- 1 - HC-KAR NC: 2026:KHC:8450 WP No. 18328 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD WRIT PETITION NO. 18328 OF 2024 (S-RES) BETWEEN: SRI CHANDRAKUMAR B A @ CHANDRAKUMAR SETTY S/O LATE ADINARAYANA SETTY AGED ABOUT 61 YEARS RETIRED AS FIRST DIVISION ASSISTANT R/AT NO 712, ‘SANJEEVINI NILAYA’ 2ND MAIN, 13TH CROSS, KTJ NAGAR DAVANAGERE DISTRICT DAVANAGERE 577002. …PETITIONER (BY SRI. SATISH K., ADVOCATE) AND: 1. THE STATE OF KARNATAKA REP. BY THE PRINCIPAL SECRETARY VIKASA SOUDHA, BANGALORE 560001. 2. DIRECTORATE OF MUNICIPAL ADMINISTRATION REP. BY ITS DIRECTOR 9TH FLOOR AND 10TH FLOOR VISHWESHWARAIAH TOWER DR AMBEDKA VEEDHI BANGALORE 560001. 3. THE TOWN MUNICIPAL COUNCIL CHANNAGIRI DAVANAGERE DISTRICT-577213. Digitally signed by MALATHI CHALUVA IYENGAR Location: HIGH COURTOF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:8450 WP No. 18328 of 2024 4. THE PRINCIPAL ACCOUNTANT GENERAL (A AND E) PARK HOUSE ROAD P B NO 5329, BANGALORE-560001. 5. DEPUTY COMMISSIONER (ADMINISTRATION) CITY CORPORATION DAVANAGERE DISTRICT-577002. …RESPONDENTS (BY SRI.G RAMESH NAIK, AGA FOR R1 R2 & R4: V/O DATED: 11/07/2024 NOTICE TO R3 STANDS DEFERRED: SRI. MANJUNATH., ADVOCATE FOR R5) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR RECORDS FROM THE RESPONDENTS, ISSUE A WRIT OR ORDER QUASHING THE IMPUGNED ENDORSEMENT DATED: 26/12/2023 BEARING NO. DAAMAPAA/SAAAAVI/SIBBANDI- 1/CR/90-1994-95 ISSUED BY THE R3 (ANNEXURE-N) AND CONSEQUENTLY ISSUE A WRIT OF MANDAMUS DIRECTING THE RESPONDENTS TO RELEASE / SETTLE AND PAY THE PENSION, DCRG, COMMUTATION VALUE, ARREARS OF PENSION AND ALL OTHER PENSIONARY BENEFITS ALONG WITH 12 PERCENT INTEREST FROM THE DUE DATE TILL ACCRUAL TO THE PETITIONER AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD ORAL ORDER This writ petition is filed under Articles 226 and 227 of the Constitution of India, calling in question the endorsement dated 26.12.2023 vide Annexure-N, whereby the petitioner was directed to pay a sum of Rs.34,755/- - 3 - HC-KAR NC: 2026:KHC:8450 WP No. 18328 of 2024 plus Rs.12,79,607/- to respondent No.5 – Corporation to satisfy the audit objections. 2. The petitioner was initially appointed as a daily wage employee on a contract basis in the third respondent–Department on 12.05.1984. Thereafter, his services were regularised on 12.06.1994. The petitioner retired as a First Division Assistant on 31.05.2023. Subsequently, based on the audit report, the impugned endorsement vide Annexure-N came to be issued. Being aggrieved by the same, the petitioner is before this Court. 3. The learned counsel appearing for the petitioner raised the following contentions: (i) Firstly, in the statement of objections filed on behalf of respondent No.3, it is stated that while the petitioner was working as a Second Division Assistant from 02.06.1994 to 10.12.2004 at the Davanagere City Municipality, he misappropriated funds, which was reported in the audit report. Now, after a lapse of nearly - 4 - HC-KAR NC: 2026:KHC:8450 WP No. 18328 of 2024 30 years, the respondents have issued the impugned endorsement vide Annexure-N, that too without conducting any enquiry. (ii) Secondly, under Rule 214(1)(b) of the Karnataka Civil Service Rules (for short, ‘KCSRs’), the employer can recover pecuniary loss from the pension only if, in any departmental or judicial proceedings, the pensioner is found guilty. Since no enquiry has been conducted, the impugned endorsement is contrary to Rule 214 of the KCSRs. Therefore, he sought allowing of the writ petition and a direction to settle all pensionary benefits. 4. The learned counsel appearing for respondent No.5 submits that while the petitioner was working as a Second Division Assistant from 1994 to 2004, he misappropriated a sum of Rs.12,79,607/-, including Rs.34,755/-. Since this resulted in pecuniary loss to the Government, the impugned endorsement was issued directing him to repay the loss caused. - 5 - HC-KAR NC: 2026:KHC:8450 WP No. 18328 of 2024 5. Heard the learned counsel for the parties and perused the writ petition papers. 6. As per the impugned endorsement dated 26.12.2023 vide Annexure-N, respondent No.5 directed the petitioner to pay a sum of Rs.12,79,607/- plus Rs.34,755/- pursuant to the audit objection. As per the statement of objections filed by respondent No.3, there was an audit objection regarding misappropriation of funds when the petitioner was working as a Second Division Assistant from 02.06.1994 to 10.12.2004 in Davanagere City Municipality. However, no enquiry has been conducted by the respondents. Without conducting any enquiry, the impugned endorsement has been issued. 7. Under Rule 214 of the KCSRs, if in any departmental or judicial proceedings the pensioner is found guilty of grave misconduct or negligence during the period of service, or if any departmental proceedings are pending, the authorities may withhold pension or recover - 6 - HC-KAR NC: 2026:KHC:8450 WP No. 18328 of 2024 pecuniary loss from the pension. In the present case, admittedly, no enquiry has been conducted. Therefore, the impugned endorsement at Annexure-N has been issued without jurisdiction and the impugned endorsement is liable to be quashed. 8. Accordingly, the following order: (i) The writ petition is allowed. (ii) The impugned order dated 26.12.2023 vide Annexure-N is quashed reserving liberty to the respondents to take appropriate action, if law permits, in accordance with law and are also directed to settle the petitioner's retirement benefits in accordance with law. (iii) If the respondents fail to initiate any proceedings, in accordance with law, within three months from date of receipt of a copy of this order, they have to settle the pensionary benefits to the petitioner, along - 7 - HC-KAR NC: 2026:KHC:8450 WP No. 18328 of 2024 with interest, within four months from the date of receipt of a copy of this order. Sd/- (H.T. NARENDRA PRASAD) JUDGE CM LIST NO.: 1 SL NO.: 43