SRI ABDUL RAHAMAN SHARIFF vs HINDUSTAN MACHINE TOOLS LTD (MBX)

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HC-KAR
NC: 2026:KHC:57332
WP No. 314 of 2024


CNR: KAHC010001792024







IN THE HIGH COURT OF KARNATAKA AT BENGALURU

TH
DATED THIS THE 12 DAY OF OCTOBER, 2026

BEFORE

THE HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD

WRIT PETITION NO. 314 OF 2024 (L-PG)

BETWEEN:

SRI ABDUL RAHAMAN SHARIFF
S/O LATE ABDUL RAHIM
AGED ABOUT 68 YEARS
NO. 35, 1ST CROSS, ROSHAN COLONY
RD
JAYANAGARA 3 BLOCK
EAST BANGALORE-560041.
…PETITIONER
(BY SRI. NARASIMHA MURTHY L., ADVOCATE)








AND:

1. HINDUSTAN MACHINE TOOLS LTD (MBX)
NO. 59, HMT BHAVAN
BELLARY ROAD, BANGALORE-560032.
REP. BY ITS CHAIRMAN AND
MANAGING DIRECTOR
REG.NO. CIN-UO 2922 KA 1999
GIO25572 AS PER COMPANY ACT 1946.

2. THE GENERAL MANAGER
HINDUSTAN MACHINE TOOLS LTD (HMT)
BANGALORE COMPLEX, JALAHALLI
BANGALORE-560013.
…RESPONDENTS
(BY SMT. SAVITHA T H., ADVOCATE FOR R1 & R2)



THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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HC-KAR
NC: 2026:KHC:57332
WP No. 314 of 2024


CNR: KAHC010001792024


QUASH THE IMPUGNED LETTER REF. MBX/HRM/90-94/23
DATED 02/11/2023 (VIDE ANNEXURE-J), ISSUED BY THE R1
AUTHORITY AND DIRECT THE R2 COMPANY TO CONSIDER THE
REPRESENTATIONS DATED 10/06/2014, 30/12/2014,
19/05/2015 AND 15/12/2015 VIDE ANNEXURE-E TO E3 AND
DATED 03/04/2018, 30/09/2023 AND 14/10/2023 VIDE
ANNEXURE-H TO H2 IN ACCORDANCE WITH LAW AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING
‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD

ORAL ORDER
This writ petition is filed under Articles 226 and 227
of the Constitution of India, seeking the following reliefs:
A) ISSUE a Writ of Certiorari or a writ of like nature
quashing the impugned letter Ref: MBX/HRM/90-
94/23 dated-02-11-2023 (Vide Annexure-J), issued
by the 1st Respondent authority.

B) ISSUE a Writ of mandamus or a writ of like
nature directing the 2nd respondent-company to
consider the representations dated-10-06-2014,
30-12-2014, 19-05-2015, and 15-12-2015 vide
Annexures-E to E3 and dated-03-04-2018, 30-09-
2023 and 14-10-2023 vide Annexure-H to H2 in
accordance with law, in the interest of justice and
equity.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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HC-KAR
NC: 2026:KHC:57332
WP No. 314 of 2024


CNR: KAHC010001792024


C) PASS any other appropriate order as this Hon'ble
Court deems fit in the facts and Circumstances of
the case, including awarding costs of this Writ
Petition, in the interests of justice and equity.


2. The brief facts of the case are as follows:
The petitioner is a former employee of the
respondent - Company Limited. After serving the
respondent for more than three decades, the petitioner
retired from service upon attaining the age of
superannuation on 29.06.2013, as evidenced by
Annexure-A.
2. As the petitioner was not paid his retirement
benefits, including gratuity, he approached the Controlling
Authority under Section 7 of the Payment of Gratuity Act,
1972 (hereinafter referred to as the ‘Gratuity Act’ ). By
order dated 03.12.2014, produced as Annexure-B, the
Controlling Authority allowed the application and directed
the respondent to pay a sum of Rs.6,38,079/- towards
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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HC-KAR
NC: 2026:KHC:57332
WP No. 314 of 2024


CNR: KAHC010001792024


gratuity, together with interest at the rate of 10% per
annum from 01.07.2013 until the date of final payment.
3. The respondent paid the gratuity amount on
23.10.2014 but failed to pay the interest accrued thereon
at the rate of 10% per annum for the period from
01.07.2013 to 23.10.2014. Consequently, the petitioner
submitted a representation to the respondent on
30.12.2014, as evidenced by Annexure-E1, seeking
payment of the accrued interest.
4. As the said representation was not considered, the
petitioner approached this Court by filing W.P. Nos.90–
94/2016. By order dated 30.03.2016, this Court directed
the respondent to consider and dispose of the
representation in accordance with law.
5. However, by the impugned communication dated
02.11.2023, produced as Annexure-J, the respondent
rejected the petitioner’s representation stating that
Company’s inability to pay interest due to severe financial
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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HC-KAR
NC: 2026:KHC:57332
WP No. 314 of 2024


CNR: KAHC010001792024


crisis and the same shall be paid as soon as the financial
position is improved. Aggrieved by the said
communication, the petitioner has approached this Court
in the present writ petition.
6. Section 7 of the Gratuity Act provides for the
determination of the amount of gratuity payable to an
employee. In exercise of its powers under the said
provision, the Controlling Authority determined the
amount of gratuity payable to the petitioner at
Rs.6,38,079/- and directed the respondent to pay interest
thereon at the rate of 10% per annum from 01.07.2013
until the date of final payment vide Annexure-B. The
operative portion of the order is extracted hereunder:
”1. The claim application is allowed
2. The respondent is directed to pay the gratuity
covering the training period also. The calculation is
as follows.
Rs.29,892/-X 15 X 37yrs of service = Rs.6,38,079/-
26
3. The respondent is also directed to pay the simple
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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HC-KAR
NC: 2026:KHC:57332
WP No. 314 of 2024


CNR: KAHC010001792024


interest on the gratuity amount @ 10% p.a. from
01/7/2013 till the date of final payment.

4. Both gratuity calculated above and awarded
interest should be settled within a period of 30 days
from the date of receipt of this Order.”

7. The petitioner’s sole grievance is that the interest
awarded at the rate of 10% per annum has not been paid
by the respondent. The Gratuity Act itself provides a
mechanism for the recovery of the amount payable under
Section 8 thereof.
8. Section 8 of the Gratuity Act provides that, if any
amount of gratuity payable under the Act is not paid by
the employer within the prescribed time to the person
entitled thereto, the Controlling Authority shall, on an
application made in this behalf by the aggrieved person,
issue a certificate for the amount due to the Collector, who
shall recover the same, together with compound interest
thereon at such rate as the Central Government may, by
notification, specify.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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HC-KAR
NC: 2026:KHC:57332
WP No. 314 of 2024


CNR: KAHC010001792024


9. Section 8 of the Gratuity Act is extracted

hereunder:
“8. Recovery of Gratuity.- If the amount of gratuity
payable under this Act is not paid by the employer,
within the prescribed time, to the person entitled
thereto, the controlling authority shall, on an
application made to it in this behalf by the
aggrieved person, issue a certificate for that
amount to the Collector, who shall recover the
same, together with compound interest thereon at
such rate as the Central Government may, by
notification, specify from the date of expiry of the
prescribed time, as arrears of land revenue and pay
the same to the person entitled thereto:
Provided that the Controlling Authority shall,
before issuing a certificate under this section, give
the employer a reasonable opportunity of showing
cause against the issue of such certificate:
Provided further that the amount of interest
payable under this section shall, in no case, exceed
the amount of gratuity payable under this Act.”
10. In the present case, the gratuity payable to the
petitioner under the Gratuity Act has been determined by
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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HC-KAR
NC: 2026:KHC:57332
WP No. 314 of 2024


CNR: KAHC010001792024


the order produced as Annexure-B. However, the interest
awarded by the Controlling Authority has not been paid by
the respondent. In such circumstances, the appropriate
remedy available to the petitioner is to approach the
Controlling Authority by filing an application under Section
8 of the Gratuity Act for recovery of the amount due, in
accordance with law.
11. In view of the above, the following order is
passed:
ORDER

The writ petition is disposed of, reserving liberty to
the petitioner to approach the competent authority under
Section 8 of the Payment of Gratuity Act, 1972, for
recovery of the interest due, in accordance with law.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
(H.T. NARENDRA PRASAD)
JUDGE

CM
LIST NO.: 1 SL NO.: 43