Authority: High Court of Karnataka at Bengaluru
Order Date: 16 July 2026
Case Overview
- Complainant: V. L. Jayaram (aged about 65) filed Civil Contempt Petition No.1287 of 2025 alleging contempt by HMT Ltd for not paying interest on leave encashment.
- Accused: Rajesh Kohli (Chairman & MD) and Jitendra Kumar Prasad (General Manager) of Hindustan Machine Tools Ltd.
- Parallel Writ Appeal No.378 of 2025 filed by HMT Ltd seeking to set aside the order dated 25 Jan 2025 directing payment of leave encashment and interest.
- The original writ court order required HMT to pay Rs.1,82,000 leave encashment and interest at 6% per annum from 17 Nov 2017.
Court Findings
- HMT admitted the liability of Rs.1,82,000 and paid this amount on 18 April 2026.
- The interest component remained unpaid.
- The court found no ground to interfere with the writ court’s order and dismissed the writ appeal.
Final Outcome
- The writ appeal is dismissed.
- The court extends six weeks from the date of the order for HMT to pay the accrued interest at 6% per annum on Rs.1,82,000, calculated from 17 Nov 2017 to 18 Apr 2026.
- The contempt petition is closed; it will be revived if the interest is not paid within the stipulated period.
Topics: Leave Encashment, Contempt of Court