THE STATE OF KARNATAKA BY vs B N SATHISH
- Court
- Karnataka High Court
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C/W MFA No. 8593 of 2023
MFA No. 8809 of 2023
AND 1 OTHER
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 7 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR
MISCELLANEOUS FIRST APPEAL NO.8582 OF 2023 (LAC)
C/W
MISCELLANEOUS FIRST APPEAL NO.8593 OF 2023 (LAC)
MISCELLANEOUS FIRST APPEAL NO.8809 OF 2023 (LAC)
MISCELLANEOUS FIRST APPEAL NO.8810 OF 2023 (LAC)
IN MFA No.8582/2023
BETWEEN:
THE STATE OF KARNATAKA BY
THE SPECIAL LAND ACQUISITION OFFICER
SAKALESHPURA DIVISION,
SAKALESHPURA
HASSAN DISTRICT
…APPELLANT
(BY SRI.SANJAY YADAV.B.,AGA)
AND:
B N SATHISH
S/O LATE NARASIMHA MURTHY,
SINCE DEAD BY HIS LR'S
SMT.K.VANAJA
AGED ABOUT 60 YEARS
W/O.LATE B.N.SATISH
SRI KAUSHIK B.S.
AGED ABOUT 31 YEARS
W/O.LATE B.N.SATISH
Digitally
signed by
VINUTHA M
Location:
HIGH
COURT OF
KARNATAKA
1.
[[[[[
2.
BOTH ARE R/AT: BEHIND CKS TEMPLE
BEHIND FORT, BELUR TOWN
HASSAN DISTRICT, HASSAN - 573 115.
…RESPONDENTS
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MFA No. 8809 of 2023
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(BY SRI.K.G.SADASHIVAIAH.,ADVOCATE FOR R-1 & R-3)
THIS MFA IS FILED U/S 54(1) OF LAND ACQUISITION
ACT, AGAINST THE JUDGMENT AND AWARD DATED 18.11.2017
PASSED IN LAC.NO. 7/2014 ON THE FILE OF THE SENIOR
CIVIL JUDGE AND M.A.C.T., BELUR, PARTLY ALLOWING THE
REFERENCE PETITION FILED UNDER SECTION 18(1) OF LAND
ACQUISITION ACT.
IN MFA NO. 8593/2023
BETWEEN:
01. THE STATE BY ASST.COMMISSIONER
SAKALESHPURA DIVISION & LAND ACQUISION
OFFICER
AT SAKALESHPURA
HASSAN DISTRICT
HASSAN
2.
THE ASSISTANT DIRECTOR
TOURISM DEPARTEMNT
HASSAN DISTRICT
HASSAN
...APPELLANTS
(BY SRI.SANJAY YADAV.B.,AGA)
AND:
S RAMU SINCE DEAD BY HIS LR'S
B.B.NAGARAJA RAO
S/O.BALAKRISHNACHAR
AGED ABOUT 79 YEARS
VYASHNAVI NILAYA
GUNIKERE STREET, KOTE, FORT
BELUR TOWN
HASSAN DISTRICT 572 101
1.
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2.
BALASUBRAMANYA
S/O B.B.NAGARAJA RAO
AGED ABOUT 39 YEARS
VYASHNAVI NILAYA
GUNIKERE STREET
KOTE FORT, BELUR TOWN
HASSAN DISTRICT 573 115
B.B.SHRINIVASAMURTHY
S/O LATE BALAKRISHNACHAR
SINCE DEAD BY HIS LR'S
H.R.SUSHEELA
W/O.RAGHAVENDRACHAR
D/O.LATE BALAKRISHNACHAR
AGED ABOUT 76 YEARS
R/AT KOTE, HOLENARASIPURA TOWN
HOLENARASIPURA TALUK
HASSAN DISTRICT
B.K.KESHAVAMURTHY
S/O.LATE BALAKRISHNACHAR
AGED ABOUT 83 YEARS
BEHIND SANDAL KOTI ROAD
K.R.PURAM, HASSAN TOWN
HASSAN TALUK & DISTRICT
3.
3(a)
3(b)
B.S.MANJULA
D/O B.S.SATHYANARAYANA SWAMY
AGED ABOUT 65 YEARS
R/AT NO.10TH MAIN, 13TH CROSS
VIDYARANYAPURAM
MYSURU SOUTH
MYSURU
3 (c)
B.S,SHASHIKALA
W/O B.S.SATHYANARAYANA SWAMY
AGED ABOUT 58 YEARS
R/AT NO.10TH MAIN, 13TH CROSS
VIDYARANYAPURAM
3(d)
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MYSURU SOUTH
MYSURU
4
KANACHANAMALA
W/O LATE RAMA RAO
SINCE DEAD BY HIS LR'S
CHANDRIKA
W/O.CHIDAMBAR NATH
AGED ABOUT 53 YEARS
R/AT HOUSING BOARD
MANDYA TOWN
MANDYA TALUK & DISTRICT
BHARATHI
W/O.V.V.RAGHAVA
AGED ABOUT 53 YEARS
R/AT HOUSING BOARD
MANDYA TOWN
MANDYA TALUK & DISTRICT
R.VIJAY
S/O.N.RAMARAO
AGED ABOUT 47 YEARS
R/AT HOUSING BOARD
MANDYA TOWN
MANDYA TALUK & DISTRICT
CHANDRALEKHA
W/O LATE NAGARAJU
AGED 75 YEARS
BELUR TOWN
BELUR TALUK 573 115
B L DEVIKA
W/O C V RAVISHANKAR
D/O LATE LAXMANA RAO
AGED 60 YEARS
C H NO 12/2, 3RD MAIN
JAYANAGARA
MYSURU 570 014
... RESPONDENTS
4(a)
4(b)
4(c)
5.
6.
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(BY SRI.K.M.SOMASHEKARA., ADVOCATE FOR R-1,2,5 & 6)
THIS MFA IS FILED U/S.54(1) LAND ACQUISITION ACT,
AGAINST THE ORDER DATED 8.12.2021 PASSED IN LAC
NO.06/2014 ON THE FILE OF THE SENIOR CIVIL JUDGE,
BELUR, PARTLY ALLOWING THE REFERENCE PETITION
U/S.18(1) OF THE LAND ACQUISITION ACT.
IN MFA NO. 8809/2023
BETWEEN:
THE SPECIAL LAND ACQUISITION OFFICER
SAKALESHPURA DIVISION,
SAKALESHPURA,
HASSAN DISTRICT,
HASSAN 572 101
... APPELLANT
(BY SRI.SANJAY YADAV.B.,AGA)
AND:
B N SUDEENDRA
S/O LATE NARAYANACHAR,
R/O C K S TEMPLE BEHIND FORT,
BELUR TOWN,
HASSAN DISTRICT,
HASSAN- 572 101
...RESPONDENT
(BY SRI.K.M.SOMASHEKARA.,ADVOCATE)
THIS MFA IS FILED U/S.54(1) LAND ACQUISITION ACT,
AGAINST THE ORDER DATED 20.12.2019 PASSED IN LAC
NO.08/2014 ON THE FILE OF THE SENIOR CIVIL JUDGE,
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BELUR, PARTLY ALLOWING THE REFERENCE PETITION
U/S.18(1) OF THE LAND ACQUISITION ACT.
IN MFA NO. 8810/2023
BETWEEN:
THE SPECIAL LAND ACQUISTION OFFICER
SAKALESHPURA DIVISON
SAKALESHPUR
HASSAN DISTRICT- 573134
...APPELLANT
(BY SRI.SANJAY YADAV.B.,AGA)
AND:
SMT.ANNAPOORNA
W/O LATE RAMANAYAKA
R/AT BELUR TOWN
BEHIND C.K.S TEMPLE
HASSAN DISTRICT- 573 115
... RESPONDENT
(BY SRI.SADASHIVAIAH K G.,ADVOCATE)
THIS MFA IS FILED U/S.54(1) LAND ACQUISITION ACT,
AGAINST THE JUDGMENT AND AWARD DATED 17.11.2017
PASSED IN LAC NO.9/2014 ON THE FILE OF THE SENIOR
CIVIL JUDGE, BELUR, PARTLY ALLOWING THE REFERENCE
PETITION U/S.18(1) OF THE LAND ACQUISITION ACT.
THESE APPEALS, ARE COMING ON FOR FINAL HEARING,
THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE PRADEEP SINGH YERUR
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ORAL JUDGMENT
MFA Nos.8582/2023, 8593/23, 8809/2023 and
8810/2023 are preferred by the State and the Special
Land Acquisition Officer praying to set aside the judgment
& award passed by the reference Court in LAC Nos.7/2014,
6/2014, 8/2014 and 9/2014 respectively and to restore
the award passed by the Special Land Acquisition Officer
or, in the alternative to suitably reduce the compensation
awarded by the reference Court. The respondents in these
appeals are the claimants/land losers.
2. As common question of law is involved and all
these appeals arise out of the very same acquisition
notification of the State dated 15.07.2010, with consent of
both parties, the matters are taken up together and
disposed of by this common judgment.
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(i) Brief facts of the case
3. A preliminary notification dated 15.07.2010 and
the final notification dated 30.09.2011 came to be issued
by the State of Karnataka for acquisition of residential
properties of the respondents/claimants, the particulars of
which are as under:
Case No. Survey number and extent
of land acquired
Compensation
awarded by
the SLAO
Compensation
awarded by
the reference
Court
MFA 8582/23 Tiled house and site
bearing Municipal Khata
No.4449/3287 measuring
1398 square feet situated
at Belur town, Hasan
district
Rs.177/- Rs.1,680/-
Rs.177/- Rs.1,680/-
MFA 8593/23 Property in TMC No.4447/
3285 and TMC No.4448/
3286 situated behind Sri
Channakeshava temple,
Belur town, Beluru
MFA 8809/23 Property in Khata
No.4458/3295 measuring
6175 square feet
Rs.177/- Rs.1,500/-
MFA 8810/23 House and site property
bearing Municipal Khata
No.4443/3282 measuring
506 square feet situated at
Belur town, Hassan
Rs.177/- Rs.1,680/-
3.1 The lands belonging to the respondents/
claimants were acquired for the purpose of 'Tourism
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Heritage Passport' and the appellant by its award dated
30.6.2013 awarded compensation at the rate of Rs.177/-
per square feet for the acquired land on the basis of three
previous years average of the consideration paid for more
than 27 sites sold around the acquired properties under
the sale deeds during the relevant period of time. The
respondents, being aggrieved by the said meager
compensation awarded sought for reference of the dispute
under Section 18 of the Land Acquisition Act, 1894, on the
ground that the amount awarded is inadequate, very
meager and disproportionate to the sale consideration paid
in respect of the lands sold under the sale deeds around
the acquired properties. On the basis of the reference so
made, the matter was taken up for consideration. Upon
appearance of the parties before the reference Court,
points were formulated for consideration and upon
considering the entire gamut of materials placed before
the Court by the claimants for enhancement of
compensation, the Reference Court allowed the reference
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petitions and enhanced the compensation amount to
1500/- per square feet in LAC No.8/2014 and Rs.1,680/-
per square feet in the other three matters i.e., LAC
Nos.7/2014, 6/2014 and 9/2014. The reference Court
further ordered that the claimants would be entitled for
additional market value of 12% per annum from the date
of publication of the 4(1) notification until date of award
and also would be entitled for solatium at 30% per annum
on the enhanced amount of compensation and interest at
9% for a period of 1 year from the date of taking
possession that is 25.02.2014 and thereafter at 15% per
annum on the enhanced amount till the date of realization
of the entire amount as provided under Section 28 of the
Land Acquisition Act in LAC Nos.7/2014, 6/2014 and
9/2014 and interest at 15% per annum from the date of
preliminary notification in LAC No.8/2014.
3.2 Being aggrieved by the orders of enhancement
passed by the Reference Court, the appellant/State filed
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MFA No. 8809 of 2023
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these appeals praying to set aside the impugned
judgments and awards passed by the reference Court.
(ii) Contentions of learned AGA for the State
4. It is the vehement contention of learned AGA - Sri.
Sanjay Yadav appearing on behalf of the State that the
impugned judgments passed by the reference Court are
illegal and perverse as the compensation awarded by the
reference Court while considering the reference petitions
under Section 18 of the Land Acquisition Act, is very high.
4.1 It is also contended that the compensation
awarded has been received by the respondents/claimants
under protest and that the respondents/claimants filed
objections to the award and sought for reference of the
claim to the Civil Court after a lapse of 90 days i.e.,
beyond the period as stipulated under Section 18 of the
Land Acquisition Act and therefore the references petitions
itself were not maintainable.
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4.2 The learned AGA further contends that the
Reference Court has relied upon the award passed in LAC
No. 5 of 14, which would not have been the basis for
enhancement of compensation considering the fact that
the property acquired is a house property and not a
commercial property.
4.3 Learned AGA further contends that the Reference
Court has gravely erred in placing reliance on Ex.P4 in
LAC 9 of 2014 to enhance the compensation despite there
being no production of any sale deed whereby the
purchaser has bought the house property in and around
the acquired property for the value as stated in LAC 9 of
2014. Hence, learned counsel contends that in the
absence of any such material placed before the reference
Court, the reference court ought not to have taken the
award passed in LAC No.9/2014 as the basis to enhance
the compensation.
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4.4 Learned AGA also contends that another
important aspect of the matter is that the beneficiary was
not made a party to the proceedings before the reference
Court in LAC Nos.7/2014, 8/2014 and 9/2014. Therefore,
the very maintainability of the said reference petitions is a
question in view of the beneficiary having not been made
a party. Therefore, the said reference petitions are bad for
non-joinder of proper and necessary parties.
4.5 The learned AGA further contends that the
reference Court while dealing with the reference petition
for enhancement of compensation has to take into
consideration the market value at the relevant point of
time and carefully analyze as to whether any cogent
material is placed on record with regard to the market
value by way of production of any sale deed as similar to
that of the acquired property to come to a conclusion with
regard to the enhancement so arrived at, whereas in the
present case on hand, the sale deed so produced pertains
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to a commercial property, whereas the acquired property
is a residential property. Under the circumstances, he
contends that there is a grave error committed by the
Reference Court in enhancing the compensation, which
requires to be set aside by allowing the appeals.
4.6 In support of his contentions, learned AGA relied
upon the order passed by the Coordinate Bench of this
Court in the case of the Karnataka Industrial Areas
1
Development Board -vs- Sri Byregowda and others .
He also places reliance on the Circular issued by the State
Government dated 7.3.2024, whereby it has stated that
the beneficiary to be made a party in the proceedings of
this nature as it is a mandatory requirement.
(iii) Contentions of learned counsel for
respondents/claimants
5. Per contra, learned counsel for respondents/
claimants vehemently contends that there is no illegality
1
W.P. No.55485/2017 (LA-KIADB) c/w W.P. No.11178/2016 dated
20.11.2018
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or perversity committed by the Reference Court in
enhancing the compensation, as the compensation
enhanced is on the basis of the oral and documentary
evidence placed on record before the reference Court.
Learned counsel contends that the evidence of the
claimant depicts that the market value of the properties
near the acquired property is somewhere around
Rs.2,000/- per square feet at the relevant point of time.
The Reference Court has relied upon Ex. P4 which is a
general award, which determined the market value of the
acquired site on the basis of the sale deeds said to have
been executed in respect of some of the neighbouring
properties near the acquired property. Based on these
documents, the Reference Court has enhanced the
compensation to Rs.1680/- per square feet, which does
not call for interference.
5.1 On these grounds, learned counsel seeks to
dismiss the appeals filed by the State.
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5.2 It is also vehemently contended by the learned
counsel for the claimants that the compensation amount
though deposited has not been ordered to be released and
the amount is yet to be received by the claimants.
Despite the properties having been acquired by the State
in the year 2010 and the claimants having divested of the
property, they are unable to enjoy the fruits of the
compensation even after a period of nearly 16 years.
Hence the learned counsel for the respondents/claimants
seeks leave of this Court to permit them to withdraw the
amount deposited by the appellant/State before the
reference court.
(iv) Points for consideration
6. Having given my thoughtful consideration to the
arguments advanced by learned AGA as well as learned
counsel for respondents/claimants, the points that would
arise for consideration in these appeals are:
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1) Whether the impugned judgment & award
passed by the reference Court in these appeals
calls for interference ?
2) If so, what order?
(v) Consideration
7. It is not in dispute that the State acquired the
properties of the claimants for the purpose of 'Tourism
Heritage Passport' by virtue of a preliminary notification
15.7.2010 and final notification dated 30.9.2011 and the
appellant awarded compensation at the rate of 177/- per
square feet for the acquired property. The
respondents/claimants being aggrieved by the meager
compensation awarded sought for reference of the dispute
under Section 18(1) the Act for determination of correct
market value and on reference made by the appellant, the
reference Court adjudicated the claim made by the
respondents and by the impugned judgments enhanced
the compensation to Rs.1,500/- per square feet in LAC
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No.8/2014 and Rs.1,680/- per square feet in the other
three matters i.e., LAC Nos.7/2014, 6/2014 and 9/2014.
8. The State being aggrieved by the judgments and
awards passed by the reference Court preferred these
appeals on several grounds. The primary ground taken by
the learned AGA is that the beneficiary has not been made
a party before the Reference Court in three of these
matters. He contends that the beneficiary is none other
than 'Tourism Heritage Passport', which is not made party
even before this Court in three of these appeals. Learned
AGA vehemently contended that the enhancement of
compensation is not proper in accordance with law and
also on the cogent basis of the value of the nearby
acquired land during the relevant point of time.
Apparently, it is seen that the State has contested the
matter before the reference Court, but did not raise the
ground of beneficiary having not been made a party. Be
that as it may, it is necessary in the interest of justice that
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beneficiary is made a party as the beneficiary has to pay
the compensation awarded.
9. At this stage, it is relevant to state that the
Coordinate Bench of this Court in the case of the
Karnataka Industrial Areas Development Board -vs-
Sri Byregowda and others (supra), has observed at
paragraph-9 as under:
"9. There is a lot of force in the contention of
Shri S.S. Naganand, learned Senior Advocate that
even in the absence of a provision like Section
20(2)(c) above, the beneficiary is required to be
heard in the reference matter before enhancing the
compensation amount. It is the beneficiary of
acquisition upon whom the burden to pay the
compensation and enhanced compensation falls
under the scheme of the law relating to acquisition of
land and therefore, consistent with the requirement
of the principles of natural justice, such beneficiary
has to be afforded an opportunity of hearing. An
argument to the contrary would offend the principle
of audi, alterem, partem, which even the God is
stated to have followed before punishing Adam and
Eve for eating the prohibited fruit. "
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10. It is also relevant to state that the Circular issued
by the State Government dated 7.3.2024 depicts that the
beneficiary to be made a party in the proceedings of this
nature as it is a mandatory requirement.
11. Apparently, in the present case on hand, the
beneficiary is not made party. Therefore, this Court is of
the opinion relying upon the judgment of the Coordinate
Bench of this Court stated supra and the Circular issued by
the State Government that the beneficiary is to be made
a party in the proceedings of this nature as it is a
mandatory requirement. Therefore, this Court deems it
appropriate to remand the matters to the reference Court
with a direction for the beneficiary to be made a party in
the reference Court and thereafter, the reference Court
shall provide an opportunity to the beneficiary to putforth
its say and thereafter pass suitable orders on the merits of
the matter. It is open to the appellant/State and
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respondents/claimants to place relevant material in
support of their contentions.
12. Accordingly, I pass the following:
O R D E R
1) These appeals are allowed .
2) The impugned judgments & awards passed by the
reference Court in LAC Nos.7/2014, 6/2014,
8/2014 and 9/2014 dated 18.11.2017, 8.12.2021,
20.12.2019 and 17.11.2017, are hereby set aside
and the matters are remitted back to the
reference Court for reconsideration afresh in
accordance with law.
3) The beneficiary shall be made party before the
reference Court in all the matters except in LAC
No.6/2014, where beneficiary is already on record.
4) The reference Court shall provide suitable
opportunity to the beneficiary to putforth their say
and pass orders afresh in accordance with law.
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5) It is open to the appellant/State and
respondents/claimants to place relevant material
in support of their contentions.
6) The parties shall appear before the reference
Court on 4th November 2026 without awaiting
further notice either from this Court or the
reference Court.
7) In view of the fact that acquisition is of the year
2010 and the State did not bother to make the
preliminary objection with regard to the
beneficiary not being a party and even in three of
these appeals beneficiary having not been made a
party, substantial amount of time is already
consumed and therefore, this Court deems it
appropriate to direct the reference Court to decide
three
the reference petitions within a period of
months from the date of receipt of copy of this
judgment.
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8) In the meanwhile, the respondents/claimants in
all these matters are permitted to withdraw 50%
of the compensation amount already deposited
before the reference Court. The reference Court
is directed to disburse the same in favour of the
respective claimants upon furnishing the relevant
bank details.
9) All contentions of the parties are kept open.
Sd/-
(PRADEEP SINGH YERUR)
JUDGE
GSS
List No.: 1 Sl No.: 52