Judgement

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MANU/KA/0475/1998
Equivalent Citation: [1999(81)FLR330], ILR 1999 KARNATAKA 178, 1998(6)KarLJ207, (1999)ILLJ932Kant, 1999(2)LLN330(Kar.)
IN THE HIGH COURT OF KARNATAKA AT BANGALORE
Writ Petition No. 35513 of 1993
Decided On: 16.09.1998
Appellants: Bhalachandra Krishnaji Kale
Vs.
Respondent: The Karnataka State Road Transport Corporation, Bangalore and
Ors.
Hon'ble Judges/Coram:
H.L. Dattu, J.
Counsels:
For Appellant/Petitioner/Plaintiff: Sri P.S. Manjunath, Adv.
For Respondents/Defendant: Smt. Sharada for Sri P.R. Ramesh, and Sri K.L.N. Rao,
Advs.
ORDER
1. Facts lie in a narrow compass and are not in serious dispute. Petitioner was an
employee officer of the Karnataka State Road Transport Corporation, herein after
referred to as the respondent-Corporation. After attaining the age of superannuation, he
retired from service on 28-2-1993. It is not in dispute the applicability of gratuity laws
to the respondent-Corporation. On the respondent's own showing, there was no
disciplinary enquiry held against the petitioner or was pending at the time of petitioner's
retirement from service.

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was deprived of this amount for nearly five months from the date of his retirement from
service, he is entitled to interest on that amount, since the employer had the benefit and
advantage of the use of the money which was rightfully due to the employee. Further
since the respondents have not assigned any reasons whatsoever for forfeiting the
balance amount of Rs. 16,681.45 only from the amounts payable under the head 'leave
encashment', their action requires to be declared as illegal and arbitrary and further a
direction requires to be issued to the respondents to make payment of the balance
amount of Rs. 16,681.45 with interest as claimed by the petitioner in his petition which
is far too less when compared to prevailing interest rate in the market as well as the
interest charged by financial and other banking institutions.
1 3 . In the result, petition is allowed and rule made absolute and further following
directions are issued to the respondent-Corporation to comply with the same within two
months from the date of receipt of certified copy of this Court's order.
(a) Respondent-Corporation is directed to calculate and pay interest at the rate
of 14% on Rs. 1,45,666.65 from the date of retirement till 6-5-1993.
(b) Respondent-Corporation is directed to pay the balance amount of gratuity in
a sum of Rs. 25,833/- with interest at 14% from the date of non-payment till
the date of payment.
(c) Respondent-Corporation is directed to pay the interest at the rate of 14% on
Rs. 57,675.15 from 1-3-1993 till 27-8-1993.
(d) Respondent-Corporation is directed to pay a sum of Rs. 16,681.45 with
interest at 14% from 17-8-1993 till the date of payment.
1 4 . With these observations and directions petition is disposed off. Ordered
accordingly.
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