceedings, minor/major penalties as referred to under Rule 27 could be inflicted by the disciplinary authority after recording good and sufficient reason commensurate with the nature of misconduct and in the case of an employee who stood retired/superannuated from service pending disciplinary proceedings, the disciplinary authority has a right to withhold the payment of gratuity pending disciplinary inquiry and if found guilty in the inquiry for the offences/misconduct as indicated in sub-section (6) of Section 4 of the 1972 Act can be recovered from his gratuity payable under Section 4 of the 1972 Act. At the same time, if he is exonerated by the disciplinary authority after retirement/superannuation from service, he shall be entitled for payment of gratuity along with interest for the delay in payment in terms of Section 7(3) and Section 7(3-A) of the 1972 Act." 9. Having considered the judgment cited supra and the submissions of the learned counsels, we are of the view that the petitioner would be entitled for interest on - 6 - HC-KAR NC: 2026:KHC:18854-DB WA No. 1546 of 2025 withheld gratuity amount at the statutory rate with effect from 01.08.2013 till the date of payment of gratuity amount i.e., 10.06.2019. 10. We therefore, allow this appeal and modify the impugned judgment and order 01.04.2025 passed by the learned Single Judge in W.P.No.10299/2020, holding that the petitioner would be entitled for interest at the statutory rate on the delayed payment of gratuity amount between 01.08.2013 to 10.06.2019. Sd/- (D K SINGH) JUDGE Sd/- (T.M.NADAF) JUDGE NG CT:SN List No.: 1 Sl No.: 18