Karnataka State Road Vs the Deputy Labour… — Writ and Judicial Review | Karnataka HC (2025)

Karnataka State Road Vs the Deputy Labour… — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Writ of Certiorari issued: the Controlling Authority's order dated 26.05.2012 quashed insofar as it awarded interest on gratuity, and the Appellate Authority's order dated 20.05.2015 quashed; writ petition allowed in part.

Issue for consideration

Whether the third respondent-workman is entitled to interest on the gratuity amount, given that he initiated proceedings before the Controlling Authority before the Hon'ble Apex Court disposed of his petition (only in 2017).

Court's answer

The third respondent is not entitled to interest on the gratuity amount; the order passed by the Controlling Authority is modified accordingly, since the workman initiated proceedings before the Controlling Authority before the Apex Court disposed of the petition (only in 2017).

Ratio / Principle

A Writ of Certiorari is ordered: the Controlling Authority's order dated 26.05.2012 is quashed as far as awarding of interest, and the Appellate Authority's order dated 20.05.2015 is also quashed.

Detailed headnote1 paragraphs

Karnataka State Road Transport Corporation (Bengaluru Rural Division) challenged, under Articles 226 and 227, the orders of the Controlling Authority dated 26.05.2012 and the Appellate Authority dated 20.05.2015 under the Payment of Gratuity Act, which had awarded interest on gratuity to D. Krishnappa, a Driver dismissed on 27.09.2010 for securing employment by production of a fake transfer certificate. His dismissal was upheld by this Court (order dated 20.09.2013 in W.P.No.26172/2013 and W.P.No.32911/2013) and in W.A.No.6403/2013 (dismissed 17.11.2014); the Apex Court in SLP.No.8255/2015 converted the dismissal into compulsory retirement. The Corporation paid Rs.1,03,500/- as gratuity, received by the workman on 05.11.2015. Since the workman had initiated proceedings before the Controlling Authority before the Apex Court disposed of his petition (only in 2017), the Court held he was not entitled to interest on the gratuity amount, modified the Controlling Authority's order accordingly, and issued a Writ of Certiorari quashing the interest-awarding portion of the 26.05.2012 order and the Appellate Authority's order dated 20.05.2015. Writ petition allowed in part.

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19^TH DAY OF NOVEMBER, 2025

BEFORE

THE HON'BLE MS. JUSTICE JYOTI M WRIT PETITION NO. 51361 OF 2015 (L-KSRTC)

BETWEEN:

KARNATAKA STATE ROAD TRANSPORT CORPORATION, BENGALURU RURAL DIVISION, DEEPANJALINAGARA, MYSORE ROAD, BENGALURU. BY ITS DIVISIONAL CONTROLLER REPRESENTED BY ITS CHIEF LAW OFFICER.

…PETITIONER

(BY SMT. RENUKA H.R., ADVOCATE)

AND:

Digitally signed by THEJAS KUMAR N Location: HIGH COURT OF KARNATAKA

THE DEPUTY LABOUR COMMISSIONER AND THE APPELLATE AUTHORITY, UNDER THE PAYMENT OF GRATUITY ACT, REGION 1, KARMEEKA BHAVAN, BANNERGHATTA ROAD, BENGALURU - 560 029.

THE ASSISTANT LABOUR COMMISSIONER AND CONATROLLING AUTHORITY, UNDER THE PAYMENT OF GRATUITY ACT, DIVISION-4, KARMEEKA BHAVAN, BANNERGHATTA ROAD, BENGALURU - 560 029.

D.KRISHNAPPA, S/O. LATE DODDAMARIYAPPA ADULT R/O. KOTTUR VILLAGE,

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VARTHUR, HOSAKOTE TALUK, MUTTHASANDRA POST, BENGALURU RURAL DISTRICT - 562 114.

…RESPONDENTS

(BY SRI. RAJENDRA K.R., AGA FOR R1 & 2; R3 - SERVED AND UNREPRESENTED)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS.

THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, AN ORDER IS MADE AS UNDER:

ORAL ORDER

Smt.H.R.Renuka., counsel for the petitioner and Sri.Rajendra.K.R., AGA for respondents 1 and 2 have appeared in person.

Notice to respondent No.3 was ordered on 04.12.2015. A perusal of the office note depicts that respondent No.3 is served and unrepresented. He has neither engaged the services of an advocate nor conducted the case as a party in person.

The orders of the Controlling Authority and the Appellate Authority are called into question in this Writ Petition

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by the Corporation on several grounds as set-out in the Memorandum of Writ Petition.

Counsel for the petitioner and AGA for respondents 1 and 2 urged several contentions. Heard the arguments and perused the Writ papers with care.

Suffice it to note that the third respondent joined the services of the Corporation as a Driver in 1992 and was placed on probation. On 27.09.2010, he was dismissed from service on the charge of securing an employment by production of a fake transfer certificate. In the dismissal order, a direction was issued to confiscate the gratuity amount. The dispute was raised by the workman in I.D.No.41/2010 before the Labor Court, Bengaluru, was allowed in part, by directing reinstatement of the workman with continuity of service without backwages and with denial of five increments. The Corporation questioned the award in W.P.No.26172/2013 and the workman questioned the award in W.P.No.32911/2013. This Court vide order dated 20.09.2013 disposed of the Writ Petitions and upheld the order of dismissal. The workman assailed the order passed in Writ Petition by filing an appeal in

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W.A.No.6403/2013 and the same came to be dismissed vide order dated 17.11.2014. The workman approached the Hon'ble Apex Court in SLP.No.8255/2015. The Apex Court vide order dated 28.07.2015, converted the order of dismissal into one of compulsory retirement.

Counsel Smt.H.R.Renuka., on instructions submits that the Corporation calculated the gratuity as per the regulations and an amount of Rs.1,03,500/- (Rupees One Lakh Three Thousand and Five Hundred only) has been paid to the third respondent - D.Krishnappa and he has received the same on 05.11.2015, as is evident from the order sheet of the Controlling Authority.

It is noted that the workman initiated proceedings before the Controlling Authority before the order passed by the Hon'ble Apex Court. It is not in dispute that the Apex Court disposed of the petition only in 2017. The Controlling authority passed the order on 26.05.2012. Hence, this Court deems it proper to modify the order passed by the Controlling Authority holding that he is not entitled to interest on the gratuity amount.

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The Writ of Certiorari is ordered. The order

dated:26.05.2012 passed by the Controlling Authority as far as awarding of interest is quashed and the order dated:20.05.2015 passed by the Appellate Authority is also quashed.

Resultantly, the Writ Petition is allowed in part .

SD/(JYOTI M) JUDGE

KMV List No.: 1 Sl No.: 21

Procedural history

How this case reached the court

AI extract

Order under challenge
Order dated 26.05.2012 of the Controlling Authority under the Payment of Gratuity Act (challenged insofar as it awarded interest on gratuity) and order dated 20.05.2015 of the Appellate Authority, both called into question by the Corporation and quashed by this Court.¶6
Controlling Authority and Appellate Authority under the Payment of Gratuity Act · 20.05.2015
Prior proceeding
Third respondent joined the Corporation as a Driver in 1992 and was placed on probation.¶5
Prior proceeding
Dismissed from service on 27.09.2010 on the charge of securing employment by production of a fake transfer certificate.¶5
Prior proceeding
The dismissal order contained a direction to confiscate the gratuity amount.¶5
Prior proceeding
Workman raised a dispute in I.D.No.41/2010 before the Labour Court, Bengaluru; the award was allowed in part.¶5
Prior proceeding
The Labour Court award directed reinstatement with continuity of service, without backwages, and with denial of five increments.¶5
Prior proceeding
The Corporation questioned the award in W.P.No.26172/2013 and the workman questioned it in W.P.No.32911/2013.¶5
Prior proceeding
This Court, by order dated 20.09.2013, disposed of both Writ Petitions and upheld the order of dismissal.¶5
Prior proceeding
The workman assailed the writ order in W.A.No.6403/2013; the appeal was dismissed vide order dated 17.11.2014.¶5
Prior proceeding
The workman approached the Hon'ble Apex Court in SLP.No.8255/2015.¶5
Prior proceeding
The Apex Court, vide order dated 28.07.2015, converted the order of dismissal into one of compulsory retirement.¶5
Prior proceeding
Per counsel (on instructions), the Corporation calculated gratuity as per the regulations and paid Rs.1,03,500/- to the third respondent, who received it on 05.11.2015, as evident from the order sheet of the Controlling Authority.¶5
Prior proceeding
The workman initiated proceedings before the Controlling Authority before the order passed by the Hon'ble Apex Court; it is not in dispute that the Apex Court disposed of the petition only in 2017.¶5
Prior proceeding
The Controlling Authority passed its order on 26.05.2012.¶5
Prior proceeding
Notice to respondent No.3 was ordered on 04.12.2015; respondent No.3 is served and unrepresented, having neither engaged an advocate nor appeared in person.¶2