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Satish Bhimarao Kulkarni v. the Management of Nwkrtc

Karnataka HC18 Sept 2025WP/100745/2025

Case brief

AI extract

What is this about?

Keywords: mediation settlement; joint memorandum; 'For the Nation' 90 days' drive; NWKRTC; KSRTC; leave encashment; terminal benefits; interest on belated payment; 7% and 9% interest; writ of mandamus; Articles 226 and 227; retired employee; Gadag Division; Dharwad Bench; Justice Suraj Govindaraj. Relevant to disputes over delayed payment of retirement/terminal dues resolved through court-annexed mediation and disposal in terms of settlement.

What did the court decide?

Petitioner to receive interest at 7% per annum on the belated payment of leave encashment benefits, payable within 8 weeks from receipt of the certified copy of the award; on failure, interest at 9% per annum; petitioner at liberty to initiate appropriate execution proceedings before the competent Court on non-compliance. ¶35

Satish Bhimarao Kulkarni Vs the Management of… — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the respondent (NWKRTC management) is liable to pay interest on the belated payment of the petitioner's terminal benefit, i.e., leave encashment benefit.

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Court's answer

Accepting the joint memorandum of settlement, the writ petition is disposed of in accordance with the settlement reached between the parties.

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Ratio / Principle

As per the settlement accepted by the Court, the Management, though disputing the order, agreed to pay interest at 7% per annum on the belated payment of leave encashment benefits for the period of delay, within 8 weeks from the date of receipt of the certified copy of the award, which the Petitioner accepted.

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Key takeaways

In the event of failure to pay the said interest within 8 weeks from the date of receipt of the copy of the order, the Respondent-Corporation shall pay interest at 9% per annum on the belated payment.ratio¶31

Detailed headnote1 paragraphs

Writ petition by a retired NWKRTC employee seeking interest on the belated payment of his terminal benefit (leave encashment) was referred to mediation under the Mediation Centre's 'For the Nation' 90 days' drive, with Mr. B.D. Hiremath as Mediator. A joint memorandum of settlement was filed: the Management, though disputing the order, agreed to pay interest at 7% per annum for the period of delay within 8 weeks of receiving the certified copy of the award, rising to 9% per annum on further default, with the petitioner retaining liberty to initiate execution proceedings on non-compliance. Accepting the joint memorandum, the Court disposed of the petition in terms of the settlement and recorded its appreciation of the Mediator's efforts.

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NC: 2025:KHC-D:12618 WP No. 100745 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA,AT DHARWAD DATED THIS THE 18^TH DAY OF SEPTEMBER, 2025 BEFORE

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THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

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WRIT PETITION NO. 100745 OF 2025 (S-KSRTC)

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BETWEEN:

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SATISH BHIMARAO KULKARNI AGE. 60 YEARS, OCC. RETIRED SERVICE, VANI PETE, INDIYAVAR ONI, AT. GAJENDRAGAD, TQ/DIST. GADAG.

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…PETITIONER

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(BY SMT. SAROJA C.BANAKAR, ADVOCATE)

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AND:

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THE MANAGEMENT OF NWKRTC, REPTD BY ITS DIVISIONAL CONTROLLER GADAG DIVISION, GADAG-582103.

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Digitally signed by SAROJA HANGARAKI Location: High Court of Karnataka, Dharwad Bench, Dharwad

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…RESPONDENT

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(BY SRI. PRASHANT HOSAMANI, ADVOCATE)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, WRIT OF MANDAMUS OF POSITIVE NATURE, DIRECTING THE RESPONDENT TO PAY THE INTEREST AT THE RATE OF 18% PER ANNUM ON THE BELATED PAYMENT OF TERMINAL BENEFIT I.E. LEAVE ENCASHEMENT BENEFIT BY FIXING OUTER LIMIT AND ISSUE ANY OTHER WIT OR ORDER AS THIS HON’BLE COURT

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2 - NC: 2025:KHC-D:12618 WP No. 100745 of 2025

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HC-KAR

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MAY DEEM FIT IN CIRCUMSTANCES OF THE CASE INCLUDING THE COST OF THE PROCEEDINGS, IN THE INTEREST OF JUSTICE.

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORAL ORDER

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(PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ)

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The matter was referred to mediation under the aegis of the Mediation centre in the light of the Mediation “For the Nation” 90 days’ drive. Mr. B.D. Hiremath was appointed as the Mediator in the present case.

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It is submitted that the Mediator has successfully facilitated a settlement between the parties. Pursuant thereto, a joint memorandum has been filed, recording the terms of the compromise, which reads as under:

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“1. The Petitioner has filed the above writ petition seeking a direction to the Respondents to pay interest at 14% per annum on the belated payment of terminal benefits, namely leave encashment benefits.

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NC: 2025:KHC-D:12618 WP No. 100745 of 2025

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HC-KAR

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2. During the pendency of the above writ petition, the parties have amicably settled the issue involved, on the following terms and conditions, in order to put an end to the litigation:

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a. The Management, though disputing the order, has agreed to pay interest at 7% per annum on the belated payment of leave encashment benefits for the period of delay, within 8 weeks from the date of receipt of the certified copy of the award, which the Petitioner has accepted.

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b. It is further agreed that in the event of failure to pay the said interest within 8 weeks from the date of the receipt of the copy of the order, the RespondentCorporation shall pay interest at 9% per annum on the belated payment.

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c. If the Management fails to comply with the aforesaid conditions, the Petitioner is at liberty to initiate appropriate proceedings before the competent Court of law for execution of this settlement.

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d. The above settlement and the terms agreed upon are in accordance with law, do not offend any provision of law, and constitute a fair and reasonable settlement in the interest of both parties.

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WHEREFORE , the parties respectfully pray that this Hon'ble Court may be pleased to dispose of the matter in terms of the settlement recorded herein, in the interest of justice and equity.”

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