Basawanthraya by Lrs and Ors. Vs the Spl Land Acquisition… — Land Acquisition | Karnataka HC (2025)

Basawanthraya by Lrs and Ors. Vs the Spl Land Acquisition… — Land Acquisition | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Appeal disposed of in terms of the Mediation Agreement: market value fixed at Rs.2,05,279/- per acre; all statutory benefits under the Land Acquisition Act except interest for the periods of delay in filing the appeals before the First Appellate Court and the High Court; claimants to give up statutory interest for two years (KNNL loses that exemption if the agreed amount is not paid within four months, subject to vacation of stay in W.P.(C) No.100913 of 2025); interest computed up to 23.04.2025 (date of State Government approval); KNNL to pay costs equivalent to the court fee paid by the appellants; full and final settlement; pending Execution Petitions to be withdrawn.

Issue for consideration

Whether the appellants/claimants were entitled to enhancement of the market value/compensation for the acquired land beyond Rs.79,200/- per acre (memorandum of appeal sought fixation at Rs.1,00,000/- per acre). +1 more

Court's answer

The terms of the Mediation Agreement were accepted by the parties; the Agreement was found not opposed to any provisions of law, was taken on record, and the present appeal stands disposed of in terms of the Mediation Agreement.

Ratio / Principle

Under the settlement embodied in the Mediation Agreement, the appellants/claimants are entitled to all statutory benefits under the Land Acquisition Act, except interest for the periods of delay in filing the Appeal before the First Appellate Court and the Appeal before the Hon'ble High Court.

Key takeaways

The submissions of the learned Additional Advocate General and counsel for respondent-KNNL — that necessary steps would be taken to vacate or modify the interim order in W.P.(C) No.100913/2025 concerning the KNNL Personal Deposit Account to the extent of the subject matter of this appeal, and that alternate arrangements would be made in the event of any impediment in implementing the Mediation Agreement — were taken on record as an undertaking to the Court.ratio¶100
In the event of any failure on the part of respondent-KNNL, the appellants/claimants would be at liberty to seek enforcement and execution of the order in accordance with law, and would then also be entitled to all statutory benefits including interest till realization.ratio¶101

Detailed headnote1 paragraphs

Land Acquisition — MSA under Section 54(2) of the Land Acquisition Act by legal representatives of the claimants (of Basavanthraya, Hanamanthraya and Amruthraya) — land bearing Sy.No.34/2, measuring 02 acres 34 guntas, Jidaga Village, Aland Taluk, acquired for construction of Amarja Project under preliminary notification dated 07.04.1988 issued under Section 4(1) of the Land Acquisition Act, 1894 — compensation determined at Rs.7,000/- per acre by the Special Land Acquisition Officer, enhanced to Rs.30,000/- per acre by the Reference Court (order dated 17.04.1999 in LAC No.108/1993) and further to Rs.79,200/- per acre by the III Additional District Judge, Kalaburagi (judgment and award dated 16.03.2012 in LACA No.50/2011), against which the present appeal sought fixation at Rs.1,00,000/- per acre — an earlier enhancement to Rs.1,78,429/- per acre by a Coordinate Bench (order dated 12.12.2018, taking note of MSA No.200060/2017) was set aside and the matter remanded by the Apex Court by orders dated 10.05.2022 and 12.03.2024 — on remand, the dispute was settled through mediation before Justice A.V. Chandrashekar (Retired Judge); the Mediation Agreement, approved by the State Government of Karnataka on 23.04.2025, fixed the market value at Rs.2,05,279/- per acre with all statutory benefits under the Land Acquisition Act, excluding interest for the periods of delay in filing the appeals, the claimants foregoing two years' statutory interest (exemption forfeitable if payment is not made within four months, subject to W.P.(C) No.100913/2025), interest computed up to 23.04.2025, and KNNL paying costs equivalent to the court fee — appeal disposed of in terms of the Mediation Agreement; undertaking recorded regarding the KNNL Personal Deposit Account (subject-matter of W.P.(C) No.100913/2025); upon default by KNNL, the claimants are at liberty to seek enforcement and execution with statutory benefits including interest till realization.

Procedural history

How this case reached the court

AI extract

Order under challenge
Judgment and award dated 16.03.2012 of the III Additional District Judge, Kalaburagi in LACA No.50 of 2011 enhancing compensation to Rs.79,200/- per acre — the decision challenged in this MSA.¶48
III ADDITIONAL DISTRICT JUDGE, KALABURAGI · 16.03.2012
Prior proceeding
Land bearing Sy.No.34/2, measuring 02 acres and 34 guntas, situated in Jidaga Village, Aland Taluk, acquired for construction of Amarja Project under preliminary notification dated 07.04.1988 issued under Section 4(1) of the Land Acquisition Act, 1894.¶53
Prior proceeding
Special Land Acquisition Officer determined compensation at Rs.7,000/- per acre.¶54
Prior proceeding
Reference Court enhanced compensation to Rs.30,000/- per acre vide order dated 17.04.1999 in LAC No.108/1993 (Additional Civil Judge (Sr. Dn.), Kalaburagi).¶54
Prior proceeding
Coordinate Bench of this Court, taking note of the earlier order in MSA No.200060/2017, allowed this appeal by order dated 12.12.2018 granting enhanced compensation of Rs.1,78,429/- per acre of dry land with all statutory benefits, clarifying no interest for the delayed period; that order was subsequently set aside by the Apex Court.¶59
Prior proceeding
Respondent-KNNL carried the matter in appeal to the Apex Court; by orders dated 10.05.2022 and 12.03.2024 passed in the said civil appeal along with connected matters, the Apex Court set aside the earlier order of this Court and remanded the matter for fresh consideration.¶60
Prior proceeding
After hearing on merits, the matter was placed before the Hon'ble Mr. Justice A.V. Chandrashekar, Former Judge, High Court of Karnataka, for mediation; the parties arrived at an amicable resolution by entering into a Mediation Agreement, duly approved by the State Government of Karnataka on 23.04.2025.¶65
Prior proceeding
As recited in the Mediation Agreement, the Hon'ble High Court had referred the remanded matters for mediation by order dated 27.09.2024.¶74