In this writ appeal, the Karnataka High Court dismissed the appeal filed by an employee of Karnataka Handloom Corporation Limited, upholding the Single Judge's order which rejected a claim for Dearness Allowance due to the corporation's financial discretion.
The writ appeal was dismissed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
NC: 2026:KHC:20849-DB WA No. 1835 of 2024
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF APRIL, 2026
PRESENT
THE HON'BLE MR. JUSTICE D K SINGH
AND
THE HON'BLE MR. JUSTICE T.M.NADAF WRIT APPEAL NO. 1835 OF 2024 (S-RES)
BETWEEN:
SRI.B.S.GURUSWAMY, AGED ABOUT 68 YEARS, S/O LATE SHIVABASAPPA, RESIDING AT NO. 2010/19, 7TH MAIN ROAD, 1ST BLOCK EAST, JAYANAGARA, BANGALORE - 560 011.
…APPELLANT
(BY SRI. S.B. MUKKANNAPPA, ADVOCATE)
AND:
Digitally signed by REKHA R Location: High Court of Karnataka
KARNATAKA HANDLOOM CORPORATION LIMITED, NO.1, REGIONAL OFFICE, TANK BUND ROAD, HALASURU, BENGALURU - 560 042.
NOW SHIFTED TO PRIYADARSHINI NEKARA BHAVANA, VIDYANAGAR, HUBBALLI - 580 031 REPRESENTED BY ITS MANAGING DIRECTOR,
…RESPONDENT
(BY SRI.NAGARAJ D., ADVOCATE)
HC-KAR
THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER DATED 22.10.2024 PASSED BY THE LEARNED SINGLE JUDGE IN W.P.No.14203/2018 AND CONSEQUENTLY ALLOW THE W.P.No.14203/2018 FILED BY THE APPELLANT IN THE INTEREST OF JUSTICE AND EQUITY.
THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE T.M.NADAF
ORAL JUDGMENT
(PER: HON'BLE MR. JUSTICE T.M NADAF)
This intra Court appeal by the petitioner in W.P.No.14203/2018 filed under Section 4 of the Karnataka High Court Act, 1961, calling in question the order dated 22.10.2024 passed by the Writ Court.
NC: 2026:KHC:20849-DB WA No. 1835 of 2024
HC-KAR
The petitioner was before the Writ Court seeking
following reliefs:
"WHEREFORE, it is humbly prayed that this Hon'ble Court be pleased to issue:-
Karnataka Handloom Development Corporation Limited. It
HC-KAR
is the claim of the petitioner that under a settlement entered into between the Management and the workmen in terms of Section 12(3) R/w Section 18(3) of the Industrial Disputes Act, 19471 and Rule 59 of Industrial Disputes (Karnataka) Rules, 19572 , resolved to revise the Dearness Allowance (DA), House Rent Allowance (HRA) and City Compensatory Allowance (CCA) on same pattern as that of the State Government. It is the further claim that, the Government thereafter as per Annexure-E revised the DA on several occasion to its employees and it is the contention of the employee that the same benefit be extended to the petitioner.
1 for short, 'the Act of 1947'
2 for short, 'the Rules of 1957'
HC-KAR
and Loss statement of the corporation produced at Annexures-R1 and R2 along with statement of objections and submitted that the financial health of the Company would reveal that the Corporation was running under loss.
He further submits that as per Clause 6 of the Memorandum of Settlement, the applicability of DA, HRA & CCA in par with the State Government to the employee of
the Corporation has been extended however, with a rider that as per the Corporation Circular issued in that regard from time to time. For easy reference, Clause 6 of the Memorandum of Settlement is extracted as under:
"6. Revision of D.A., H.R.A., & C.C.A:-
The D.A., H.R.A. & C.C.A. shall be sanctioned as per the State Government pattern to the employees from time to time as per KSBPE circular issued in this regard from time to time."
submissions as well as Clause 6 stated supra, observed that the settlement provides for payment of DA, HRA and CCA in par with Government employee, but subject to the
HC-KAR
discretion conferred by virtue of the stipulation at Clause 6 with the Corporation to issue a Circular to that effect for payment of allowances stated supra. In these circumstances, the Writ Court holds that the contention of the petitioner that withholding DA granted by the Government to its employees and non-consideration of the same in terms of the settlement is impermissible to the Corporation has been declined by the Writ Court.
while being interpreted may have to take note of the discretion conferred by virtue of the stipulation that Circular is to be passed from time to time in that regard and such discretion could be exercised by the Corporation taking note of the financial health of the Corporation as well, rejected the Writ Petition. It is this order passed by the Writ Court is called in question in this appeal.
NC: 2026:KHC:20849-DB WA No. 1835 of 2024
HC-KAR
matter on several grounds on the basis of settlement arrived stated supra, but to the query of the Court with respect to Clause 6, wherein a discretion is embodied which says that the allowances shall be sanctioned in par with State Government employees as per KSBPE Circular issued in that regard from time to time, he is unable to answer any withholding against the settlement is impermissible, in the teeth of Clause 6.
NC: 2026:KHC:20849-DB WA No. 1835 of 2024
HC-KAR
which call for interference with the order at our hands. The
Writ appeal fails and accordingly is, dismissed .
Sd/(D K SINGH) JUDGE
Sd/(T.M.NADAF) JUDGE
TKN
List No.: 1 Sl No.: 20
3 issues framed by the court
Whether the Writ Court properly exercised its discretion in rejecting the petitioner's claim for Dearness Allowance based on the Corporation's financial discretion clause.
Whether Clauses of the settlement agreement regarding Dearness Allowance override the Corporation's right to consider its financial health before sanctioning revisions.
Whether the High Court should interfere with the Writ Court's order dismissing the writ petition challenging the non-grant of Dearness Allowance.
3 provisions across 3 enactments
SRI.B.S.GURUSWAMY
KARNATAKA HANDLOOM CORPORATION LIMITED
D K SINGH
T.M.NADAF
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
