- 1 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 3RD DAY OF FEBRUARY 2026 BEFORE THE HON'BLE MRS JUSTICE K.S.HEMALEKHA WRIT PETITION NO. 100742 OF 2026 (S-KSRTC) BETWEEN: 1. SHRI. SIDDAPPA SIDDARAYAPPA KUCHANUR, AGE: 64 YEARS, OCE: RETIRED, R/O: H.NO. 3441, BASAVA BADAVANE, RAMTEERTH NAGAR, BELAGAVI- 590015. 2. SHRI. JAYAPAL RAMACHANDRAPPA VAJRANGI, AGE: 63 YEARS, OCC: RETIRED, R/O: H.NO.1223, NEW VAIBHAV NAGAR, SATISH COLONY, BELAGAVI - 590010. 3. SHRI. S.N.GHOTE, AGE: 64 YEARS, OCC: RETIRED, R/O: SV NO. 39/41, VAIBHAV NAGAR, PLOT NO.11, BEHIND CHURCH, VAIBHAV NAGAR, BELAGAVI - 590010. 4. SHRI. PARASHURAM BASAVANTH REDEKAR, AGE: 63 YEARS, OCC: RETIRED, R/O: H.NO. 389, 4TH CROSS, KANGRALI KH, BELAGAVI-590010. 5. SHRI. SIDDAYYA NINGAYYA STAVARMATH, AGE: 64 YEARS, OCC: RETIRED, R/O: VEERESHWARA TEMPLE ROAD, NALATWADA, MUDDEBIHAL, VIJAYPUR-586124. 6. SHRI. BALACHANDRA MAHADEV TERDALKAR, AGE: 61 YEARS, OCC: RETIRED, R/O: II ND LANE, SHIVAJI NAGAR, BELAGAVI-590016. GIRIJA A. BYAHATTI Digitally signed by GIRIJA A. BYAHATTI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2026.02.07 10:07:08 +0530 - 2 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 7. SHRI. ABDULRASHID ABDULGAFAR SHAIKH, AGE: 61 YEARS, OCC: RETIRED, R/O: PLOT NO. 71, CTS NO.7002, ANJANEYA NAGAR, BELAGAVI - 590016. 8. SHRI. SHRISHAILAPPA S. DINNI, AGE: 62 YEARS, OCC: RETIRED, R/O: INDAL NAGAR, SINDHDI, H.NO. 3, BELAGAVI- 590010. 9. SHRI. VINOD SADASHIV KULKARNI, AGE: 62 YEARS, OCC: RETIRED, R/O: H.NO.23A/102, VINAYAK GALLI, SAMBHAJI NAGAR, MADHAVPUR, VADAGOAN, BELAGAVI- 590005. 10. SHRI. AKBAR BADASHAHA MUTTANI, AGE: 64 YEARS, OCC: RETIRED, R/O: KOCHARI, HUKKERI, BELAGAVI- 591309. 11. SHRI. TUKARAM LALSINGH LAMANI, AGE: 64 YEARS, OCC: RETIRED, R/O: JARAPUR PET, BANGAR GALLI, VIJAYAPUR- 586101. 12. SHRI. VASANAGOUDA SHIVANAGOUDA PATIL, AGE: 62 YEARS, OCC: RETIRED, R/O: BALIGATTI ONI, SUTAGATTI, DESHNUR, BELAGAVI-591147. 13. SHRI. SHRIPAL MALLAPPA HOLKAR, AGE: 62 YEARS, OCC: RETIRED, R/O: H. NO. 345/B4, AMBEDKAR GALLI, MAJAGAVI, BELAGAVI- 590008. 14. SHRI. SURESH HANUMANTHRAO KULAKARNI, AGE: 64 YEARS, OCC: RETIRED, R/O: 289/3B/1, PLOT NO.17, SHRINAGAR, NEAR GRBC, LAKSHMI BADAVANE, GOKAK- 591307. - 3 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 15. SHRI. ASHOK YASHWANT KAGWADE, AGE: 64 YEARS, OCC: RETIRED, R/O: ANGOL, BELAGAVI- 590006. 16. SHRI. SHIVAPUTRA BHIMRAO HEGDE, AGE: 63 YEARS, OCC: RETIRED, R/O: H. NO. 2294, MAHANTESH NAGAR, MALMARUTI BADAVANE, BELAGAVI- 590016. 17. SHRI. SHEKHARBABU BHEEMARAI RACHANNAVER, AGE: 64 YEARS, OCC: RETIRED, R/O: KARADIGUDDI, BELAGAVI - 591103. 18. SHRI. SHRISHAIL PHASALKAR, AGE: 62 YEARS, OCC: RETIRED, R/O: PATRIBASAVESHWARA NAGAR, BAILHONGAL, BELAGAVI-591102. 19. SHRI. MALLANAGOUDA NINGANAGOUDA PATIL, AGE: 64 YEARS, OCC: RETIRED, R/O: H. NO. 19, SAIDAPUR, NEAR GOUDER ONI, KC PARK, DHARAWAD -580008. 20. SHRI. SHIVAJI DHULAPPA GURAV, AGE: 67 YEARS, OCC: RETIRED, R/O: 645, ANUGRAHA NIVASA, RAMATIRTHA NAGAR, BELAGAVI- 590015. 21. SHRI. SHAMSHUDDIN JANGLISAB KHAJI, AGE: 64 YEARS, OCC: RETIRED, R/O: PLOT NO.16, RS NO.1217, AMAN NAGAR, BELAGAVI-590016. 22. SHRI. MAHAVEER B. JINNABASAPPANAVAR, AGE: 64 YEARS, OCC: RETIRED, R/O: NILAJI STOP, MUTTAGA, OPP. AIRFORSE MERS, BELAGAVI -591124. 23. SHRI. BABURAI GURUBALA LALSANGI, AGE: 62 YEARS, OCC: RETIRED, R/O: CHAAVADIHAL, INDI, BIJAPUR-586209. - 4 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 24. SHRI. SAMBHA BHIMA MITHARE, AGE; 62 YEARS, OCC: RETIRED, R/O: CHIKKODI, BELAGAVI -591201. 25. SHRI. MUNAVARKHAN GUDAKHAN PATHAN, AGE: 62 YEARS, OCC: RETIRED, R/O: PLOT NO.26, 2ND CROSS, AZAM NAGAR, BELAGAVI-590010. 26. SHRI. MAHANTAYYA RACHAYYA CHIKMATH, AGE: 61 YEARS, OCC: RETIRED, R/O: H. NO. 862/7, SIDDESHWARA NAGAR, KANABURGI, BELAGAVI- 590015. 27. SHRI. LAKKAPPA APPOSHI BARKER, AGE: 62 YEARS, OCC: RETIRED, R/O: H. NO. 45, SALAPUR, RAMDURGA, BELAGAVI - 591123. 28. SHRI. VITTAL IRAPPA KAMBALE, AGE: 62 YEARS, OCC: RETIRED, R/O: H. NO. 172, AMBEDKAR GALLI, SAVAGAV, BELAGAVI- 590001. 29. SHRI. VITTAL GOVINDAPPA MIKALI, AGE: 63 YEARS, OCC: RETIRED, R/O: PO. MUKKAM, YARAGATTI, SAVADATTI, BELAGAVI-591129. 30. SHRI. MARUTI GOVIND SANADI, AGE: 62 YEARS, OCC: RETIRED, R/O: H. NO. 159/V, NEAR OLD WATER TANK, CHANNAMMA HOUSING COLONY, SHRINAGAR, BELAGAVI- 590010. - 5 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 31. SHRI. RAMAKRISHNA VENKAPPA PASTE, AGE: 62 YEARS, OCC: RETIRED, R/O: ANANDA KRISHNA NAJARE, TEGGINA GALLI, VADAGAON, BELAGAVI- 590005. …PETITIONERS (BY SRI. SOURABH HEGDE, ADVOCATE) AND: THE DIVISION CONTROLLER NWKRTC, CHIKKODI DIVISION, CHIKKODI, DIST: BELAGAVI-591201. …RESPONDENT (BY SRI. M.M.KHANNUR, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT OF MANDAMUS OF POSITIVE NATURE, DIRECTING THE RESPONDENT TO PAY THE TERMINAL BENEFITS, I.E. LEAVE ENCASEMENT BENEFIT, INTEREST (AT 12%) AFTER CONSIDERING THE REPRESENTATION MADE BY THE PETITIONERS DATED 09.12.2024, 01.10.2024, 02.12.2024, 06.12.2024, 07.12.2024, 05.12.2024, 22.01.2025, 23.01.2025, 16.08.2025 AND 18.11.2024 (TOTALLY 31) WHICH ARE MARKED AS ANNEXURE-B TO B-30 AND ETC. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE MRS JUSTICE K.S.HEMALEKHA - 6 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 ORAL ORDER 1. The petitioners retired from services of the respondent-Corporation on attaining the age of superannuation. The leave encashment payable to the petitioners was not released on the date of their retirement and paid after a delay of about 10 months without payment of any interest. Questioning their entitlement of interest on delayed payment of terminal benefits, the petitioners are before this Court 2. The details of retirement of the petitioners from service is as under: Sl. No. Name of the Petitioner Date of Retirement Date of Representatio n Date of leave Encashment given 1. Siddappa Siddarayappa Kuchanur 31-05-2023 09-12-2024 04-04-2024 2. Jayapal Ramachandrap p Vajrangi. 30-06-2023 09-12-2024 23-05-2024 3. S.N.Ghote. 30-09-2023 09-12-2024 28-06-2024 4. Parashuram Basavanth Redekar 30-11-2019 04-12-2024 04-01-2022 - 7 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 5. Siddayya. Ningayya. Stavarmath. 30-04-2020 23-01-2025 05-07-2022 6. Balachandra. Mahadev. Terdalkar. 30-11-2019 06-12-2024 04-01-2022 7. Abdulrashid. Abdulgafar. Shaikh. 28-02-2021 05-12-2024 30-0-2023 8. Shrishailappa. S.Dinni 31-03-2023 05-12-2024 24-05-2024 9. Vinod. Sadashiv. Kulkarni. 10-07-2018 10-07-2018 27-11-2019 10. Akbar. Badashaha. Muttani. 30-09-2020 16-08-2025 24-08-2022 11. Tukaram. Lalsingh. Lamani. 31-05-2019 16-08-2025 18-03-2021 12. Vasanagoud Shivanagoud Patil. 30-06-2023 05-12-2024 23-05-2024 13. Shripal. Mallappa. Holkar. 31-05-2023 05-12-2024 24-05-2024 14. Suresh. Hanumanthrao Kulakarni. 31-07-2020 22-01-2025 31-03-2023 15. Ashok. Yashwant. Kagwade. 31-06-2020 16-08-2025 08-09-2022 16. Shivaputra. Bhimrao. Hegde. 31-05-2020 06-08-2025 05-07-2022 22-12-2024 - 8 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 17. Shekharbabu Bheemarai. Rachannaver. 29-02-2020 10-08-2025 28-04-2022 18. Shrishail. Phasalkar 31-05-2021 16-08-2025 29-03-2023 19. Mallanagouda. Ninganagouda. Patil. 31-05-2021 16-08-2025 22-12-2024 20. Shivaji. Dhulappa. Gurav. 31-11-2018 16-08-2025 17-07-2020 21. Shamshuddin. Janglisab.Khaji. 31-08-2023 16-08-2025 09-07-2024 22. Mahaveer.B. Jinnabasappan avar 31-07-2020 09-12-2024 29-03-2023 23. Baburai. Gurubala. Lalsangi. 30-06-2019 02-12-2024 17-03-2021 24. Sambha. Bhima. Mithare. 30-04-2020 09-2-2025 05-07-2022 25. Munavarkhan. Gudakhan. Pathan. 31-05-2018 09-12-2025 26-07-2019 26. Mahantayya. Rachayya. Chikmath. 31-05-2023 06-12-2025 17-04-2024 27. Lakkappa. Apposhi. Barker. 31-05-2023 07-12-2025 03-04-2024 28. Vittal. Irappa. Kambale. 31-05-2023 05-12-2025 23-05-2024 - 9 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 29. Vittal. Govindappa. Mikali. 31-07-2019 09-12-2025 17-03-2021 30. Maruti. Govind. Sanadi. 30-06-2023 09-12-2024 23-05-2024 31. Ramkrishna Venkappa. Paste. 31-05-2020 01-10-2024 21-07-2022 3. Brief facts of the case: 3.1. The petitioners retired from services of the respondent-Corporation on attaining the age of superannuation as stated in the table supra. The leave encashment payable to the respective petitioners was not released on the date of retirement and was paid after a delay of about 10 months without payment of any interest. 4. Learned counsel for the petitioners submits that the leave encashment is admittedly a terminal benefit and the Corporation’s own circular dated 09.07.1998 (Annexure-A) mandates payment on the date of retirement. Delay in payment, without any lawful - 10 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 justification entitles the petitioners to interest. It is submitted that the issue in regard to the interest payable for delayed payment is no longer res integra in view of the repeated decisions of this Court granting interest on delayed payment of terminal benefits. 5. Per contra, learned counsel appearing for the respondent-Corporation though does not dispute the delay in payment of leave encashment, but submits that the circular does not specifically provide for payment of interest and therefore the petitioner is not automatically entitled to interest at this rate. 6. This Court has carefully considered the rival submissions and perused the material on record. 7. The Circular dated 09.07.1998 (Annexure-A) clearly prescribes the procedure and entitlement relating to the payment of terminal benefits to retiring employees of the Corporation. The terminal benefits covered under the circular including leave encashment and - 11 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 other retiral settlement benefits payable on retirement. The circular unequivocally mandates that the terminal benefits shall be paid on the retirement itself, and the responsibility to ensure timely settlement is cast upon the concerned administrative and divisional authorities of the Corporation. Though the circular mandates timely payment, it does not expressly provide for the rate of interest in cases of delayed payment. The said question fell for consideration before this Court in the case of Yallappa S/o. Ramappa Alagawadi Vs. The Management of NWKRTC1 (Yallappa) while considering the interest on delayed payment of leave encashment, considering the various judgments of the Hon’ble Apex Court, it is held at paragraph No.16 as under: “16. In the totality of the aforesaid circumstance, this Court cannot accede to 1 WP No.106898/2025 D.D.15.12.2025 - 12 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 the prayer of interest at punitive or elevated rates such as 9% or 10%, at the same time, denial of interest altogether would be manifestly unjust and contrary to settled law. The balance must be stuck between the right of employees to be compensated for delay and the financial realities confronting a Public Corporation sustained by public funds. Wherefore, I deem it appropriate to direct payment of interest by the Corporation on every delayed payment of leave encashment not at 10%, not at 9%, not at 7% and not even at 5.48% as is projected by the Corporation, but at 6% per annum, which would be just and equitable and legally sustainable, which aligns with various factors viz., the judgment of the Apex Court, several judgments of the coordinate benches, the judgments of the Division Bench of High Courts of Madras and Delhi, prevailing bank interest rates and the financial condition of the respondent-Corporation. To ensure compliance and prevent further delay, it is necessary to stipulate that failure to make payment within the prescribed time, shall - 13 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 attract enhanced interest at 9% per annum, from the date the amount fell due, until it reaches the doors of every petitioner.” 8. The silence in the circular regarding the rate of interest has been judicially filled by the decision of this Court, which is aligned with the judgment of the Hon’ble Apex Court and several judgments of the Co- ordinate Benches and the judgment of the Division Bench of the High Court of Madras and Delhi, prevailing bank interest, the financial condition of the respondent-Corporation and held that when an employee is deprived of retrial benefits due to administrative delay, interest must follow as a matter of law. Leave encashment is an admitted terminal benefit, payment ought to have been made on the date of retirement. The delay in payment is therefore per se contrary to the Corporation's own circular (Annexure-A), such delay constitutes the foundational basis for claiming interest on the belated payment, at the same time, having regard to the facts and - 14 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 circumstances of the case, this Court is of the considered view that the ends of justice would be met by directing payment of interest at a reasonable rate with a determinant consequence in the event of further non-compliance. Accordingly, this Court pass the following: ORDER i) The writ petition is allowed in part. ii) A writ of mandamus is issued directing respondent-Corporation to pay interest at the rate of 6% per annum on the delayed payment of leave encashment to the petitioner within a period of twelve (12) weeks from the date of receipt of the copy of this order. iii) In the event, respondent-Corporation fails to pay the said amount within the stipulated period of twelve (12) weeks, the - 15 - HC-KAR NC: 2026:KHC-D:1506 WP No. 100742 of 2026 petitioner shall be entitled to interest at the rate of 9% per annum calculated from the date of default till the date of actual payment. Sd/- JUSTICE K.S.HEMALEKHA gab Ct:VH List No.: 1 Sl No.: 32