The Karnataka High Court has ruled that the North West Karnataka Road Transport Corporation (NWKRTC) must pay a lower interest rate of 6% on delayed leave encashment payments to its retired employees. This order follows delays of 10 to 25 months in paying the dues, with no prior interest paid on these amounts. Justice M. Nagaprasanna noted that public transport companies suffered huge losses due to the pandemic, employee strikes, and government free bus travel policies for women, which affected their finances severely. The pensioners had demanded 9-10% interest but the court balanced employee rights with the corporation’s financial reality. NWKRTC stated it was willing to pay 6%, close to the 5.58% bank interest rate during the relevant period. The court directed NWKRTC to clear the payments with interest within 12 weeks, warning that interest would rise to 9% if delayed beyond this period. The HC also took note that state transport bodies had to borrow around ₹2,000 crore to pay salaries amid these financial strains.