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The Management Of Nwkrtc Dharwad Rural ... vs Shri Nagappa S/O Ningappa Hakki
2023 Latest Caselaw 10710 Kant

Citation : 2023 Latest Caselaw 10710 Kant
Judgement Date : 15 December, 2023

Karnataka High Court

The Management Of Nwkrtc Dharwad Rural ... vs Shri Nagappa S/O Ningappa Hakki on 15 December, 2023

                                                 -1-
                                                        NC: 2023:KHC-D:14742
                                                            WP No. 104870 of 2023
                                             C/W. WP NOS. 104337, 104361, 104362,
                                                  104883, 105118, 105131, 105666,
                                                105668, 105672 and 105766 of 2023


                       IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

                             DATED THIS THE 15TH DAY OF DECEMBER, 2023

                                              BEFORE
                        THE HON'BLE MR JUSTICE ANANT RAMANATH HEGDE
                          WRIT PETITION NO. 104870 OF 2023 (L-KSRTC)
                                                C/W
                             WRIT PETITION NOS. 104337, 104361, 104362,
                              104883, 105118, 105131, 105666, 105668,
                                105672 AND 105766 OF 2023 (L-KSRTC)

                      IN WP NO. 104870/2023
                      BETWEEN:

                      THE MANAGEMENT OF
                      NWKRTC DHARWAD DIVISION,
                      REPRESENTED BY ITS DIVISIONAL CONTROLLER,
                      DIVISION DHARWAD,
                      REPTD. BY ITS CHIEF LAW OFFICER,
                      CENTRAL OFFICE, HUBLI, PIN-580001.
                                                                     ...PETITIONER
                      (BY SMT. VEENA HEGDE, ADVOCATE)
MOHANKUMAR
B SHELAR              AND:
Digitally signed by
MOHANKUMAR B
SHELAR
Date: 2023.12.22      SHRI. SHANKRAYYA S/O. MALLAYYA VIRKTHAMATH,
11:07:17 +0530
                      AGED ABOUT 64 YEARS, OCC. RETD. TRAFFIC
                      CONTROLLER, R/O. AT POST RAINAPUR,
                      TQ: YARAGATTI, DIST: BELAGAVI-580001.
                                                                    ...RESPONDENT
                      (BY SRI RAGHAVENDRA A. PUROHIT, ADVOCATE)

                           THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
                      OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT,
                      DIRECTION ON ORDER INCLUDING THE WRIT OF CERTIORARI
                      QUASHING THE AWARD DATED 01/04/2023 PASSED BY THE
                      PRESIDING OFFICER, LABOUR COURT, HUBLI IN APP.NO.105/2022
                      COPY OF WHICH IS PRODUCED AS ANNEXURE-C.
                             -2-
                                  NC: 2023:KHC-D:14742
                                      WP No. 104870 of 2023
                       C/W. WP NOS. 104337, 104361, 104362,
                            104883, 105118, 105131, 105666,
                          105668, 105672 and 105766 of 2023


IN WP NO. 104337/2023
BETWEEN:

THE MANAGEMENT OF
NWKRTC DHARWAD DIVISION,
REPRESENTED BY ITS DIVISIONAL CONTROLLER,
DIVISION DHARWAD,
REPTD. BY ITS CHIEF LAW OFFICER,
CENTRAL OFFICE, HUBLI, PIN-580001.
                                               ...PETITIONER
(BY SMT. VEENA HEGDE, ADVOCATE)

AND:

SHRI.RAVINDRA S/O. BHIMRAO KULKARNI
AGED ABOUT 63 YEARS, OCC. RETD. ASI,
R/O. #268, VEER SANGOLI RAYAN NAGAR,
BHARIDARKOPP, HUBALLI, DHARAWAD-580001.
                                              ...RESPONDENT
(BY SRI RAVI HEGDE, ADVOCATE)

     THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT,
DIRECTION ON ORDER INCLUDING THE WRIT OF CERTIORARI
QUASHING THE AWARD DATED 21/02/2023 PASSED BY THE
PRESIDING OFFICER, LABOUR COURT, HUBLI IN APP.NO.74/2022
COPY OF WHICH IS PRODUCED AS ANNEXURE-C.


IN WP NO. 104361/2023
BETWEEN:

THE MANAGEMENT OF
NWKRTC DHARWAD DIVISION,
REPRESENTED BY ITS DIVISIONAL CONTROLLER,
DIVISION DHARWAD,
REPTD. BY ITS CHIEF LAW OFFICER,
CENTRAL OFFICE, HUBLI, PIN-580001.
                                               ...PETITIONER
(BY SMT. VEENA HEGDE, ADVOCATE)

AND:

SHRI. LAXAMAN S/O. ARJUNAPPA GHATAGE
AGED ABOUT 67 YEARS, OCCU: RETD. DRIVER,
                             -3-
                                  NC: 2023:KHC-D:14742
                                       WP No. 104870 of 2023
                        C/W. WP NOS. 104337, 104361, 104362,
                             104883, 105118, 105131, 105666,
                           105668, 105672 and 105766 of 2023


R/O. BASAVANAGAR, PART-I, HALIYAL ROAD,
DHARAWAD-580001.
                                               ...RESPONDENT
(BY SRI RAVI HEGDE, ADVOCATE)

     THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT,
DIRECTION ON ORDER INCLUDING THE WRIT OF CERTIORARI
QUASHING THE AWARD DATED 10/02/2023 PASSED BY THE
PRESIDING OFFICER, LABOUR COURT, HUBLI IN APP.NO.87/2022
COPY OF WHICH IS PRODUCED AS ANNEXURE-C.


IN WP NO. 104362/2023
BETWEEN:

THE MANAGEMENT OF
NWKRTC DHARWAD DIVISION,
REPRESENTED BY ITS DIVISIONAL CONTROLLER,
DIVISION DHARWAD, REPTD. BY ITS CHIEF LAW
OFFICER, CENTRAL OFFICE, HUBLI, PIN-580001.
                                                ...PETITIONER
(BY SMT. VEENA HEGDE, ADVOCATE)

AND:

SHRI. BASAPPA S/O. GANAGAPPA ASHTAGI
AGED ABOUT 60 YEARS, OCC: RETD DRIVER,
R/O. UPPINABETAGERI, TQ & DIST: DHARAWAD-580001.
                                             ...RESPONDENT
(BY SRI RAVI HEGDE, ADVOCATE)

     THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT,
DIRECTION ON ORDER INCLUDING THE WRIT OF CERTIORARI
QUASHING THE AWARD DATED 04/02/2023 PASSED BY THE
PRESIDING OFFICER, LABOUR COURT, HUBLI IN APP.NO.82/2022
COPY OF WHICH IS PRODUCED AS ANNEXURE-C.


IN WP NO.104883/2023
BETWEEN:

THE MANAGEMENT OF
NWKRTC DHARWAD DIVISION,
                             -4-
                                  NC: 2023:KHC-D:14742
                                       WP No. 104870 of 2023
                        C/W. WP NOS. 104337, 104361, 104362,
                             104883, 105118, 105131, 105666,
                           105668, 105672 and 105766 of 2023


REPRESENTED BY ITS DIVISIONAL CONTROLLER,
DIVISION, DHARWAD,
REPTD. BY ITS CHIEF LAW OFFICER,
CENTRAL OFFICE, HUBLI, PIN-580001.
                                                ...PETITIONER
(BY SMT. VEENA HEGDE, ADVOCATE)

AND:

SHRI. MUREGAPPA S/O. GANAGAPPA GALI,
AGED ABOUT 63 YEARS,
OCCUPATION: RETD. TRAFFIC CONTROLLER,
R/O. BADIGER ONI, POST: MUMMIGATTI,
TQ AND DIST: DHARAWAD-580001.
                                               ...RESPONDENT
(BY SRI RAGHAVENDRA A. PUROHIT, ADVOCATE)

     THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT,
DIRECTION ON ORDER INCLUDING THE WRIT OF CERTIORARI
QUASHING THE AWARD DATED 01/04/2023 PASSED BY THE
PRESIDING OFFICER, LABOUR COURT, HUBLI IN APP.NO.107/2022
COPY OF WHICH IS PRODUCED AS ANNEXURE-C.


IN WP NO.105118/2023
BETWEEN:

THE MANAGEMENT OF
NWKRTC DHARWAD RURAL DIVISION,
REPRESENTED BY ITS DIVISIONAL CONTROLLER,
DIVISION DHARWAD,
REPTD. BY ITS CHIEF LAW OFFICER,
CENTRAL OFFICE, HUBLI, PIN-580001.
                                                ...PETITIONER
(BY SMT. VEENA HEGDE, ADVOCATE)
AND:

SHRI. IRAPPA S/O. BASAPPA BADIGER,
AGED ABOUT 63 YEARS,
OCCUPATION: RETD. ARTISAN,
R/O. # H.NO.68, KALIKA NILAYA,
                             -5-
                                  NC: 2023:KHC-D:14742
                                      WP No. 104870 of 2023
                       C/W. WP NOS. 104337, 104361, 104362,
                            104883, 105118, 105131, 105666,
                          105668, 105672 and 105766 of 2023


6TH CROSS, BASAVA NAGAR,
HALIYAL ROAD, DIST: DHARAWAD-580001.
                                              ...RESPONDENT
(BY SRI. RAVI HEGDE, ADVOCATE)


     THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT,
DIRECTION ON ORDER INCLUDING THE WRIT OF CERTIORARI
QUASHING THE AWARD DATED 01/04/2023 PASSED BY THE
PRESIDING OFFICER, LABOUR COURT, HUBLI IN APP.NO.97/2022
COPY OF WHICH IS PRODUCED AS ANNEXURE-C.


IN WP NO.105131/2023
BETWEEN:

THE MANAGEMENT OF
NWKRTC DHARWAD RURAL DIVISION,
REPRESENTED BY ITS DIVISIONAL CONTROLLER,
DIVISION DHARWAD,
REPTD. BY ITS CHIEF LAW OFFICER,
CENTRAL OFFICE, HUBLI, PIN-580001.
                                               ...PETITIONER
(BY SMT. VEENA HEGDE, ADVOCATE)

AND:

SHRI. NAGAPPA S/O. NINGAPPA HAKKI,
AGED ABOUT 63 YEARS, OCC: RETD. DRIVER,
R/O. #1264, INDIRA NAGAR,
TQ: ALNAVAR, DIST: DHARAWAD-580001.
                                              ...RESPONDENT

(BY SRI RAVI HEGDE, ADVOCATE)

     THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT,
DIRECTION ON ORDER INCLUDING THE WRIT OF CERTIORARI
QUASHING THE AWARD DATED 01/03/2023 PASSED BY THE
PRESIDING OFFICER, LABOUR COURT, HUBLI IN APP.NO.89/2022
COPY OF WHICH IS PRODUCED AS ANNEXURE-C.
                             -6-
                                  NC: 2023:KHC-D:14742
                                      WP No. 104870 of 2023
                       C/W. WP NOS. 104337, 104361, 104362,
                            104883, 105118, 105131, 105666,
                          105668, 105672 and 105766 of 2023


IN WP NO.105666/2023
BETWEEN:

THE MANAGEMENT OF
NWKRTC DHARWAD RURAL DIVISION,
REPRESENTED BY ITS DIVISIONAL CONTROLLER,
DIVISION, DHARWAD,
REPTD. BY ITS CHIEF LAW OFFICER,
CENTRAL OFFICE, HUBLI, PIN-580001.
                                               ...PETITIONER
(BY SMT. VEENA HEGDE, ADVOCATE)

AND:

SHRI. GANAGRAM S/O. MAHADEVAPPA BALGIKAR
AGED ABOUT 63 YEARS,
OCCUPATION: RETD. DRIVER,
R/O. #PLOT NO.59, 2ND CROSS,
NEAR GANAPATI TEMPLE,
DIST: DHARAWAD-580001.
                                              ...RESPONDENT
(BY SRI RAVI HEGDE, ADVOCATE)

     THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT,
DIRECTION ON ORDER INCLUDING THE WRIT OF CERTIORARI
QUASHING THE AWARD DATED 10/02/2023 PASSED BY THE
PRESIDING OFFICER, LABOUR COURT, HUBLI IN APP.NO.101/2022
COPY OF WHICH IS PRODUCED AS ANNEXURE-C.


IN WP NO.105668/2023
BETWEEN:

THE MANAGEMENT OF
NWKRTC DHARWAD RURAL DIVISION,
REPRESENTED BY ITS DIVISIONAL CONTROLLER,
DIVISION DHARWAD,
REPTD. BY ITS CHIEF LAW OFFICER,
CENTRAL OFFICE, HUBLI, PIN-580001.
                                               ...PETITIONER
(BY SMT. VEENA HEGDE, ADVOCATE)
                             -7-
                                  NC: 2023:KHC-D:14742
                                      WP No. 104870 of 2023
                       C/W. WP NOS. 104337, 104361, 104362,
                            104883, 105118, 105131, 105666,
                          105668, 105672 and 105766 of 2023


AND:

SHRI. SIDDAPPA S/O. DODDAPPA SANNATANGI
AGED ABOUT 63 YEARS,
OCCUPATION: RETD. ASST. ARTISAN,
R/O. # AT POST: AMMINBHAVI,
TQ & DIST: DHARAWAD-580001.
                                              ...RESPONDENT
(BY SRI RAVI HEGDE, ADVOCATE)

     THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT,
DIRECTION ON ORDER INCLUDING THE WRIT OF CERTIORARI
QUASHING THE AWARD DATED 04/02/2023 PASSED BY THE
PRESIDING OFFICER, LABOUR COURT, HUBLI IN APP.NO.66/2022
COPY OF WHICH IS PRODUCED AS ANNEXURE-C.


IN WP NO.105672/2023
BETWEEN:

THE MANAGEMENT OF
NWKRTC RURAL DIVISION,
REPRESENTED BY ITS DIVISIONAL CONTROLLER,
DIVISION DHARWAD,
REPTD. BY ITS CHIEF LAW OFFICER,
CENTRAL OFFICE, HUBLI, PIN-580001.
                                               ...PETITIONER
(BY SMT. VEENA HEGDE, ADVOCATE)

AND:

SHRI RAJASHEKAR S/O. SHAMARAYANAVAR
AGED ABOUT 63 YEARS,
OCCUPATION: RETD. DRIVER,
R/O. BEVINKATTI ONI, TQ: SAVADATTI,
DIST: DHARAWAD-590001.
                                              ...RESPONDENT
(BY SRI RAVI HEGDE, ADVOCATE)

     THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT,
DIRECTION ON ORDER INCLUDING THE WRIT OF CERTIORARI
QUASHING THE AWARD DATED 27/01/2023 PASSED BY THE
                                -8-
                                     NC: 2023:KHC-D:14742
                                         WP No. 104870 of 2023
                          C/W. WP NOS. 104337, 104361, 104362,
                               104883, 105118, 105131, 105666,
                             105668, 105672 and 105766 of 2023


PRESIDING OFFICER, LABOUR COURT, HUBLI IN APP.NO.75/2022
COPY OF WHICH IS PRODUCED AS ANNEXURE-C.


IN WP NO.105766/2023
BETWEEN:

THE MANAGEMENT OF
NWKRTC DHARWAD RURAL DIVISION,
REPRESENTED BY ITS DIVISIONAL CONTROLLER,
DIVISION DHARWAD,
REPTD. BY ITS CHIEF LAW OFFICER,
CENTRAL OFFICE, HUBLI, PIN-580001.
                                                    ...PETITIONER
(BY SMT. VEENA HEGDE, ADVOCATE)

AND:

SHRI. MAHABALESHWAR S/O. MASTI
DESHBHANDARI, AGED ABOUT 64 YEARS,
OCCUPATION: RETD. ARTISAN,
R/O. #AT. POST MALLAPUR,
TQ: HONNAVAR, UTTAR KANNADA.
                                                   ...RESPONDENT
(BY SRI RAVI HEGDE, ADVOCATE)


     THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT,
DIRECTION ON ORDER INCLUDING THE WRIT OF CERTIORARI
QUASHING THE AWARD DATED 01/03/2023 PASSED BY THE
PRESIDING OFFICER, LABOUR COURT, HUBLI IN APP.NO.98/2022
COPY OF WHICH IS PRODUCED AS ANNEXURE-C.

      THESE PETITIONS, COMING ON FOR DICTATING ORDERS,
THIS DAY, THE COURT MADE THE FOLLOWING:

                             ORDER

The petitioner in these petitions is questioning the order

passed by the Labour Court, Hubballi, under Section 33-C(2) of

NC: 2023:KHC-D:14742

C/W. WP NOS. 104337, 104361, 104362, 104883, 105118, 105131, 105666, 105668, 105672 and 105766 of 2023

the Industrial Disputes Act, 1947 (hereinafter referred to as

'the I.D.Act, 1947', for short).

2. Admittedly, respondents in all these petitions are

the former employees of the petitioner-Corporation. After

attaining the age of superannuation, the respondent-employees

have received the service benefits payable to them.

Respondents approached the Labour Court under Section 33-

C(2) of the I.D.Act, 1947 with a prayer to award interest on the

delayed payment of statutory benefits.

3. Before the Labour Court, the petitioner-Corporation

appeared and filed objections to the petitions filed by the

respondent-employees on the premise that the petitions are

not maintainable and the Labour Court has no jurisdiction to

grant the prayer of the employees. Since, the employees

claimed interest from their employer on the delayed payment

of service benefits, the petitioner-corporation disputed the

liability to pay the interest on the delayed payment.

4. The parties led evidence before the Labour Court

and the Labour Court has allowed the claim petitions and

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NC: 2023:KHC-D:14742

C/W. WP NOS. 104337, 104361, 104362, 104883, 105118, 105131, 105666, 105668, 105672 and 105766 of 2023

granted interest at the rate of 8% per annum for the delayed

period in making the payment of leave encashment.

5. Aggrieved by the aforementioned orders, the

petitioner-Corporation is before this Court.

6. Learned counsel for the petitioner-Corporation

raised the following contentions :

i) The petition under Section 33-C(2) of the I.D. Act,

1947 is in the nature of an execution petition.

Unless the claim is adjudicated or an award is

passed, the Labour Court does not get jurisdiction

to determine the claim.

ii) The claim relating to the entitlement of interest and

the rate of interest is not adjudicated prior to an

application under Section 33-C(2) of the I.D. Act,

1947, as such, the Labour Court does not get the

jurisdiction to entertain a petition.

iii) Under the provisions of the I.D. Act, 1947, there is

no liability imposed on the employer to pay the

interest in respect of delayed payment of leave

encashment.

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NC: 2023:KHC-D:14742

C/W. WP NOS. 104337, 104361, 104362, 104883, 105118, 105131, 105666, 105668, 105672 and 105766 of 2023

iv) The terms of employment between the employer

and employees does not contemplate the payment

of interest to the employees in case of delayed

payment of service benefits, as such, under

Section 33-C(2) of the I.D. Act, 1947, the Labour

Court has no jurisdiction to entertain a claim

petition without there being any adjudication as to

the entitlement of the employees.

7. Learned Counsel Sri. Ravi Hegde, appearing for

respondent-employees raised the following contentions :

i) The relation between the petitioner and respondent

as an employer and employee is not in dispute.

The date on which the respondent-employees are

entitled to receive the leave encashment benefit is

also fixed in terms of the circular dated

09.07.1998, wherein the employer has an

obligation to make payment of leave encashment

on the date of attaining the age of superannuation.

This being the position, there is nothing to be

adjudicated by the Industrial Tribunal as

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NC: 2023:KHC-D:14742

C/W. WP NOS. 104337, 104361, 104362, 104883, 105118, 105131, 105666, 105668, 105672 and 105766 of 2023

contemplated under the I.D. Act, 1947 and since no

adjudication is required relating to payment of

interest, the proceedings under Section 33-C(2) of

the I.D. Act, 1947 is maintainable.

ii) Assuming that the Labour Court has no jurisdiction

under the scheme of I.D. Act, 1947, to entertain

the matter, in case had it been referred to the

Industrial Tribunal under Section 10 by way of

reference, the same Court is required to adjudicate

the dispute and since the parties have been given

an opportunity to lead evidence, no prejudice is

caused to the petitioner-Corporation, as such, the

petition has to be dismissed.

8. Learned Counsel Sri. Ravi Hegde, appearing for

respondent-employees would also refer to the Judgments

referred to by the Labour Court in the impugned order.

9. Learned counsel Smt. Veena Hegde, appearing for

the petitioner-Corporation by way of reply would refer to the

judgment of the Hon'ble Apex Court in the case of Bombay

- 13 -

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C/W. WP NOS. 104337, 104361, 104362, 104883, 105118, 105131, 105666, 105668, 105672 and 105766 of 2023

Chemical Industries vs. Deputy Labour Commissioner and

Another, reported in (2022) 5 SCC 629 and the Judgment of

the co-ordinate Bench of this Court in the case of The

Management of NWKRTC vs. Shri Nijauni S/o. Shivarudrappa

Devanur, Writ Petition No. 103872/2021 (L-KSRTC), disposed

on 05.01.2023.

10. This Court has considered the contentions raised at

the bar.

11. The scope and ambit of Section 33-C(2) of the I.D.

Act, 1947 is no longer res integra. The various High Courts as

well as the Hon'ble Apex Court have laid down the law

interpreting Section 33-C(2) of the I.D. Act, 1947. It is well

settled proposition of law that the proceedings under Section

33-C(2) of the I.D. Act, 1947 is in the nature of execution

proceedings, where the Labour Court will have the jurisdiction

to enforce the orders pursuant to an adjudication or settlement.

The Labour Court has the jurisdiction to entertain a petition

under Section 33-C(2) of the I.D.Act, 1947.

12. The judgment of the Hon'ble Apex Court in the case

of Union of India and another vs. Kankuben, reported in

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C/W. WP NOS. 104337, 104361, 104362, 104883, 105118, 105131, 105666, 105668, 105672 and 105766 of 2023

(2006) 9 SCC 292 recognizes distinction between a pre-existing

right or benefit on one hand and the right or benefit which is

considered just and fair on the other hand. The Hon'ble Apex

Court has held that the claim based on the pre-existing right or

benefit can be adjudicated under Section 33-C(2) of the I.D.

Act, 1947 and the claim based on a fair and just claim cannot

be adjudicated under Section 33-C(2) of the I.D. Act, 1947.

13. In the light of the law declared by the Hon'ble Apex

Court, this Court has to consider whether the claim of the

petitioner-Corporation is based on any pre-existing right or

benefit.

14. The right to claim interest can be said to be a pre-

existing right or benefit, provided the terms and conditions of

contract of the employment between the employer and

employee is determined in the contract of employment, or if it

is determined in the Resolutions governing service conditions.

Admittedly, the terms and conditions of contract of employment

between the employer and employee if any, are silent on

payment of interest on delayed service benefits. The Rules and

Regulations governing the service conditions between the

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C/W. WP NOS. 104337, 104361, 104362, 104883, 105118, 105131, 105666, 105668, 105672 and 105766 of 2023

employer and employees also do not contemplate the payment

of interest in case of delay in paying the interest to the

employees.

15. This being the position, this Court is of the view

that the claim for interest cannot be termed as a claim based

on the pre-existing right or benefit within the meaning of

Section 33-C(2) of the I.D. Act, 1947.

16. It is also an admitted fact that there is no

adjudication by the competent authority or Industrial Tribunal

as to whether the employees are entitled to interest on account

of delayed payment. In addition to that, there is no

adjudication as to the rate of interest as well. The rate of

interest on account of delayed payment depends on various

factors. It is submitted by the learned counsel for the

petitioner-Corporation that payment was delayed on account of

Covid-19 pandemic related restrictions.

17. Under these circumstances, this Court is of the view

that the Labour Court could not have entertained the petition

under Section 33-C(2) of the I.D. Act, 1947.

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18. The Labour Court has referred to the judgment of

the Delhi High Court, wherein the Delhi High Court has taken a

view that the claim relating to leave encashment can be

entertained under Section 33-C(2) of the I.D. Act, 1947,

without there being any reference under Section 10.

19. This Court is of the view that the said decision is

not applicable to the case on hand. The reason is simple. The

Delhi High Court has taken a view in the aforementioned case,

given the fact that the claimants before the Labour Court made

a claim for payment of leave encashment. The fact that the

employees are entitled to leave encashment was not in dispute.

This being the position, the Delhi High Court has taken a view

that the petition under Section 33-C(2) of the I.D. Act, 1947 is

maintainable. However, in the present cases, it is to be noticed

that the claim relating to entitlement of interest is in dispute.

Hence, the Judgment referred to by the Labour Court in its

order is distinguishable and not applicable to the cases on

hand.

20. For the aforesaid reason, this Court proceeds to

pass the following :

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NC: 2023:KHC-D:14742

C/W. WP NOS. 104337, 104361, 104362, 104883, 105118, 105131, 105666, 105668, 105672 and 105766 of 2023

ORDER

(i) The writ petitions are allowed.

(ii) The orders passed by the Presiding Officer, Labour Court, Hubballi, in the following cases are set aside:

          Application             Date of order
           number
          105/2022                01.04.2023

          74/2022                 21.02.2023

          87/2022                 10.02.2023

          82/2022                 04.02.2023

          107/2022                01.04.2023

          97/2022                 01.04.2023

          89/2022                 01.03.2023

          101/2022                10.02.2023

          66/2022                 04.02.2023

          75/2022                 27.01.2023

          98/2022                 01.03.2023

(iii) However, this Court is of the view that the claim of respondent-employees relating to

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C/W. WP NOS. 104337, 104361, 104362, 104883, 105118, 105131, 105666, 105668, 105672 and 105766 of 2023

interest on account of delayed payment of leave encashment is not adjudicated by this Court.

(iv) The observations made in this order should not be construed as an observation denying the fair claim of the respondent-employees to claim interest on account of delayed payment. This Court has only decided the scope of the Labour Court under Section 33- C(2) of the I.D. Act, 1947.

(v) The respondent-employees are entitled to avail such remedy as available in law to claim interest on the delayed payment, if it is advised in law.

The time spent in prosecuting these petitions before the

Labour Court and before this Court is to be excluded in

computing the limitation, if any, if such claim in made under

other applicable jurisdiction.

Sd/-

JUDGE

CKK/ct-an

 
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