- 1 - HC-KAR NC: 2026:KHC-D:705 WP No. 103873 of 2023 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 21ST DAY OF JANUARY, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO.103873 OF 2023 (L-PG) BETWEEN: KARNATAKA VIKAS GRAMEENA BANK, REGIONAL RURAL BANK, CONSTITUTED UNDER R.R.B ACT, 1976, HEAD OFFICE, DHARWAD, REPRESENTED BY ITS GENERAL MANAGER, SRI. SATEESHA R. S/O. RUDRAPPA M.L. …PETITIONER (BY SMT. BHAGYASHREE N.B., ADVOCATE) AND: 1. THE APPELLATE AUTHORITY UNDER PAYMENT OF GRATUITY ACT, 1972 AND DY. CHIEF LABOUR COMMISSIONER (CENTRAL), SHRAM SADAN, III CROSS, III MAIN, II PHASE, TUMKUR ROAD, YESWANTHPUR, BANGALORE-560022. 2. THE CONTROLLING AUTHORITY UNDER PAYMENT OF GRATUITY ACT, 1972 AND ASSISTANT LABOUR COMMISSIONER (C), HUBLI, CTS NO.2777/4B, 1ST FLOOR (OPP. HDMC PARK), NEAR BHAVANI NAGAR LAST BUS STOP, HUBLI-580023. 3. SRI. UMESH S.PATTAR, SHAMBHAVI BUILDING, Digitally signed by VIJAYALAKSHMI M KANKUPPI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC-D:705 WP No. 103873 of 2023 HONDADA VEERABHADRESHWARA NAGAR, VIDYAGIRI, DHARWAD-580004. …RESPONDENTS (BY SRI. M.B. KANAVI, ADVOCATE FOR R1 AND R2; SRI. PRAKASH BADIGER, ADVOCATE FOR R3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA, PRAYING TO CALL FOR RELEVANT RECORDS AND ISSUE A WRIT OF CERTIORARI OR ANY OTHER WRIT OR ORDER IN THE LIKE NATURE QUASHING THE IMPUGNED ORDER DATED 15/11/2021 PASSED BY THE RESPONDENT NO.2 IN APPLICATION NO.48/13/2020-A/H PRODUCED AT ANNEXURE-C AND THE IMPUGNED ORDER DATED 27/03/2023 PASSED BY THE RESPONDENT NO.1 IN APPEAL NO.36(57)/2021-B1 PRODUCED AT ANNEXURE-D, AS THE SAME BEING TOTALLY ARBITRARILY, ILLEGAL AND NOT SUITABLE IN LAW, IN THE INTEREST OF JUSTICE AND EQUITY AND ISSUE DIRECTION TO RESPONDENT NO.1 TO RETURN THE AMOUNT DEPOSITED BY PETITIONER BEFORE RESPONDENT NO.1 AS PER THE PROVISIONS OF SECTION 7(7) PROVISO 2 OF PAYMENT OF GRATUITY ACT, 1972 AND ETC.,. THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 3 - HC-KAR NC: 2026:KHC-D:705 WP No. 103873 of 2023 ORAL ORDER The Karnataka Vikas Grameen Bank is before this Court questioning the order dated 15.11.2021 passed by the respondent No.2, which has been affirmed by the Appellate Authority/respondent No.1 by order dated 27.03.2023. The operative portion of the order dated 15.11.2021 reads as under: “ORDER 1. The Application is allowed to the extent that the Applicant shall be entitled for payment of difference of gratuity of Rs.4,21,576.80 in addition to the gratuity amount of Rs.15,78,423.00 already settled on 26.07.2021 by the Respondent. 2. The Applicant shall be entitled to payment of 10% simple interest per annum as per the following calculation. a. 10% SI on delay of 421 days from 31.05.2020 to 25.7.2019 in settlement of gratuity of Rs.15,78,423.00 gratuity = Rs.1,82,059.00; plus b. 10% SI for the period of delay on settlement of difference of gratuity of Rs.4,21,576.80 from 31.05.2020 till the date of actual payment. - 4 - HC-KAR NC: 2026:KHC-D:705 WP No. 103873 of 2023 c. The Respondent is directed to pay the amounts mentioned at a & b hereinabove to the Applicant towards difference of gratuity and interest for the period of delay in settlement of gratuity. Order in Form ‘R’ is enclosed.” 2. This order was challenged before the Appellate Authority under the Payment of Gratuity Act, 1972, and by order dated 27.03.2023, the same was affirmed. 3. The learned counsel appearing for the petitioner submits that the respondent is not entitled for interest on the delayed payment of gratuity and they have already stated that the reason for the delayed remittance of the gratuity amount was due to pending disciplinary proceedings against the respondent. However, the learned counsel appearing for the petitioners does not dispute the fact that a Co-ordinate Bench of this Court has held that the employee is entitled for interest on the delayed payment of gratuity. Against that, writ appeal filed by the petitioner/Bank is dismissed. They filed SLP and the same is also dismissed. Thereafter, they have filed a curative petition and the same is pending consideration. In that view of the - 5 - HC-KAR NC: 2026:KHC-D:705 WP No. 103873 of 2023 matter, till the curative petition is heard by the Hon’ble Apex Court, this matter may be adjourned. 4. The learned counsel appearing for the respondents submits that in the light of the judgment passed by a Co- ordinate Bench of this Court in W.P.No.111099/2019 and connected matters dated 06.06.2021, the petitioner is entitled for the interest. This writ petition is pending from the year 2023. In the light of the orders passed in W.P.No.111099/2019, the present writ petition is liable to be dismissed. 5. Having heard the learned counsel on either side, perused the material on record. A Co-ordinate Bench of this Court in W.P.No.111099/2019 and batch matters has held that the employer is liable to pay the interest for the delayed period in depositing the gratuity amount, which has been affirmed by the Hon’ble Apex Court. However, pending curative petition cannot be the ground. 6. In the light of the order passed in W.P.No.111099/ 2019 and batch matters, the petition filed by the employer/Karnataka Vikas Grameen Bank cannot be considered and hence, this Court is passing the following: - 6 - HC-KAR NC: 2026:KHC-D:705 WP No. 103873 of 2023 ORDER (i) The writ petition stands dismissed affirming the order dated 15.11.2021 passed by the respondent No.2. (ii) All I.As., in this writ petition stand closed. Sd/- JUSTICE LALITHA KANNEGANTI YAN CT: UMD List No.: 1 Sl No.: 0