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NC: 2026:KHC-D:6032

WP No. 102094 of 2021

HC-KAR

IN THE HIGH COURT OF KARNATAKA, AT DHARWAD

DATED THIS THE 24^TH DAY OF APRIL, 2026

BEFORE

THE HON'BLE MS. JUSTICE JYOTI M

WRIT PETITION NO. 102094 OF 2021 (L-PG)

BETWEEN:

KARNATAKA VIKAS GRAMEEN BANK,

HEAD OFFICE, POST BOX NO.111,

BELGAUM ROAD, DHARWAD-580 008,

REPRESENTED BY ITS CHAIRMAN.

… PETITIONER

(BY SRI. GIRISH V. BHAT, ADVOCATE)

AND:

1. THE APPELLATE AUTHORITY,

UNDER PAYMENT OF GRATUITY ACT, 1972 AND

DEPUTY CHIEF LABOUR COMMISSIONER (C),

BANGALORE, OFFICE OF THE DEPUTY CHIEF

LABOUR COMMISSIONER (CENTRAL),

SHRAM SADAN, 3^RD CROSS, 3^RD MAIN,

TUMKUR ROAD, YESHWANTHPUR,

BANGALORE-22.

S AA YUM BREENDsSADiAYi Egg UMn Site HBRadl NE by E UyN R 2. THE ASSISTANT LABOUR COMMISSIONER (CENTRAL)

DESHNURLHOKo AFIcG RaH Nti AoCn TO: AU KR

A

T

AND THE CONTROLLING AUTHORITY,

UNDER PAYMENT OF GRATUITY ACT, 1972,

OPPOSITE HDMC PARK, BHAVANI NAGAR,

LAST BUS STOP, BHAVANI NAGAR,

HUBLI-580 023.

3. G.R. KULKARNI,

AGE: YEARS, OCC. RETIRED OFFICER,

R/O. C/O. UDAY MAMANACHAR,

NO.3393, MES HOUSING SOCIETY,

LAXMI NAGAR, HINDALAGA,

BELAGAVI-591 108.

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NC: 2026:KHC-D:6032

WP No. 102094 of 2021

HC-KAR

… RESPONDENTS

(BY SRI. P.N. HATTI, HCGP FOR R1 TO R2;

NOTICE TO R3 IS SERVED AND UNREPRESENTED)

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF

THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS.

THIS WRIT PETITION IS LISTED FOR PRELIMINARY

HEARING IN ‘B’ GROUP, THIS DAY, AN ORDER IS MADE AS

UNDER:

ORAL ORDER

Sri.Girish V.Bhat., counsel for the petitioner and

Sri.P.N.Hatti., HCGP for respondents 1 and 2 have appeared in

person.

2. The petition is filed seeking following reliefs:

“a) Issue writ or order or direction in the nature of

Certiorari quashing the Order dated 07.08.2020 in Appeal

No.36(408)/2019-B1 passed by respondent No.1 produced

as per ANNEXURE-A

b) Issue any other writ or direction which this Hon’ble

deems fit to meet the ends of justice.”

3. The order dated 07.08.2020 passed by the Appellate

Authority is called into question in this writ petition on several

grounds as set out in the memorandum of writ petition.

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NC: 2026:KHC-D:6032

WP No. 102094 of 2021

HC-KAR

4. Counsel for the respective parties urged several

contentions. The Court has heard the arguments advanced and

perused the records with care.

5. The third respondent retired from service on

31.05.2015. The petitioner bank calculated and paid the gratuity

payable under the law. However, the third respondent filed an

application on 10.03.2016 seeking payment of the difference in

gratuity. The Controlling Authority, upon an extensive

consideration of the contentions urged by both parties, dismissed

the claim on 18.05.2018. In appeal, however, the Appellate

Authority recalculated the gratuity and directed the petitioner to

pay an additional sum exceeding ₹10,00,000/-.

This direction is untenable. The reason is apparent. The

Payment of Gratuity Act, 1972, originally capped the maximum

gratuity payable at ₹10,00,000/-. The statutory ceiling is

squarely applicable to the facts and circumstances of the present

case. The Appellate Authority, in disregarding the statutory

mandate, failed to have regard to relevant considerations.

Consequently, the order of the Appellate Authority is liable to be

quashed, and it is hereby quashed.

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NC: 2026:KHC-D:6032

WP No. 102094 of 2021

HC-KAR

6. Accordingly, the order dated 07.08.2020 passed by

the Appellate Authority vide Annexure-A stands quashed.

7. Resultantly, the writ petition is allowed

Sd/-

(JYOTI M)

JUDGE

MRP

LIST NO.: 1 SL NO.: 53