THE SOCIAL WELFARE OFFICER vs SRI NIJAGUNA MURTHY

Court
Karnataka High Court

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WA No. 1974 of 2025


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IN THE HIGH COURT OF KARNATAKA AT BENGALURU


TH
DATED THIS THE 13 DAY OF OCTOBER, 2026

PRESENT

THE HON'BLE MR. JUSTICE D K SINGH

AND

THE HON'BLE MR. JUSTICE H.SHANTHI BHUSHAN

WRIT APPEAL NO. 1974 OF 2025 (L-PG)

BETWEEN:

1. THE SOCIAL WELFARE OFFICER
MYSORE TALUK, MYSURU.

2. THE PRINCIPAL SECRETARY TO GOVERNMENT
SOCIAL WELFARE DEPARTMENT,
VIKASA SOUDHA, BENGALURU-560 001.
…APPELLANTS
(BY SRI. S.H.RAGHAVENDRA, AGA)

AND:

1. SRI. NIJAGUNA MURTHY
S/O MALLANNA,
NO.10, REVENUE COLONY,
J P NAGAR, NEAR VITTALADHAMA,
MYSORE-570 023.

2. THE ASSISTANT LABOUR COMMISSIONER AND
CONTROLLING AUTHORITY
UNDER THE PAYMENT OF GRATUITY ACT 1972,
MYSORE DIVISION,
MYSORE DISTRICT-570 023.










Digitally signed
by B VEENA
KUMARI
Location: HIGH
COURT OF
KARNATAKA

…RESPONDENTS

THIS WRIT APPEAL FILED U/S 4 OF THE KARNATAKA
HIGH COURT ACT PRAYING TO (A) ALLOW THE WRIT APPEAL
AND (B) SET ASIDE THE ORDER DATED 10.06.2025 PASSED BY
THE LEARNED SINGLE JUDGE OF THIS HON’BLE COURT IN
WRIT PETITION No. 9245/2018 (L-PG) AND (C) GRANT SUCH

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OTHER ORDER OR ORDER AS DEEMS FIT UNDER THE FACTS
AND CIRCUMSTANCES OF THE CASE IN THE INTEREST OF
JUSTICE AND EQUITY.

THIS APPEAL, COMING ON FOR PRELIMINARY HEARING,
THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE D K SINGH
AND
HON'BLE MR. JUSTICE H.SHANTHI BHUSHAN

ORAL JUDGMENT

(PER: HON'BLE MR. JUSTICE D K SINGH)

The present intra Court appeal has been filed by the
State assailing the judgment and order dated 10.06.2025
passed by the Writ Court in Writ Petition No.9245/2018.

2. The parties are referred according to their
respective rankings before the Writ Court.

3. The first respondent herein approached the
Assistant Labour Commissioner and the Authority under
the Payment of Gratuity Act, 1972, contending that he was
initially appointed on 01.10.1983, regularised in service on
30.09.1993 and superannuated on 30.04.2013. His
grievance was that the appellants herein had computed his

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gratuity by reckoning his service only from the date of
regularisation, instead of from the date of his initial
appointment. Accordingly, he sought payment of the
differential amount of gratuity by taking into account his
service from 01.10.1983.

4. Upon consideration of the claim, the Assistant
Labour Commissioner and the Authority under the
Payment of Gratuity Act, held that the first respondent
was entitled to have his gratuity computed from the date
of his initial appointment, namely, 01.10.1983.
Consequently, the appellants were directed to pay the
balance amount of gratuity in accordance with the
calculation made by the Authority and to deposit the said
amount within thirty days. It was further directed that, in
the event of default, simple interest at the rate of 10% per
annum would be payable on the gratuity amount.

5. Aggrieved by the said order, the appellants
challenged the same before this Court in Writ Petition

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No.9245/2018. Their principal contention was that the
Authority had erred in directing computation of gratuity
from the date of initial appointment, i.e., 01.10.1983,
instead of from the date of regularisation. The appellants
maintained that the issue relating to the reckoning of
service for the purpose of gratuity was already the subject
matter of Writ Appeal in W.A.No.5810/2012 and therefore,
the order passed by the Authority was liable to be
interfered with. It was further brought to the notice of the
Writ Court that the proceedings in the said Writ Appeal
had been carried to the Supreme Court by way of a
Special Leave Petition and that the Supreme Court had
stayed the proceedings in the Writ Appeal. On that basis,
the appellants sought disposal of the Writ Petition in their
favour, having regard to the pendency of the issue before
the Supreme Court.

6. The Writ Court, upon considering the pleadings,
the material on record and the submissions advanced by
the parties, disposed of the Writ Petition by order dated

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10.06.2025. The Writ Court reserved liberty to the
appellants to reopen the matter and agitate their
contentions, depending upon the outcome of the
proceedings pending before the Supreme Court. At the
same time, it directed the appellants to release the
amount of gratuity payable to the first respondent, subject
to the first respondent furnishing an undertaking that, in
the event the issue was ultimately decided against him in
the pending Special Leave Petition, he would refund the
amount received, together with interest at the rate of 6%
per annum from the date of receipt until the date of
repayment.

7. Aggrieved by the order passed by the Writ
Court, the appellants have preferred the present intra -
Court appeal.

8. We have considered the submissions advanced
by the learned counsel appearing for the parties and
perused the material on record. The controversy raised in

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the present appeal concerns the date from which the first
respondent’s service is required to be reckoned for the
purpose of computing gratuity. Admittedly, the said issue
is pending consideration before the Supreme Court. In the
circumstances, it would neither be appropriate nor
necessary for this Court to express any opinion on the
merits of the underlying controversy, particularly when the
question is already engaging the attention of the Supreme
Court.

9. On an examination of the order passed by the
Writ Court, we find that the course adopted therein
adequately safeguards the interests of both parties. The
first respondent is permitted to receive the gratuity
amount, subject to furnishing an undertaking to refund the
amount, together with interest at the rate of 6% per
annum from the date of receipt until the date of
repayment, in the event the issue is ultimately decided
against him in the pending proceedings before the
Supreme Court. The order thus balances the immediate

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entitlement claimed by the employee against the right of
the appellants to seek appropriate relief in the event of an
adverse decision on the question of law.

10. We find no infirmity in the approach adopted by
the Writ Court warranting interference in the present
appeal. The order is a considered one, passed having
regard to the pendency of the issue before the Supreme
Court and adequately protects the interests of the parties
without prejudging the question awaiting determination by
the Supreme Court.

11. In the event the Supreme Court answers the
question of law in favour of the appellants herein and
against the respondent in the pending Special Leave
Petition, the respondent shall be liable to refund the
amount received by him pursuant to the order passed by
the Writ Court. Upon issuance of notice calling upon him to
refund the said amount, the respondent shall refund the
entire amount received, together with interest at the rate

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of 6% per annum from the date of receipt until the date of
repayment, within thirty days from the date of receipt of
such notice. The respondent shall not delay or evade
compliance with the said direction. In the event of failure
to refund the amount within the stipulated period of thirty
days, the outstanding amount shall thereafter carry
interest at the rate of 18% per annum until its actual
repayment.

12. In view of the foregoing, we find no merit in the
dismissed
writ appeal. Accordingly, the writ appeal is ,
and the order dated 10.06.2025 passed by the learned
affirmed
single Judge in W.P.No.9245/2018 is . The
parties shall abide by the directions contained therein.

Sd/-
(D K SINGH)
JUDGE


Sd/-
(H.SHANTHI BHUSHAN)
JUDGE
BVK; List No.: 1 Sl No.: 6