IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8^TH DAY OF APRIL, 2026 BEFORE THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE WRIT PETITION NO. 30626 OF 2024 (L-PF)

BETWEEN:

THE MANAGING DIRECTOR, M/S, KARNATAKA MILK FEDERATION LTD, CENTRAL OFFICE, DR.M.H. MARIGOWDA ROAD, BANGALORE-560029, NOW REP. BY ITS DIRECTOR (ADMINISTRATION), REGISTERED UNDER CO.OP SOCIETIES ACT, 1959.

…PETITIONER (BY SRI PRASHANTH B R, ADVOCATE)

AND:

1. B K VENKATESH, S/O. LATE B.R. KRISHNAMURTHY RAO, AGED ABOUT 64 YEARS, NO.93/B, BEHIND MUNESHWARA TEMPLE, NEAR SCHOLL OF INDIA, JAYARAM LAYOUT, Digitally signed OLD SAMPEGE, BHANERUGATA, by BELUR BENGALURU-560083.

RANGADHAMA NANDINI

2. LABOUR OFFICER AND CONTROLLING AUTHORITY Location: HIGH COURT OF UNDER PAYMENT OF GRATUITY ACT 1972, KARNATAKA BANGALORE, DIVISION-6, BANGALORE-560029.

3. THE ASSISTANT LABOUR COMMISSIONER.

AND APPELLATE AUTHORITY UNDER PAYMENT OF GRATUITY ACT 1972, BANGALORE DIVISION-4, KARMIKA BAVANA, BANARGATTA ROAD, BANGALORE-560029.

…RESPONDENTS (BY SRI NAIK V S, ADVOCATE FOR R1, SRI M RAJAKUMAR, AGA FOR R2 AND R3)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DTD. 12.05.2023 PASSED BY THE CONTROLLING AUTHORITY UNDER PAYMENT OF GRATUITY ACT, 1972 IN NO. SANKYA KAABE/PGA/CR-60/2021-22 AT ANNX-A.QUASH THE ORDER DTD. 26.03.2024 PASSED BY THE ASSISTANT LABOUR COMMISSIONER AND APPEALLATE AUTHORITY UNDER PAYMENT OF GRATUITY ACT 1972, IN APGA/CR-15/2023-24 AT ANNX-B.

THIS PETITION, COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE

ORAL ORDER

This case was disposed of vide order dated 01.04.2026.

While passing the said order, the Court has recorded the submission made by the learned counsel for respondent No.1 who made a statement that respondent No.1 does not claim the benefit of interest awarded by the Appellate Authority. However, before the order is signed, the learned counsel for respondent No.1 has moved a memo dated 02.04.2026 stating that the concession is inadvertently made and requested the matter to be listed and to hear further. Accordingly, the matter is listed on 08.04.2026 for further hearing.

2. This petition is filed assailing the order dated

12.05.2023 passed by the Controlling Authority as well as the order dated 26.03.2024 passed by the Appellate Authority under the Payment of Gratuity Act, 1972 (for short, 'the Act of

1972').

3. In terms of the order dated 12.05.2023 passed by the Controlling Authority, the petitioner-employer was directed to pay Rs.3,02,320/- towards gratuity along with interest at the rate of 10% per annum from 29.03.2022 till payment. This order is accepted by the petitioner. However, the workman being aggrieved by denial of interest for certain period, filed an appeal before the Appellate Authority.

4. The Appellate Authority, in terms of the order dated

26.03.2024 has allowed the appeal and granted interest on the difference amount from 01.03.2021 at the rate of 10% per annum.

5. The employer is before this Court assailing the aforementioned two orders.

6. It is to be noticed that, the order passed by the Controlling Authority was not questioned by the petitioner-

employer.

7. In terms of the order dated 12.05.2023, the Controlling Authority has calculated the tenure of four years where the respondent-workman was working as apprentice.

8. Learned counsel for the petitioner would submit that, under the Act of 1972, the apprentice is not entitled to payment of gratuity for the period, during which he worked as an apprentice. Learned counsel would refer to Section 2(e) of the Act of 1972. In addition, it is also urged that there was an error in calculating the payment of gratuity payable to the workman and that has to be rectified.

9. Learned counsel for the respondent-workman would urge that, the petitioner-employer opposed the claim for payment of gratuity for the period during which the workman was working as apprentice and the said co