- 1 - HC-KAR NC: 2026:KHC:2758 WP No. 17916 of 2019 C/W WP No. 17915 of 2019 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE WRIT PETITION NO. 17916 OF 2019 (L-PG) C/W WRIT PETITION NO. 17915 OF 2019 (L-PG) IN WP No. 17916/2019 BETWEEN: HMT MACHINE TOOLS LIMITED (MBX) BANGALORE COMPLEX JALAHALLI BANGALORE - 560 031 REPRESENTED BY ITS GENERAL TECHNICAL MANAGER MR. DEVANANDAN P.R. …PETITIONER (BY SRI RAYAPPA Y. HADAGALI, ADVOCATE) AND: 1. MR. B.N. ANANTHA RAGHAVAN S/O. LATE SRI B.R. NAGESHA RAO, RESIDING AT NO.3780 KAVERI ROAD, 2ND MAIN "A" CROSS, GIRINAGAR BANGALORE - 560 085. 2. ASSISTANT LABOUR COMMISSIONER "SHRAM SADAN", 3RD CROSS 3RD MAIN, 2ND PHASE TUMKUR ROAD YESHWANTHPUR BANGALORE - 560 022.] Digitally signed by JAI JYOTHI J Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:2758 WP No. 17916 of 2019 C/W WP No. 17915 of 2019 3. DEPUTY CHIEF LABOUR COMMISSIONER "SHRAM SADAN", 3RD CROSS 3RD MAIN, 2ND PHASE TUMKUR ROAD YESHWANTHPUR BANGALORE - 560 022. …RESPONDENTS (BY SRI AKASH V.T., ADVOCATE FOR R1; SRI M. RAJAKUMAR, AGA FOR R2 AND R3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 24.05.2017 PASSED BY THE CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT, 1972 AND ASSISTANT LABOUR COMMISSIONER [CENTRAL] BANGALORE, RESPONDENT NO.2 IN APPLICATION NO.48[35] 2016-B3, AT ANNEXURE-A AND THE ORDER 15.02.2019 PASSED BY THE APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT, 1972 AND DEPUTY CHIEF LABOUR COMMISSIONER [CENTRAL], BANGALORE, RESPONDENT NO.3 IN APPEAL NO.36 (172) 2018-B1, AT ANNEXURE-B AND ETC. IN WP NO. 17915/2019 BETWEEN: HMT MACHINE TOOLS LIMITED (MBX) BANGALORE COMPLEX JALAHALLI BANGALORE - 560 031 REPRESENTED BY ITS GENERAL TECHNICAL MANAGER MR. DEVANANDAN P.R. ...PETITIONER (BY SRI RAYAPPA Y. HADAGALI, ADVOCATE) AND: 1. MR. M.G. SRINVASA RAO - 3 - HC-KAR NC: 2026:KHC:2758 WP No. 17916 of 2019 C/W WP No. 17915 of 2019 RESIDING AT NO.8, ANUGRAHA MOUNT SENORIA SCHOOL ROAD SWATANTRA YODHARA NAGARA LAGGERE, BANGALORE - 560 058. 2. ASSISTANT LABOUR COMMISSIONER "SHRAM SADAN", 3RD CROSS 3RD MAIN, 2ND PHASE TUMKUR ROAD YESHWANTHPUR BANGALORE - 560 022. 3. DEPUTY CHIEF LABOUR COMMISSIONER "SHRAM SADAN", 3RD CROSS 3RD MAIN, 2ND PHASE TUMKUR ROAD YESHWANTHPUR BANGALORE - 560 022. ...RESPONDENTS (BY SRI AKASH V.T., ADVOCATE FOR R1; SRI M. RAJAKUMAR, AGA FOR R2 AND R3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 24.05.2017 PASSED BY THE CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT, 1972 AND ASSISTANT LABOUR COMMISSIONER (CENTRAL), BANGALORE, RESPONDENT NO.2 IN APPLICATION NO.48(37) 2016-B3, AT ANNEXURE-A AND THE ORDER 15.02.2019 PASSED BY THE APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT, 1972 AND DEPUTY CHIEF LABOUR COMMISSIONER (CENTRAL) BANGALORE, RESPONDENT NO.3 IN APPEAL NO.36(171) 2018- B1 AT ANNEXURE-B AND ETC. THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 4 - HC-KAR NC: 2026:KHC:2758 WP No. 17916 of 2019 C/W WP No. 17915 of 2019 CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE ORAL ORDER Heard learned counsel for petitioner and learned counsel for respondents. 2. Writ petition No.17916/2019 is filed assailing the order dated 24.05.2017 passed in Application No.48(35) 2016-B3 by the Controlling Authority, wherein the Controlling Authority has directed the petitioner-Company to pay simple interest at the rate of 10% per annum w.e.f. from 01.10.2013 to 15.10.2014 on gratuity amount of Rs.5,69,793/- to respondent No.1 and also directed the petitioner-Company to pay the difference amount of gratuity of Rs.17,717/- along with simple interest at the rate of 10% per annum w.e.f. from 01.10.2013 till the date of actual payment. 3. Writ petition No.17915/2019 is filed assailing the order dated 24.05.2017 passed in Application No.48(37) 2016-B3 by the Controlling Authority, wherein the - 5 - HC-KAR NC: 2026:KHC:2758 WP No. 17916 of 2019 C/W WP No. 17915 of 2019 Controlling Authority has directed the petitioner-Company to pay simple interest at the rate of 10% per annum w.e.f. from 01.10.2013 to 15.10.2014 on gratuity amount of Rs.4,80,000/- to respondent No.1 and also directed the petitioner-Company to pay the difference amount of gratuity of Rs.13,200/- along with simple interest at the rate of 10% per annum w.e.f. from 01.10.2013 till the date of actual payment. 4. Aggrieved by the aforementioned orders dated 24.05.2017 in applications No.48(35) 2016-B3 and No.48(37) 2016-B3, the petitioner-Company preferred an appeal in Appeals No.36(172) 2018-B1 and No.36(171) 2018-B1 respectively before the Appellate Authority. The Appellate Authority vide its order dated 15.02.2019 had dismissed the said appeals on the ground of delay. The said orders would also indicate that the Appellate Authority has not gone into the merits of the matter, as the appeals filed beyond 120 days is not maintainable. - 6 - HC-KAR NC: 2026:KHC:2758 WP No. 17916 of 2019 C/W WP No. 17915 of 2019 5. Learned counsel for petitioner would contend that the petitioner-Company was in a difficult financial position. As such, it could not pay the simple interest at the rate of 10% per annum on the gratuity amount and order to pay the difference amount of gratuity along with simple interest at the rate of 10% per annum is not tenable, when the petitioner-Company was in difficult financial position. 5.1 It is also urged that the interim relief granted in terms of the order dated 04.12.1998 be taken into consideration to calculate the basic salary and to calculate the gratuity payable to respondents-workmen. 5.2 Learned counsel for petitioner would refer to Clause (5) of the order dated 04.12.1998, which reads as under: "5) The amount of interim relief will be "sui- generis" viz., it will neither be termed as "Pay" or "Wages" or "Allowance". Accordingly this amount would not count for any service benefit i.e., computation of DA, HRA, CCA, PF, ESI, Annual - 7 - HC-KAR NC: 2026:KHC:2758 WP No. 17916 of 2019 C/W WP No. 17915 of 2019 bonus/Performance Payment, Earned Leave encashment, Cash/VRS Compensation, Pay Fixation, Pension, Gratuity, etc.," 5.3 Learned counsel for petitioner would also refer to Clause (g) of Chapter IV-Wage Policy and Related Matters vide Annexure-D, which reads as under: "g) The amount of interim relief will be sui- generis viz. it will neither be termed as 'Pay' nor 'allowance' nor 'wages'. Accordingly, this amount would not count for any service benefit i.e. computation of house rent allowance, compensatory allowance, over-time allowance, cash compensation, encashment of leave, pay fixation, pension or gratuity, etc." 6. Learned counsel for respondent would also refer to Clause (b) of Chapter IV-Wage Policy and Related Matters vide Annexure-D, which reads as under: "b) The amounts paid as interim relief would be fully adjusted and subsumed in the final pay revision package." - 8 - HC-KAR NC: 2026:KHC:2758 WP No. 17916 of 2019 C/W WP No. 17915 of 2019 7. In W.P.No.17916/2019, it is submitted that by the time the respondent retired, the pay revision had not taken place. The last revision took place in the year 1997 before the retirement of respondent No.1 and subsequently, respondent No.1 retired in the year 2013 and the pay revision took place in 2014. 8. It is noticed that the appeals filed by the petitioner-Company was not in time. Thus, the order of the Controlling Authority has attained finality. 9. Considering the fact that the appeals are not filed in time and the difference amount ordered to be paid is only Rs.17,717/- and Rs.13,200/-, this Court is not inclined to interfere with the aforementioned orders and the contentions relating to eligibility to claim the amount referred to above are not decided on merits. 10. According, I pass the following: ORDER i. These petitions are dismissed; - 9 - HC-KAR NC: 2026:KHC:2758 WP No. 17916 of 2019 C/W WP No. 17915 of 2019 ii. It is made clear that the amount payable to the respondents-workman shall be paid within a period of sixty (60) days from today. If the amount is not paid within sixty (60) days, the petitioner-Company is liable to pay interest on the amount due at the rate of 7% per annum from today till the date of payment; iii. Learned counsel for petitioner apprehends that the other employees may seek similar benefits granted to respondents-workmen; iv. It is made clear that in case other employees approach the Court and raise a dispute, then they have to counter the submission relating to delay and latches to be raised by the petitioner- Company. Sd/- (ANANT RAMANATH HEGDE) JUDGE CPN List No.: 1 Sl No.: 45