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Judgment
M.G.S. Kamal, J
In these petitions, petitioners are claiming payment of interest at 12% per annum for the belated payment of cash benefits towards their leave encashment. For the purpose of immediate reference, the following tabulation is provided which indicate the dates of appointment and retirement of the petitioners, dates of payment of leave encashment amount and the amount paid:
Sl.
No
WP NO
Date of
appointment & as
Date of retirement
L.E Paid on
Amount paid (in Rs.)
1.
101540/24
1981 as Helper-B
30.04.2019
06.01.2021
4,43,360/-
2.
101978/24
1981 as Conductor
31.07.2019
19.03.2021
2,82,512/-
The issue involved in these matters has been adjudicated by this Court in its order dated 24.06.2024 passed in W.P. No.101519/2024 (S-KSRTC) & connected matters. This Court taking into consideration of the law laid down by (i) the Apex Court in the case of Vijay L Mehrotra Vs. State of U.P. and Others reported in 2000 II LLJ 253; (ii) the judgment of the Co-ordinate Bench of this Court in the case of Bhalachandra Krishnaji Kale Vs. Karnataka State Road Transport Corporation and Others reported in 1999 (81) Karnataka High Court 330; and (iii) the judgement of the Division Bench of this Court in the case of Shankaragouda Vs. The President and Others in W.A.No.100420/2023 (S-R) dated 07.12.2022; and also taking note of the Government Order No.AE 211 PEN 2021, Bengaluru, dated 22.02.2022, by which the State Government revised the payment of interest on the delayed payment on dearness allowances, gratuity and leave encashment, has directed the respondent – Corporation to pay the interest at the rate of 6% p.a. for the delayed payment of leave encashment.
Since, the subject matter of these present writ petitions are also identical and similar. These writ petitions are also partly allowed extending the benefit of the order passed in the aforesaid batch of Writ Petition No.101519/2024 (S-KSRTC) and connected matters. Accordingly, the following:
ORDER
(a) Petitions are partly allowed.
(b) Respondent-corporation is directed to pay the interest at the rate of 6% per annum for the delayed period of payment of leave encashment amount.
(c) It is made clear that the respondent-corporation shall pay the said interest at 6% per annum within a period of eight week from the date of receipt of certified copy of this order.
(d) It is further made clear that if in the event of any further delay on the part of respondent-corporation in paying the interest as directed above, in such an event respondent-corporation shall be liable to pay interest at the rate of 9% instead of 6% per annum for the delayed period.