Disposed¶42

Sri. R. Gangaiah v. the Managing Director

Karnataka HC18 Feb 2026WP/14995/2022

Case brief

AI extract

What is this about?

Karnataka High Court (Bengaluru), single judge (Anant Ramanath Hegde, J.), WP No. 14995 of 2022 (S-KSRTC), decided 18.02.2026. Interest on delayed payment of service benefits / earned leave benefit by BMTC; 6% interest awarded citing financial difficulty and Covid period; 9% default rate if payment not made within 12 weeks; State of Andhra Pradesh v. Dinavahi Lakshmi Kameswari (2021) 11 SCC 543 applied; Division Bench decision awarding 9% distinguished as per incuriam for not referring to the Apex Court judgment; Co-ordinate Bench decision in Sri Yallappa (WP No.106898/2025) relied on; writ petition disposed of.

What did the court decide?

Interest at 6% per annum on the delayed payment of service benefits; 9% per annum if payment is not made within 12 weeks. ¶42

Sri. R. Gangaiah Vs the Managing Director — Writ and Judicial Review | Karnataka HC (2026)

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NC: 2026:KHC:10151 WP No. 14995 of 2022

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18^TH DAY OF FEBRUARY, 2026

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BEFORE

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THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE WRIT PETITION NO. 14995 OF 2022 (S-KSRTC)

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BETWEEN:

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SRI. R. GANGAIAH, S/O. LATE RAMAIAH, AGED ABOUT 62 YEARS, R/AT NO. 38, 1ST FLOOR, 2^ND CROSS, 2^ND STAGE, KHBCS LAYOUT, KURUBARAHALLI, BENGALURU-560 078.

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…PETITIONER

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(BY SRI. CHOWDAPPA D N.,ADVOCATE) AND:

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Digitally signed by PRAMILA G V Location: HIGH COURT OF KARNATAKA

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THE MANAGING DIRECTOR, BANGALORE METROPOLITAN TRANSPORT CORPORATION, CENTRAL OFFICE, K. H. ROAD, SHANTHINAGAR, BENGALURU-560 027.

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…RESPONDENT

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(BY SMT H R RENUKA .,ADVOCATE)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TODIRECT THE RESPONDENT TO PAY INTEREST OF RS.1,63,086/(RUPEES ONE LAKHS SIXTY THREE THOUSAND AND EIGHTY SIX ONLY) AT THE RATE OF 12 PERCENT P.A. FOR DELAY IN PAYMENT OF THE BENEFIT OF EARNED LEAVE IMMEDIATELY ON BOTH OCCASIONS.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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NC: 2026:KHC:10151 WP No. 14995 of 2022

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HC-KAR

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CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE

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ORAL ORDER

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Heard the learned counsel appearing for the petitioner and

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the learned counsel appearing for the respondent.

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The dispute is relating to the interest payable on the delayed payment of service benefits payable to the petitioneremployee by the respondent-Corporation.

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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 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.

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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

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1 WA No.100193/2024

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3 - NC: 2026:KHC:10151 WP No. 14995 of 2022

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HC-KAR

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Hubballi Rural Division and connected matters² and would

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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.

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The Court has considered the contentions raised at

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the Bar and perused the records.

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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

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2 WP No.106898/2025 & Connected matters

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3 (2021) 11 SCC 543

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4 - NC: 2026:KHC:10151 WP No. 14995 of 2022

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HC-KAR

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Andhra Pradesh (supra) which is with reference to a similarCorporation 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%.

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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.

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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.

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9. Petition is disposed of accordingly.

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Sd/(ANANT RAMANATH HEGDE) JUDGE

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CHS List No.: 1 Sl No.: 0

Sri. R. Gangaiah v. the Managing Director

Case brief

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Sri. R. Gangaiah v. the Managing Director

Case brief

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