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IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
PRADEEP SINGH YERUR, J
Rachoti, S/O. Chandrashekharayya Balaganurmath – Appellant
Versus
Management Of Nwkrtc, Hubballi-Dharwad City Division, Represented By Its Divisional Controller – Respondent
ORDER :
Pradeep Singh Yerur, J.
This petition is filed by the petitioner seeking a writ of mandamus for a direction to the respondent to pay interest at the rate of 12% per annum on the belated payment of leave encashment benefit as per the request made in the representation dated 13.12.2024.
2. Petitioner was appointed as Technical Assistant in the respondent-Corporation in the year 1990. After serving the Corporation for more than 33 years, he retired from service with effect from 30.06.2023. Immediately after the retirement, the terminal benefits i.e., leave encashment benefit was not paid. The respondent belatedly paid leave encashment benefit by way of cheque dated 23.05.2024 after lapse of 11 months and no interest was paid on the said amount. It is contended by learned counsel for the petitioner that as per the Circular No.58 dated 09.07.1998, the terminal benefits and all other benefits are required to be paid as on date of retirement itself and the same does not indicate the consequences for non-payment of the said benefits belatedly.
3. This being the state of affairs, the petitioner approached the respondent-Corporation requesting for payment of interest for the delayed peri
Employees are entitled to interest on delayed payment of leave encashment benefits, which must be paid promptly. In case of delays, interest at rates established by previous judgments may be enforced....
Retired employees are entitled to interest on delayed leave encashment payments, and the court can enforce reasonable interest rates despite the employer's financial constraints.
Retiral dues are property under Article 300A; unexplained delays in payment warrant interest at 6% per annum, with penal compensation for further delays.
The duty to pay terminal benefits on the date of retirement and the serious prejudice caused by belated disbursement justified the payment of interest on the belated payment.
Court directed 6% interest on delayed terminal benefits post-retirement, accepting respondent's fair submission.
Excess payments made to an employee due to erroneous calculations by the employer cannot be recovered from the employee's benefits unless specific legal conditions are met, protecting the employee's ....
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