Disposed¶9

Ramesh N v. Chief Traffic Manager

Karnataka HC18 Feb 2026WP/23791/2023

Case brief

AI extract

What is this about?

Keywords: interest on delayed payment of service benefits; leave encashment; BMTC; writ petition Articles 226/227; 6% interest; 9% default interest; 12 weeks; Covid period financial difficulty; per incuriam contention; State of Andhra Pradesh v. Dinavahi Lakshmi Kameswari (2021) 11 SCC 543; Divisional Controller NWKRTC v. Tanaji (WA No.100193/2024); Sri Yallappa v. NWKRTC (WP No.106898/2025); Karnataka High Court; Justice Anant Ramanath Hegde; disposed of.

What did the court decide?

Interest at 6% per annum on the delayed payment of service benefits; failing payment within 12 weeks, interest at 9% per annum which the respondent-Corporation cannot plead to reduce. ¶9

Ramesh N Vs Chief Traffic Manager — Writ and Judicial Review | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Interest at 6% per annum on the delayed payment of service benefits; failing payment within 12 weeks, interest at 9% per annum which the respondent-Corporation cannot plead to reduce.

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Issue for consideration

Whether the petitioners are entitled to interest on the delayed payment of service benefits (leave encashment) by the respondent-Corporation, and if so, at what rate.

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Court's answer

Considering the financial difficulty faced by the petitioner-Corporation, including the unprecedented difficult situation during the Covid period, the petitioners are entitled to interest at 6% per annum on the delayed payment.

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Ratio / Principle

If payment is not made within 12 weeks, the petitioners are entitled to 9% interest per annum, and in that situation the respondent-Corporation cannot plead for reduction of the interest rate.

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Detailed headnote1 paragraphs

Writ petition under Articles 226 and 227 of the Constitution by fifteen BMTC employees seeking interest at 12% per annum on delayed payment of leave encashment/service benefits, pursuant to representations dated 07/06/2022 to 03/06/2023 (Annexure-B1 to B15). Petitioner's counsel relied on the Division Bench decision in Divisional Controller, NWKRTC v. Tanaji (WA No.100193/2024) awarding 9%; respondent's counsel relied on the Co-ordinate Bench in Sri Yallappa v. NWKRTC (WP No.106898/2025) awarding 6%, arguing the Division Bench decision was per incuriam for not referring to State of Andhra Pradesh v. Dinavahi Lakshmi Kameswari (2021) 11 SCC 543, where the Supreme Court reduced interest from 12% to 6% for a similar corporation (APSRTC) noticing its financial condition. Holding that the Division Bench judgment contained no reference to the Apex Court decision, and considering the Corporation's financial difficulty including the unprecedented Covid-period situation, the Court held the petitioners entitled to 6% interest on the delayed payment, with a default clause that non-payment within 12 weeks attracts 9% per annum which the Corporation cannot plead to reduce. Petition disposed of accordingly.

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NC: 2026:KHC:10151 WP No. 23791 of 2023

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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

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WRIT PETITION NO. 23791 OF 2023 (S-KSRTC)

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BETWEEN:

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RAMESH N, S/O M.M. NARAYANA, AGE 63 YEARS, R/A NO 16/1, 1^ST CROSS, 1^ST MAIN DINNUR, R .T. NAGAR, BENGALURU - 560032.

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SHESHADRI S V, S/O VENKATARAM IYENGAR, AGE 63 YEARS, R/A S - 824, 5^TH MAIN ROAD, SRIRAMPURA 1^ST STAGE, MYSURU - 570023.

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

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RAJGOPAL, S/O PAPI REDDY, AGE 63 YEARS, R/A NO 46, 2^ND FLOOR, FLAT NO B - 27, KPT SRUSTI APARTMENT, MANIVALAS GARDEN KAMALANGAR BENGALURU - 560026.

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HEJJAPPA S/O GANGAPPA, AGE 63 YEARS, R/A NAJARABHAD VEERSAGRA, DEENANAYAK DEPOT ROAD, TUMAKURU - 572104.

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JAYARAJU A C, S/O CHIKKANNA, AGE 64 YEARS

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2 - NC: 2026:KHC:10151 WP No. 23791 of 2023

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HC-KAR

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R/A NO 403, ESTEEM FORM APARTMENTS, DAISY BLOCK, 3^RD CROSS, 1^ST STAGE, KURUBARAHALLI, BANGALORE - 560086.

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PRABHURAJE ARAS, S/O LINGARAJU ARAS, AGED 65 YEARS, R/A NO 06, INDRAPRASTHA, APARTMENT NEAR , B E M L LAYOUT, 5^TH STAGE, RAJARAJESHWARINAGAR, BENGALURU - 560098.

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RAMESH M, S/O MARIYAPPA G, AGE 64 YEARS R/AT NO 162, 7^TH CROSS, LAKSHMIPURA, KRISHNADEVARAYA ROAD, GAVIPURA BANGALORE - 560019.

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CHALLUVARAJU, S/O MARAPPA B M, AGE 64 YEARS R/A NO 03, AANNYAPPA ROAD, DODDAMAVAHALLI BENGALURU - 560004.

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GURURAJ P V, S/O VEERAYYA M P, AGE 63 YEARS, R/A BI 146, 3^RD MAIN ROAD, 3^RD CROSS, BEHIND GANESH BHAVAN HANUMANTHANAGAR, GAVIPURA EXTENSION, BANGALORE - 560019.

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NANNE GOWDA, S/O GUTAPPA, AGE 63 YEARS, R/AT NEAR MARUTHI THEATRE, RAJAGOPALANAGARA, PEENYA 2^ND STAGE, BENGALURU SOUTH BENGALURU - 562157.

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3 - NC: 2026:KHC:10151 WP No. 23791 of 2023

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HC-KAR

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VENKATAPPA M N, S/O NARAYANA SHETTY, AGE 65 YEARS, R/A NO 08, 1^ST CROSS, SANJEEVININAGARA, VEERANJANEYA TEMPLE ROAD, HEGGANAHALLI, BENGALURU - 560091.

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RAME GOWDA A S/O ANJANAPPA, AGE 62 YEARS R/ANO 06, 12^TH K CROSS, MUTTYALANAGRA, BENGALURU - 560054.

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RENKARADHYA R, AGED 63 YEARS, S/O RUDRAYYA N, R/A NO.5015 SUBHASHNAGARA, NELAMANGALA TALUK, BENGALURU RURAL DISTRICT - 562123.

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RAJAGOPAL H N, S/O LATE NARSAYYA, AGE 64 YEARS, R/ANO 1267C, 3^RD CROSS, 8^TH MAIN ROAD, BHUVANESHWARINAGARA, T DASARAHALLI, BENGALURU - 560057.

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SRINIVAS V, S/O VENKATESHYYA, AGE 64 YEARS, R/A NO 38, PIPE LINE MAIN ROAD, MALLESHWARAM BENGALURU - 560003, PETITIONER IS NOT CLAIMED THE BENEFIT OF SENIOR CITIZEN

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…PETITIONERS

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(BY SRI L SHEKAR.,ADVOCATE)

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4 - NC: 2026:KHC:10151 WP No. 23791 of 2023

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HC-KAR

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AND:

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CHIEF TRAFFIC MANAGER BMTC , CENTRAL OFFICES, K H ROAD, BENGALURU - 560027.

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DIVISIONAL CONTROLLER BMTC., CENTRAL DIVISION/ZONE, CENTRAL OFFICE, K H ROAD, BENGALURU - 560027.

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DIVISIONAL CONTROLLER, BMTC., SOUTH DIVISION/ZONE, CENTRAL OFFICE, K H ROAD, BENGALURU - 560027.

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DIVISIONAL CONTROLLER BMTC., WEST DIVISION / ZONE, CENTRAL OFFICE, K H ROAD, BENGALURU - 560027.

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DIVISINAL CONTROLLER, BMTC., NORTH DIVISION /ZONE, CENTRAL OFFICE, K H ROAD, BENGALURU - 560027.

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DIVISIONAL CONTROLLER BMTC., NORTH EAST DIVISION / ZONE, CENTRAL OFFICE, K H ROAD, BENGALURU - 560027.

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…RESPONDENTS

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(BY SMT RENUKA H R, ADVOCATE)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TODIRECT THE RESPONDENTS TO PAY INTEREST AT THE RATE OF 12 PERCENT PER ANNUM FOR DELAYED PAYMENT OF LEAVE ENCASHMENT BENEFITS TO THE PETITIONERS BY CONSIDERING THE REPRESENTATIONS DTD 07/06/2022, 21/09/2022, 19/05/2023, 28/11/2022, 18/11/2022,

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5 - NC: 2026:KHC:10151 WP No. 23791 of 2023

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HC-KAR

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07/12/2022, 06/07/2022, 17/12/2022, 16/05/2023, 04/06/2022 AND 03/06/2023 AS PER ANNEXURE-B1 TO B15.

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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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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

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and the learned counsel appearing for the respondent.

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The dispute is relating to the interest payable on

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the delayed payment of service benefits payable to the petitioner-employee 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

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Controller, North West Karnataka Road Transport Corporation, Dharwad Rural Division and Another vs

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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

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to be awarded.

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1 WA No.100193/2024

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6 - NC: 2026:KHC:10151 WP No. 23791 of 2023

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HC-KAR

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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 Hubballi Rural Division and connected matters² and would 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 Coordinate 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

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by the learned counsel for the petitioner, admittedly, there is

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2 WP No.106898/2025 & Connected matters

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3 (2021) 11 SCC 543

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7 - NC: 2026:KHC:10151 WP No. 23791 of 2023

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HC-KAR

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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 Andhra Pradesh (supra) which is with reference to a similar- Corporation 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

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difficulty faced by the petitioner-Corporation which is also due

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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

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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

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