- 1 - HC-KAR CNR: KAHC010607182023 NC: 2026:KHC:42279 WP No. 26699 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE M.G.S. KAMAL WRIT PETITION NO. 26699 OF 2023 (GM-RES) BETWEEN: B. LINGEGOWDA S/O LATE BHUMIGOWDA, AGED ABOUT 73 YEARS, RESIDING AT NO. 2028, HALEHALLI, MANDYA DISTRICT, KARANATAKA - 571 401. …PETITIONER (BY SRI. RAMA RAMACHANDRA IYER, ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY, PUBLIC WORKS PORTS AND INLAND WATER TRANSPORT DEPARTMENT, BENGALURU - 560 001. 2. CHIEF ENGINEER COMMUNICATION AND BUILDINGS, DEPARTMENT OF PUBLIC WORKS, PORTS AND INLAND WATERS, PWD BUILDING, K R CIRCLE, BENGALURU - 560 001. 3. EXECUTIVE ENGINEER PWP AND IWT DIVISION, MANDYA - 571 401. Digitally signed by SUMA B N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR CNR: KAHC010607182023 NC: 2026:KHC:42279 WP No. 26699 of 2023 4. EXECUTIVE ENGINEER PWD DIVISION, MANDYA - 571 401. 5. PRINCIPAL SECRETARY PUBLIC WORKS PORTS AND INLAND WATER, TRANSPORT DEPARTMENT, STATE OF KARNATAKA VIDHANA SOUDHA, BENGALURU - 560 001. …RESPONDENTS (BY SRI. SRINIVAS KUMAR M., HCGP) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE RESPONDENTS TO PAY THE INTEREST AMOUNT DUE TO THE PETITIONER FOR DELAYED PAYMENT AMOUNTING TO A TOTAL OF RS.28,67,827/- (RUPEES TWENTY-EIGHT LAKHS SIXTY SEVEN THOUSAND EIGHT HUNDRED AND TWENTY SEVEN ONLY) ALONG WITH INTEREST AT 18 PERCENT PER ANNUM FROM THE DATE OF DUE PAYMENT TILL THE PRESENT DATE. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.G.S. KAMAL ORAL ORDER 1. Petitioner, who was awarded a work contract by the respondents, is before this Court seeking direction for payment of Rs.28,67,827/- being accrued interest at 18% per annum on the delayed payment of Rs.1.23 crores. - 3 - HC-KAR CNR: KAHC010607182023 NC: 2026:KHC:42279 WP No. 26699 of 2023 2. Learned counsel for the petitioner however submits that though a sum of Rs.1.23 crores has been paid by the respondents, there was a delay in making the said payment which entail payment of accrued interest thereon at 18% p.a. Hence, the petition. 3. Learned counsel for the petitioner relies upon the judgment of the Apex Court in the case of I.K. Merchants Private Limited and others vs the State of Rajasthan and others reported in 2025 LiveLaw (SC) 377. Referring to paragraph 13 of the said judgment, he submits that in terms of provisions of Section 34 of CPC respondent authorities shall pay the commercial rate of interest. 4. Learned HCGP on other hand submits that this is a work contract, amount being paid, interest thereon cannot be calculated in terms of Section 34 CPC, as this is not the outstanding due in terms of any judgment. However, he fairly submits that if a representation is made by the petitioner, the same will be considered for the purpose of payment of interest, if any, as permissible under law. - 4 - HC-KAR CNR: KAHC010607182023 NC: 2026:KHC:42279 WP No. 26699 of 2023 5. Heard and perused the records. 6. It may also be appropriate to refer to the provisions of Interest Act, 1978, which provides for payment of current rate of interest as per the RBI guidelines. 7. Be that as it is. Since the claim of the petitioner is only in respect of payment of interest at 18% p.a., on the alleged delayed payment of Rs.1.23 crores, the question whether the petitioner is entitled for interest at 18% per annum or any other rate, has to be determined by the respondent authorities taking into consideration the days of delay in making the payment. The respondent authority shall keep in mind the judgment rendered in the case of I.K.Merchants supra as well as the provisions of Interest Act, 1978 and arrive at just conclusion. 8. The petitioner shall make representation providing his calculation of interest on delayed payment within 30 days before the respondent No.3. - 5 - HC-KAR CNR: KAHC010607182023 NC: 2026:KHC:42279 WP No. 26699 of 2023 9. Respondent No.3 shall consider the representation to be made as above and pass appropriate orders thereon within 60 days from date of representation. 10. Accordingly petition is disposed of. Sd/- (M.G.S. KAMAL) JUDGE SBN List No.: 1 Sl No.: 41