Bhabha Atomic Research Centre Vs Sri. Y N Hanumanthegowda — Land Acquisition | Karnataka HC (2025)

Bhabha Atomic Research Centre Vs Sri. Y N Hanumanthegowda — Land Acquisition | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Appeal succeeded in part: the direction granting interest from the date of the preliminary notification was set aside, and interest under Section 28 of the Act was ordered to run from the date of taking possession (23.08.2001); the Reference Court's enhancement of market value was left undisturbed; the respondent/authority was directed to disburse the amount within eight weeks and pending applications stood disposed of.

Issue for consideration

Whether the Reference Court committed grave error in determining the market value of the acquired land at Rs.11,40,000/- per acre without considering the evidence on record and the fact that the land was not situated in a developed area. +1 more

Ratio / Principle

In the above factual situation, this Court opined that the appeal is liable to succeed in-part.

Key takeaways

The direction for grant of interest from the date of the preliminary notification shall stand set aside.ratio¶¶43
The interest as provided under Section 28 of the Act shall be granted from the date of taking possession i.e., from 23.08.2001.ratio¶¶43
In view of the disposal of the appeal, the respondent/authority is directed to disburse the amount as per this judgment within a period of eight weeks; all pending applications, if any, stand disposed of.ratio

Detailed headnote1 paragraphs

Land Acquisition Act, 1894 – M.F.A. No.7830/2019 (HC-Karnataka, 17.10.2025; Anu Sivaraman and Vijaykumar A. Patil JJ.; per Vijaykumar A. Patil J.) – S.54(1) appeal by acquiring body (Bhabha Atomic Research Centre, Rare Materials Project) against Reference Court award in LAC No.435/2004 (Principal Senior Civil Judge and CJM, Mysore, dt. 31.03.2010) enhancing market value from Rs.1,62,000/- to Rs.11,40,000/- per acre for lands in Sy.Nos.294 and 298/2B, Ilawala Village, Mysore Taluk (preliminary notification u/s 4(1) dt. 03.12.1998; final notification u/s 6(1) dt. 08.06.1999; possession dt. 23.08.2001). Held: appeal succeeds in-part – direction granting interest from date of preliminary notification set aside; interest under Section 28 of the Act payable from date of taking possession (23.08.2001); respondent/authority to disburse within eight weeks; pending applications disposed. Court noted order dt. 03.03.2025 in MFA.No.7772/2019 and connected appeal.

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17^TH DAY OF OCTOBER, 2025

PRESENT

THE HON'BLE MRS. JUSTICE ANU SIVARAMAN

AND

THE HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL MISCELLANEOUS FIRST APPEAL NO.7830/2019

BETWEEN:

BHABHA ATOMIC RESEARCH CENTRE RARE MATERIALS PROJECT RATNAHALLI, YELAWAL HOBLI MYSURU TALUK.

…APPELLANT

Digitally signed by RUPA V Location: High Court Of Karnataka

(BY SRI. UNNIKRISHNAN M, ADV.,)

AND:

SRI. Y.N. HANUMANTHEGOWDA D/O LATE NANJUNDEGOWDA ILAWALA VILLAGE AND POST ILAWALA HOBLI, MYSORE TALUK.

THE ASSISTANT COMMISSIONER MYSORE SUB DIVISION MYSORE.

…RESPONDENTS

(BY SRI. S. RUPESH KUMAR, ADV., FOR R1 SMT. PRATHIBHA R.K. AGA FOR R2)

THIS MFA IS FILED U/S.54(1) OF THE LAND ACQUISITION ACT, 1894, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD OF THE HON'BLE PRINCIPAL SENIOR CIVIL JUDGE, MYSORE IN LAC NO.435/2004, DATED 31.03.2010 BY ALLOWING THIS APPEAL. CALL FOR RECORDS IN LAC NO.435/2004, DATED 31.03.2010 OF THE HON'BLE PRINCIPAL SENIOR CIVIL JUDGE, MYSORE & ETC.

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

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CORAM: HON'BLE MRS. JUSTICE ANU SIVARAMAN and HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL

ORAL JUDGMENT

(PER: HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL)

This appeal is filed by the appellant challenging the judgment dated 31.03.2010 passed by the Principal Senior Civil Judge and CJM, Mysore (Reference Court) in LAC No.435/2004.

The brief facts leading to the filing of this appeal are that the State Government has acquired the claimant's land measuring 1-06 acres and 3-14 acres in Sy.Nos.294 and 298/2B respectively, situated at Ilawala Village, Mysore Taluk, Mysore District, for the purpose of construction of residential quarters of the Baba Atomic Research Centre, Government of India. A Preliminary notification under Section 4(1) of the Land Acquisition Act, 1894 (for short 'the Act') was issued on 03.12.1998 and final notification under Section 6(1) of the Act was issued on 08.06.1999. The Land Acquisition Officer passed award

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and fixed the market value of the land in question at Rs.1,62,000/- per acre and the possession of lands were handed over to the appellant on 23.08.2001. Upon reference, the Reference Court re-determined the market value at Rs.11,40,000/- per acre along with all statutory benefits. Aggrieved by the same, the appellant has filed this appeal.

Learned counsel for the appellant submits that the Reference Court has committed grave error in determining the market value of the land in question without considering the evidence on record and the land in question was not situated in a developed area and the reference Court has seriously erred in ignoring this fact while fixing the market value.

It is submitted that the Reference Court after

considering the claim of claimant, allowed the petition inpart and fixed the market value of the land in question at Rs.11,40,000/- per acre along with additional market value at 12% from the date of preliminary notification till

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the date of award or possession whichever is earlier, 30% solatium on the market value and interest at 9% per annum on the enhanced compensation amount from the date of preliminary notification for a period of one year and at the rate of 15% per annum for the subsequent period until payment is made or deposited in the Court.

It is further submitted that grant of interest from the date of Preliminary Notification is erroneous,

since possession was taken only on 23.08.2001 and interest could have been granted only from the date on which, possession was taken. It is also submitted that by awarding interest from the date of preliminary notification has saddled the appellant with huge pecuniary liability. Hence, he seeks to allow the appeal by reducing the market value of the land and award interest from the date of possession of the land.

In the above factual situation, we are of the opinion that the appeal is liable to succeed in-part . We

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have also taken note of the order dated 03.03.2025 passed in MFA.No.7772/2019 and connected appeal. The direction for grant of interest from the date of the preliminary notification shall stand set aside. The interest as provided under Section 28 of the Act shall be granted from the date of taking possession i.e., from 23.08.2001.

Accordingly, the Miscellaneous First Appeals stands disposed of as above.

In view of the disposal of the appeal, the respondent/authority is directed to disburse the amount as

per this judgment within a period of eight weeks.

All pending applications, if any, stand disposed of.

Sd/(ANU SIVARAMAN) JUDGE

Sd/(VIJAYKUMAR A. PATIL) JUDGE

ABK/BSR List No.: 1 Sl No.: 13