THE EXECUTIVE ENGINEER vs THE STATE AND ORS
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC-K:11261
WP No. 203378 of 2019
CNR: KAHC030054442019
IN THE HIGH COURT OF KARNATAKA
KALABURAGI BENCH
TH
DATED THIS THE 12 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL
WRIT PETITION NO. 203378 OF 2019 (LA-RES)
BETWEEN:
THE EXECUTIVE ENGINEER
BNT, PROJECT
HEBBAL VILLAGE-585312
TQ: CHITTAPUR, DIST: KALABURAGI
…PETITIONER
(BY SRI. SANJEEVKUMAR C PATIL., ADVOCATE)
AND:
1. THE STATE THROUGH
SPECIAL LAND ACQUISITION OFFICER
M AND MIP KALABURAGI
2. THE DEPUTY COMMISSIONER
MINI VIDHANA SOUDHA
KALABURAGI-585101
Digitally signed
by SWETA
KULKARNI
Location: HIGH
COURT OF
KARNATAKA
3.
ANNEPPA S/O NINGAPPA
DEAD BY LRS
3I)
SHIVASHARANAPPA S/O LATE ANNEPPA
DEAD BY LRS
31a) SMT.SHANATBAI
W/O LATE SHIVASHARANAPPA
AGE: 73 YEARS, OCC: HOUSEHOLD
R/O 1/56, HERROR (K) VILLAGE
TQ: CHITTAPUR DIST: KALABURAGI
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WP No. 203378 of 2019
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3Ib) AMBARAO S/O KALSHETTY
S/O SHIVASHARANAPPA
AGE: 53 YEARS OCC: AGRI.,
R/O H.NO.5-601/67/61
SHIVA TEMPLE NEW EXTENSION MB NAGAR
KALABURAGI-585105
3Ic) KUMARI. NAGAMMA
D/O LATE SHIVASHARANAPPA
AGE: 44 YEARS, OCC: PRIVATE WORK
R/O HERUR (K) VILLAGE
TQ: CHITTAPUR DIST: KALABURAGI-585322
II SRINATH S/O LATE ANNEPPA
AGE: 63 YEARS, OCC: AGRI.,
R/O HERUR(K)
TQ: CHITTAPUR DIST: KALABURAGI.
…RESPONDENTS
(BY SRI.MALLIKARJUN SAHUKAR, AGA FOR R1 AND R2;
SRI.A.M.BIRADAR ADV., R3(I)(a) TO R3(I)(c) AND R3(II))
THIS WRIT PETITION FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA, PRAYING TO 1) ISSUE A
WRIT OF CERTIORARI QUASHING THE JUDGMENT AND AWARD
ST
DATED 31-05-2017 PASSED BY THE HONOURABLE I
ADDITIONAL DISTRICT JUDGE, KALABURAGI PASSED IN LACA
NO. 631 OF 2016 PRODUCED AT ANNEXURE-A; 2) TO ALLOW
THIS WRIT PETITION WITH COSTS AND GRANT SUCH OTHER
RELIEF/RELIEFS AS THIS HONOURABLE COURT MAY DEEM FIT
IN THE FACTS AND CIRCUMSTANCES OF THE CASE AS STATED
ABOVE WITH COSTS IN THE INTEREST OF JUSTICE AND
EQUITY.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING
‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL
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HC-KAR
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WP No. 203378 of 2019
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ORAL ORDER
This petition is filed by the Karnataka Neeravari
Nigam, the beneficiary of the acquisition in question,
challenging the judgment and award passed by the First
Appellate Court.
2. It is not in dispute between the parties that the
petitioner, being the beneficiary of the acquisition, was not
arrayed as a party before the First Appellate Court and the
award came to be passed.
3. It is submitted at the Bar that the matter was
referred to mediation under the aegis of Mr. Justice
A.V.Chandrashekar, Retired Judge of this Court. It is
submitted that, after the detailed mediation process, the
parties have agreed on terms and the Memorandum of
Mediation Agreement has been filed. The same is placed
on record.
4. The Memorandum of Mediation Agreement
reads as under:
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WP No. 203378 of 2019
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MEDIATION AGREEMENT
“Thorough discussions were held in the
presence of the Learned Mediator, Justice A.V
Chandrashekar (Retired), the Managing Director
of Karnataka Neeravari Nigam (Hereinafter
“KNNL”), the Learned Advocate General,
Karnataka, Additional Advocate General,
Kalaburagi, the Learned Advocates appearing
for the parties, and the authorized
representatives of KNNL.
The parties have agreed as follows:
The present writ petition is one of several
land acquisition matters pertaining to various
irrigation projects which are being undertaken
and managed by KNNL. By order
Dtd:07/07/2025, the Hon’ble High Court of
Karnataka, Kalaburagi Bench referred the
matters for mediation and connected cases. The
present compromise has been duly approved by
the State Government of Karnataka on
25/02/2026 relating to the land acquisition for
the Bennethora Project (BNT/BTP), considering
the various factors like the decisions of the
Hon’ble Supreme Court and also settlement in
earlier mediation MSA No.200061/2017 and
other connected matter and deliberations
between the parties. The parties have
voluntarily agreed to settle the above matter on
the following terms:
(a) The market value of the land acquired is
calculation and arrived at Rs. 42,582/- per acre
for dry land.
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(b) The Respondent/s (Claimant/s) is/are entitled
for all statutory benefits under Land Acquisition
Act-1894, except for the period of delay in filing
the Appeal before the First Appellate Court;
(c) No interest is payable to the Respondent/s
(Claimant/s) for the period of delay in filing the
Appeal before the First Appellate Cour;.
(d) The Respondent/s (Claimant/s) of land losers
agree that they will give up statutory interest
for a period of two and half (2 & ½) years.
(e) It is agreed to between the parties that the
calculation of interest is made up to the date of
14/03/2026.
(f) It is agreed to between the parties that, in case
the agreed amount is not paid within four
months from the signing of this agreement,
KNNL will not be entitled for exemption of
payment of interest for a period of two and half
(2 & ½) years as outlined in clause (d);
(g) The Respondent/s (Claimant/s) has/have
understood and agreed that the payment of
amounts quantified in the present agreement
would be made through the P.D account of
KNNL of Chief Accounts Officer, KNNL, Dharwad.
(Heard of Account "8443-00-106") as outlined in
G.O. No. AE 13 TAR 2023 dated 27.09.2024;
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(h) The Respondent/s (Claimant/s) agree that the
present agreement would be a full & final
settlement of their claims only to the respective
to the first appellate Court award and they
would not be entitled to any differential interest
except in accordance with the terms of this
agreement;
(i) Respondent/s (Claimant/s) has/have agreed to
give an undertaking in writing about the
genuineness of their claim and undertake to
furnish copy of the - Passbook and Aadhar Card
immediately upon signing of the agreement;
(j) The Respondent/s (Claimant/s) agree that the
present agreement would be a full and final
settlement of their claims to the first appellate
court and they and/or their legal heirs
undertake to not agitate any further claims in
this regard, in the future;
(k) The Respondent/s (Claimant/s) agree to
withdraw all pending Execution Petition(s) in
terms of this agreement;
(l) KNNL would not be bound to pay any further
compensation or claim to a third party, should
any dispute arise between the Respondent/s
(Claimant/s) and such person, in respect of
ownership and claim of the acquired land;
(m) KNNL has agreed to pay the costs to the
Respondent/s (Claimant/s) which is equivalent
to the Court fee paid by the Claimants in first
appellate court. Consequently, KNNL is entitled
for return of Court fee from Hon'ble Court, as
per law;
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(n) KNNL has undertaken that the payment of
agreed amount will be deposited directly to the
account of the Respondent/s (Claimant/s)
through the P.D. account of KNNL of the Chief
Accounts Officer KNNL, Dharwad. (Head of
Account "8443-00-106") as outlined in G.O. No.
AE 13 TAR 2023 Dtd:27-09-2024;
(o) The present settlement shall not be considered
either as a precedent or a policy decision or a
proposal binding in KNNL for cases, other than
the present matter referred to Mediation.
The parties to this agreement have entered
into this compromise voluntarily, on their own
volition, without any coercion of
misrepresentation and the contents of this
agreement have been explained to and
understood by the Respondent/s (Claimant/s) in
vernacular as well.”
5. The same is accepted.
6. It is to be noticed that the Deputy
Commissioner, Bidar has not signed the agreement.
However, it is further to be noticed that the dispute is
mainly between the beneficiary of the acquisition and the
land loser, and that the State has, in principle, consented
to the agreement. Hence, the signature of the Deputy
Commissioner, Bidar is dispensed with.
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WP No. 203378 of 2019
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7. It is also to be noticed that the Land Acquisition
Officer, who has been authorized, has affixed the
signature to the agreement. In view of the same, the
mediation report is accepted.
8. An apprehension has been expressed by the
learned counsel for the claimants regarding possible
deduction of tax at source (TDS) and issuance of Form
16A in respect of the compensation amounts. This issue is
no longer res integra. This Court, in its earlier order dated
20.08.2025 in W.P.No.102884/2025 has categorically held
that compensation awarded on account of compulsory
acquisition of land is not subject to deduction of tax at
source under the applicable provisions of the Income Tax
Act. Accordingly, it is directed that all payments made
pursuant to the Mediation Agreement, whether to joint
accounts or individual accounts, shall be effected without
any deduction of tax at source.
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9. The Mediation Agreement recorded herein shall
form part of this order and shall be treated as a lawful
settlement between the parties within the meaning of
Section 89 of the Code of Civil Procedure, 1908 read with
Order XXIII Rule 3 CPC. The said settlement shall operate
in substitution of any award, judgment, or decree passed
by the Reference Court and/or the Appellate Court. The
concerned Courts are directed to draw up a decree in
terms of the Mediation Agreement, as affirmed by this
order, within a period of 60 (sixty) days from the date of
receipt of a certified copy of this order.
disposed of
10. Accordingly, the writ petition is in
terms of the memorandum of settlement.
Sd/-
(VIJAYKUMAR A. PATIL)
JUDGE
ABK
List No.: 2 Sl No.: 0