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2026 DAILYLAW 917 (KAR)

SRI A ALTAF HUSSAIN v. MANAGING DIRECTOR

WP/18506/2024 · 2026-02-18

Anant Ramanath Hegde

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Judgment text

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- 1 - HC-KAR NC: 2026:KHC:10151 WP No. 18506 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE WRIT PETITION NO. 18506 OF 2024 (S-KSRTC) BETWEEN: SRI A ALTAF HUSSAIN, S/O SYED BASHA, AGED ABOUT 61 YEARS, R/AT NO 220, 1ST MAIN, 2ND STAGE AREKERE, MICO LAOUT, BANNERGHATTA ROAD, NEAR SOUTH CITY APARTMENT, BENGALURU 560083, (SENIOR CITZEN BENEFIT NOT CLAIMED). …PETITIONER (BY SRI/SMT A SAMPATH.,ADVOCATE) AND: 1. MANAGING DIRECTOR, KARNATAKA STATE ROAD TRASNPORT CORPORATION, TRASNPORT HOUSE, K H ROAD, SHANTI NAGAR, BENGALURU 560027. 2. DIVISION CONTROLLER. DIVISION OFFICE. KKRTC HOSPETE - 583201. 3. MANAGING DIRECTOR, KKRTC CENTRAL OFFICE, SARIGE SADANA MAIN ROAD, KALABURAGI - 585105 …RESPONDENTS (BY SMT RENUKA H R, ADVOCATE FOR R1 TO R3) Digitally signed by PRAMILA G V Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:10151 WP No. 18506 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE RESPONDENTS TO PAY INTEREST AT 10 PERCENT FOR THE DELAYED PAYMENT ON THE GRATUITY AMOUNT OF RS. 31,78,912/- (THIRTY ONE LAKHS SEVENTY EIGHT THOUSAND NINE HUNDRED AND TWELVE RUPEES) AND ON EARNED LEAVE ENCASHMENT AMOUNT OF RS. 12,33,890/- (TWELVE LAKHS THIRTY THREE THOUSAND EIGHT HUNDRED AND NINETY RUPEES) BY CONSIDERING THE REPRESENTATION DTD. 15.04.2024 AT ANNX-L. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE ORAL ORDER Heard the learned counsel appearing for the petitioner and the learned counsel appearing for the respondent. 2. The dispute is relating to the interest payable on the delayed payment of service benefits payable to the petitioner-employee by the respondent-Corporation. 3. Learned counsel for the petitioner would urge that the Division Bench of this Court in The Divisional Controller, North West Karnataka Road Transport Corporation, Dharwad Rural Division and Another vs - 3 - HC-KAR NC: 2026:KHC:10151 WP No. 18506 of 2024 Tanaji and Others1 has awarded 9% interest on delayed payment and would urge that same rate of interest is to be applied to the petitioner's claim and 9% interest per annum is to be awarded. 4. Learned counsel for the respondent-Corporation would refer to the judgment of the Co-ordinate Bench of this Court in Sri Yallappa vs. The Management of NWKRTC Hubballi Rural Division and connected matters2 and would urge that 6% interest is awarded on delayed payment. It is urged on behalf of the respondent-Corporation that, though the Division Bench has awarded 9% interest, the Co- ordinate Bench of this Court has referred to the Supreme Court Judgment wherein, the interest is awarded interest at 6% per annum and the Divisional Bench of this Court has not referred to the judgment in State of Andhra Pradesh and Another vs. Dinavahi Lakshmi Kameswari3 as such, the said judgment is per incuriam. 1 WA No.100193/2024 2 WP No.106898/2025 & Connected matters 3 (2021) 11 SCC 543 - 4 - HC-KAR NC: 2026:KHC:10151 WP No. 18506 of 2024 5. The Court has considered the contentions raised at the Bar and perused the records. 6. In the judgment of the Division Bench referred to by the learned counsel for the petitioner, admittedly, there is no reference to the judgment of the Apex Court in State of Andhra Pradesh (supra) which has awarded 6% interest in case of delayed payment. The Co-ordinate Bench of this Court has referred to the judgment of the Apex Court in State of Andhra Pradesh (supra) which is with reference to a similar- Corporation namely the Andhra Pradesh State Road Transport Corporation and the Apex Court noticing the financial condition of the said Corporation has reduced the interest from 12% to 6%. 7. Since it is submitted that on account of financial difficulty faced by the petitioner-Corporation which is also due to the unprecedented difficult situation during Covid period, the Court is of the view that the petitioner is entitled to 6% interest on the delayed payment. - 5 - HC-KAR NC: 2026:KHC:10151 WP No. 18506 of 2024 8. However, it is made clear that in case the payment is not made within 12 weeks from today, the petitioner is entitled to 9% interest per annum and in such a situation, the respondent-Corporation cannot plead for reduction of interest rate. 9. Petition is disposed of accordingly. Sd/- (ANANT RAMANATH HEGDE) JUDGE CHS List No.: 1 Sl No.: 0