Thyagappa v. the Managing Director

Karnataka HC4 Jun 2026CA/76/2026

Case brief

AI extract

What is this about?

NGEF Ltd; voluntary retirement; superannuation amount; 4% per annum interest; winding-up order; ex-employees; Companies (Court) Rules 1959 Rule 179 read with Rules 6 and 9; Company Application allowed; payment within eight weeks; OSA No.12/2022 disposed 21.06.2023; Review Petition No.368/2023 dismissed 16.02.2024; Managing Director NGEF Ltd; Karnataka State Industrial Investment and Development Corporation; High Court of Karnataka; Jyoti M.

What did the court decide?

Respondent (Managing Director, NGEF Ltd.) directed to calculate and pay interest at 4% per annum on the amounts due and paid to the applicants/ex-employees towards superannuation on voluntary retirement, from the date of the winding-up order till the date of payment, within eight weeks from receipt of the certified copy of the order. ¶¶92

Thyagappa Vs the Managing Director — Karnataka HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

¶¶92

Issue for consideration

Whether the respondent (Managing Director, NGEF Ltd.) should be directed to calculate and pay interest at 4% per annum on the amounts due and paid to the applicants (ex-employees) on account of their voluntary retirement, towards superannuation amount, from the date of the winding-up order till the date of payment.

¶¶83

Court's answer

Because of the disposal of OSA No.12/2022 by the Division Bench, the Court deemed it proper to direct the respondent to calculate and pay interest at 4% per annum on the amounts due and paid to the applicants/ex-employees on account of their voluntary retirement from M/s. NGEF Ltd. towards superannuation amount, from the date of the winding-up order (recorded in the operative direction as 03.08.2024) till the date of payment.

¶¶91

Ratio / Principle

The payment directed is to be made within eight weeks from the receipt of the certified copy of this order.

¶¶91

Detailed headnote1 paragraphs

Company Application No. 76 of 2026 in Company Petition No. 154 of 2002 (M/s. NGEF Ltd.) — High Court of Karnataka at Bengaluru, Ms. Justice Jyoti M, 04.06.2026. Filed under Rule 179 read with Rules 6 and 9 of the Companies (Court) Rules, 1959 by 33 ex-employee applicants of M/s. NGEF Ltd. Following disposal of OSA No.12/2022 by the Division Bench (21.06.2023) and dismissal of Review Petition No.368/2023 (16.02.2024), the Court allowed the application and directed the respondent to calculate and pay interest at 4% per annum on the amounts due and paid to the applicants/ex-employees on account of their voluntary retirement, towards superannuation amount, from the date of the winding-up order (recorded as 03.08.2024 in the operative direction; 03.08.2004 in the prayer) till the date of payment, within eight weeks from receipt of the certified copy of the order.

¶1

¶2

NC: 2026:KHC:26376 CA No. 76 of 2026 In COP No. 154 of 2002

¶3

HC-KAR

¶4

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4^TH DAY OF JUNE, 2026

¶5

BEFORE

¶6

THE HON'BLE MS. JUSTICE JYOTI M COMPANY APPLICATION NO. 76 OF 2026

¶7

¶8

COMPANY PETITION NO. 154 OF 2002

¶9

BETWEEN:

¶10

THYAGAPPA S/O. VENKATARAMAIAH, AGED ABOUT 74 YEARS, NO.001, RAMAIAH MANSION, CKB LAYOUT, MUNNEKOLALA, BENGALURU-560 037.

¶11

Digitally signed by GEETHA P G Location: HIGH COURT OF KARNATAKA

¶12

H.R.MALLIKARJUNAPPA, S/O. H.C.REVANNA, AGED ABOUT 71 YEARS, NO.22, NEAR TO RTO HOUSE, MUNISWAMAPPA LAYOUT, CHANNANAYAKANAPALYA, NELAKADIRANAHALLI, BENGALURU-560 073.

¶13

M.VENKATESH, S/O. MADAIAH, AGED ABOUT 69 YEARS, NO.16/2, 6TH CROSS, SIRSI ROAD, CHAMARAJPET, BENGALURU-560 018.

¶14

GIRIJA BAI, W/O. A.KUBENDRAN, AGED ABOUT 73 YEARS, NO.33, 1ST CROSS,

¶15

2 - NC: 2026:KHC:26376 CA No. 76 of 2026 In COP No. 154 of 2002

¶16

HC-KAR

¶17

CAMBRIDGE LAYOUT, HALASURU, BENGALURU-560 008.

¶18

L.NAGARAJA, S/O. LAKSHMAIAH, AGED ABOUT 76 YEARS, NO.14/109, OLD TODDY STREET, BEHIND TALUK OFFICE, ANEKAL, BENGALURU-562 106.

¶19

RAMA MURTHY, S/O. N.APPAIAH, NO.06, RAJANNA GARDEN, VIRUPAKSHAPURA, OPP. MARAMMA TEMPLE, VIDYARANYAPURA POST, BENGALURU-560 097.

¶20

V.D.NATARAJAN, S/O. DHORASWAMY, AGED ABOUT 71 YEARS, THAGARAMANU MULA, KANGUNDI, CHITTOOR, ANDHRA PRADESH - 517 425.

¶21

A. KRISHNAPPA S/O. B.CHANNAPPA, AGED ABOUT 70 YEARS, NO.8-486, KANAKANAGARA, 1ST MAIN, V.V.EXTENSION, HOSKOTE, BENGALURU-562 114.

¶22

B.E. GAJENDRA RAO, S/O. ESHWARA RAO, AGED ABOUT 69 YEARS, NO.79, 4TH CROSS, 9TH MAIN, 1ST STAGE, 3RD BLOCK, NAGARABHAVI, BENGALURU-560 072.

¶23

3 - NC: 2026:KHC:26376 CA No. 76 of 2026 In COP No. 154 of 2002

¶24

HC-KAR

¶25

B. JOSEPH, S/O. BARNABAS, AGED ABOUT 64 YEARS, NO.4, 1ST A CROSS, 2ND MAIN, GOWTHAMAPURAM, HALASURU, BENGALURU-560 008.

¶26

SAVIO ASUNTHA RAJ, S/O. A.P. SUKIRTHARAJ, AGED ABOUT 70 YEARS, NO.39, PRABHU NILAYAM, 1ST CROSS, GUPTA LAYOUT, ULSOOR, BENGALURU-560 008.

¶27

M. NITHYANANDAN, S/O. R. MUNISWAMY, AGED ABOUT 76 YEARS, NO.24, 4TH CROSS, 1ST MAIN, SAMANAGOUDA LAYOUT, JOGUPALYA, ULSOOR, BENGALURU-560 008.

¶28

SMT. VASANTHA K.S., W/O. K.G.S. DESIKACHAR, AGED ABOUT 75 YEARS, NO.38, 4TH CROSS, AMARJYOTHINAGAR, BENGALURU-560 040.

¶29

B.V. PRASANNA VENKATARAMANA RAO, S/O. SRINIVASA RAO ANCHETI, AGED ABOUT 73 YEARS, NO. 146, 5TH A MAIN, 6TH CROSS, THYAGARAJANAGAR, BENGALURU - 560 028.

¶30

N. SHANKAR, S/O. NARAYANASWAMY, AGED ABOUT 73 YEARS, NO. 14, 7TH CROSS, LAKSHMIPURAM, HALASOORU, BENGALURU-560 008.

¶31

¶32

NC: 2026:KHC:26376 CA No. 76 of 2026 In COP No. 154 of 2002

¶33

HC-KAR

¶34

G.VENKATESH, S/O. T.GUNDAPPA, AGED ABOUT 66 YEARS, NO.7, 7TH MAIN, KRISHNAMURTHY LAYOUT, HORAMAVU ROAD, RAMAMURTHY NAGAR, BENGALURU-560 016.

¶35

L. JAYASHANKAR, S/O. LINGAPPA S., AGED ABOUT 78 YEARS, NO.68, LIG 1ST STAGE, 4TH MAIN, KHB COLONY, BASAVESHWARANAGAR, BENGALURU-560 079.

¶36

R. SHANTHAMMA, W/O. M.H.MARIYAPPA, NO.6, 22ND MAIN ROAD, 50 FEET ROAD, T BLOCK, GIRINAGAR, BSK III STAGE, BENGALURU-560 085.

¶37

NARAYANA RAMPURA, S/O. NEELAKANTAPPA RAMPURA, NO.299-45/1, 9TH MAIN, 7TH CROSS, G.P.RAJARATNAM ROAD, HANUMANTHANAGAR, BENGALURU-560 019.

¶38

M.MUDDAIAH S/O. KEMPAIAH, AGED ABOUT 76 YEARS, NO.18, 2ND MAIN, 7TH CROSS, NANJAMBA AGRAHARA, CHAMRAJPET, BENGALURU-560 018.

¶39

R. GIRIJA SHANKAR, S/O. LATE P.RANGAIAH, AGED ABOUT 67 YEARS,

¶40

¶41

NC: 2026:KHC:26376 CA No. 76 of 2026 In COP No. 154 of 2002

¶42

HC-KAR

¶43

NO.75, 20TH B MAIN, NEAR ISKCON, 1ST R BLOCK, RAJAJINAGAR, BENGALURU-560 010.

¶44

SMT. B.M. MANJULA, W/O. LATE M.NAGARAJA, AGED ABOUT 67 YEARS, NO.24, 3RD MAIN, 3RD CROSS, BANAGIRI NAGAR, BSK 3RD STAGE, BENGALURU-560 085.

¶45

T.N.RADHAKRISHNA, S/O. T.K.NARASEGOWDA, AGED ABOUT 68 YEARS, NO.4, 12TH A MAIN ROAD, PUTTAIAH ROAD, VRUSHABHAVATHI NAGAR, KAMAKSHI PALYA, BENGALURU-560 079.

¶46

ERAPPA,

¶47

S/O. CHIKKANNA, AGED ABOUT 78 YEARS, NO.104, 2ND STAGE, SRI. SATHYANARAYANA LAYOUT, J.C. NAGAR, KURUBARAHALLI, MAHALAKSHMI PURAM, BENGALURU-560 086.

¶48

N. NIRMALA, W/O. LATE C.NARAYANASWAMY, AGED ABOUT 57 YEARS, NO.40, 1ST MAIN, 2ND CROSS, OLD GANGANAGAR, R.T.NAGAR POST, BENGALURU-560 032.

¶49

PADMA, W/O. SHESHACHALA, AGED ABOUT 63 YEARS, NO.108, FOREST LAYOUT, BEHIND INDIAN STATISTICAL INSTITUTE, KENGERI, BENGALURU-560 060.

¶50

¶51

NC: 2026:KHC:26376 CA No. 76 of 2026 In COP No. 154 of 2002

¶52

HC-KAR

¶53

K.M. LALITHA, W/O. LATE T.RAMU, AGED ABOUT 67 YEARS, NO.50, 7TH B MAIN, 4TH BLOCK, GANESHA TEMPLE, JAYANAGAR, BENGALURU-560 041.

¶54

B. SINGRAIAH, S/O. GUDDAIAH, AGED ABOUT 75 YEARS, NO.13, NAGADEVANAHALLI, BENGALURU-560 056.

¶55

G. SRINIVASA, S/O. GIRIYAPPA, AGED ABOUT 48 YEARS, NO.408, 12TH MAIN ROAD, 8TH CROSS, RAGHAVENDRA BLOCK, SRINAGAR, BENGALURU-560 050.

¶56

R. MANJULA BAI, W/O. S.PADMANABHA RAO, AGED ABOUT 65 YEARS, NO.6, 1ST CROSS, TELECOM LAYOUT, SRIRAM APARTMENTS, THINDULU MAIN ROAD, VIDYARANYAPURA, BENGALURU-560 097.

¶57

SMT.SHAKUNTALA, W/O. SREERAM K, AGED ABOUT 62 YEARS, NO.571/1, 3RD CROSS, LNR GARDEN, KARIYANAPALYA, ST. THOMAS TOWN POST, BENGALURU-560 084.

¶58

SMT. C.V. GNANA SELVI, W/O. LATE V.S.SRIDHARAN, AGED ABOUT 66 YEARS, NO.18/1, MAHALAKSHMI FLATS B-4, MUTHUSWAMY STREET, SRINIVASA NAGAR,

¶59

¶60

NC: 2026:KHC:26376 CA No. 76 of 2026 In COP No. 154 of 2002

¶61

HC-KAR

¶62

NEW PERUNGAIATHUR, CHENNAI-600 063.

¶63

SMT. LAKSHMIDEVI, W/O. P.K.NAGAPRAKASH, AGED ABOUT 63 YEARS, NO.168, SRI. MOOKAMBIKA, 4TH MAIN, JP NAGAR, BENGALURU-560 078.

¶64

…APPLICANTS

¶65

(BY SRI. VISHWANATH R. HEGDE, ADVOCATE)

¶66

AND:

¶67

THE MANAGING DIRECTOR NGEF LTD. KARNATAKA STATE INDUSTRIAL INVESTMENT AND DEVELOPMENT CORPORATION, KHANIJA BHAVAN, RACE COURSE ROAD, BENGALURU-560 001.

¶68

…RESPONDENT

¶69

(BY SRI. SAJI P. JOHN, ADVOCATE)

¶70

THIS COMPANY APPLICATION IS FILED UNDER RULE 179 READ WITH RULES 6 AND 9 OF THE COMPANIES (COURT) RULES, 1959.

¶71

THIS COMPANY APPLICATION IS LISTED FOR ORDERS, THIS DAY AN ORDER IS MADE AS UNDER:

¶72

ORAL ORDER

¶73

Sri.Vishwanatha R.Hegde., counsel for the applicants has

¶74

appeared in person.

¶75

Sri.Saji.P.John., counsel has appeared in person and

¶76

undertakes to file power on behalf of the respondent.

¶77

¶78

NC: 2026:KHC:26376 CA No. 76 of 2026 In COP No. 154 of 2002

¶79

HC-KAR

¶80

Submission is noted. Office is directed to accept the

¶81

vakalath filed by counsel Sri.Saji.P.John.

¶82

2. The application is filed seeking following relief:

¶83

"The applicants pray that this Hon'ble Court may be pleased to direct the respondent to calculate and pay interest @ 4% p.a. on the amounts due and paid to the applicants /ex-employees on account of their voluntary retirement from the Company M/s. NGEF Ltd. towards superannuation amount, from the date of winding-up order i.e., 03.08.2004 till the date of payment and grant such other and further reliefs as are just"

¶84

Counsel for the respective parties urged several contentions. Heard the arguments and perused the papers with care.

¶85

Suffice it to note that the Division Bench disposed

¶86

of the OSA No.12/2022 on 21.06.2023. Thereafter, a Review Petition was filed in No.368/2023 and the same came to be dismissed on 16.02.2024. Pursuant to the disposal of the OSA by the Division Bench, the Company Application is filed to direct the respondent to calculate and pay the interest at 4% per annum on the amounts due and paid to the applicants /exemployees on account of their voluntary retirement from the

¶87

¶88

NC: 2026:KHC:26376 CA No. 76 of 2026 In COP No. 154 of 2002

¶89

HC-KAR

¶90

Company M/s.NGEF Ltd. towards superannuation amount, from the date of winding-up order i.e., 03.08.2024 till the date of payment.

¶91

Perused the application with utmost care. Because of disposal of OSA by the Division Bench, this Court deems it proper to direct the respondent to calculate and pay the interest at 4% per annum on the amounts due and paid to the applicants /ex-employees on account of their voluntary retirement from the Company M/s.NGEF Ltd. towards superannuation amount, from the date of winding-up order i.e., 03.08.2024 till the date of payment within eight weeks from the receipt of certified copy of this order.

¶92

Resultantly, the Company Application is allowed .

¶93

SD/(JYOTI M) JUDGE

¶94

MRP

¶95

List No.:1 Sl. No.:15

Parties & counsel

AI extract

applicant
THYAGAPPA S/O. VENKATARAMAIAH¶¶10
Vishwanath R. Hegde
applicant
H.R.MALLIKARJUNAPPA, S/O. H.C.REVANNA¶¶12
Vishwanath R. Hegde
applicant
M.VENKATESH, S/O. MADAIAH¶¶13
Vishwanath R. Hegde
applicant
GIRIJA BAI, W/O. A.KUBENDRAN¶¶14
Vishwanath R. Hegde
applicant
L.NAGARAJA, S/O. LAKSHMAIAH¶¶18
Vishwanath R. Hegde
applicant
RAMA MURTHY, S/O. N.APPAIAH¶¶19
Vishwanath R. Hegde
applicant
V.D.NATARAJAN, S/O. DHORASWAMY¶¶20
Vishwanath R. Hegde
applicant
A. KRISHNAPPA S/O. B.CHANNAPPA¶¶21
Vishwanath R. Hegde
applicant
B.E. GAJENDRA RAO, S/O. ESHWARA RAO¶¶22
Vishwanath R. Hegde
applicant
B. JOSEPH, S/O. BARNABAS¶¶25
Vishwanath R. Hegde
applicant
SAVIO ASUNTHA RAJ, S/O. A.P. SUKIRTHARAJ¶¶26
Vishwanath R. Hegde
applicant
M. NITHYANANDAN, S/O. R. MUNISWAMY¶¶27
Vishwanath R. Hegde
applicant
SMT. VASANTHA K.S., W/O. K.G.S. DESIKACHAR¶¶28
Vishwanath R. Hegde
applicant
B.V. PRASANNA VENKATARAMANA RAO, S/O. SRINIVASA RAO ANCHETI¶¶29
Vishwanath R. Hegde
applicant
N. SHANKAR, S/O. NARAYANASWAMY¶¶30
Vishwanath R. Hegde
applicant
G.VENKATESH, S/O. T.GUNDAPPA¶¶34
Vishwanath R. Hegde
applicant
L. JAYASHANKAR, S/O. LINGAPPA S.¶¶35
Vishwanath R. Hegde
applicant
R. SHANTHAMMA, W/O. M.H.MARIYAPPA¶¶36
Vishwanath R. Hegde
applicant
NARAYANA RAMPURA, S/O. NEELAKANTAPPA RAMPURA¶¶37
Vishwanath R. Hegde
applicant
M.MUDDAIAH S/O. KEMPAIAH¶¶38
Vishwanath R. Hegde
applicant
R. GIRIJA SHANKAR, S/O. LATE P.RANGAIAH¶¶39
Vishwanath R. Hegde
applicant
SMT. B.M. MANJULA, W/O. LATE M.NAGARAJA¶¶44
Vishwanath R. Hegde
applicant
T.N.RADHAKRISHNA, S/O. T.K.NARASEGOWDA¶¶45
Vishwanath R. Hegde
applicant
ERAPPA, S/O. CHIKKANNA¶¶46
Vishwanath R. Hegde
applicant
N. NIRMALA, W/O. LATE C.NARAYANASWAMY¶¶48
Vishwanath R. Hegde
applicant
PADMA, W/O. SHESHACHALA¶¶49
Vishwanath R. Hegde
applicant
K.M. LALITHA, W/O. LATE T.RAMU¶¶53
Vishwanath R. Hegde
applicant
B. SINGRAIAH, S/O. GUDDAIAH¶¶54
Vishwanath R. Hegde
applicant
G. SRINIVASA, S/O. GIRIYAPPA¶¶55
Vishwanath R. Hegde
applicant
R. MANJULA BAI, W/O. S.PADMANABHA RAO¶¶56
Vishwanath R. Hegde
applicant
SMT.SHAKUNTALA, W/O. SREERAM K¶¶57
Vishwanath R. Hegde
applicant
SMT. C.V. GNANA SELVI, W/O. LATE V.S.SRIDHARAN¶¶58
Vishwanath R. Hegde
applicant
SMT. LAKSHMIDEVI, W/O. P.K.NAGAPRAKASH¶¶63
Vishwanath R. Hegde
respondent
THE MANAGING DIRECTOR NGEF LTD. KARNATAKA STATE INDUSTRIAL INVESTMENT AND DEVELOPMENT CORPORATION¶¶67
Saji P. John

Coram

AI extract

Ms. Justice Jyoti Mauthor¶¶6

Thyagappa v. the Managing Director

Case brief

What is this about?

What did the court decide?

Thyagappa v. the Managing Director

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Statutes considered

Procedural history

Parties & counsel

Coram

Case details

Similar cases

H Alkurappa Vs the Divisional Controller

Punjab National Bank Vs M/S. Maxollin Developer Pvt. Ltd. Co.

Sri Rajesh Nair Vs Hdfc Bank Limited

Bifr Vs M/S Ngef Ltd.

Chaturbhuj L Vs Official Liquidator of Vajra Cements and Minerals Private Limited (in Liqn)

M/S. Shoma Automation Pvt. Ltd. Vs State Bank of India