Facts
The petitioner claimed ownership of lands measuring 729.80 sq. metres in Sy. No. 117/1 and 2,421.49 sq. metres in Sy. No. 117/3 at Shettigere Village, acquired for the Metro Railway Project.
Source reference: p. 5–6After a preliminary notification under Section 28(1) of the Karnataka Industrial Areas Development Act, 1966, dated 29 August 2019, and a final notification dated 29 November 2019, the Special Land Acquisition Officer passed a general award on 5 October 2020, fixing compensation at ₹9,711.19 per square metre.
Source reference: p. 5–6The petitioner sought an award under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (“2013 Act”), relying on earlier awards and representations to the authorities.
Source reference: p. 6–7The matter had also been referred to the Civil Court under Sections 30 and 31 of the Land Acquisition Act, 1894.
Source reference: p. 6–7The petitioner challenged the general award in these petitions.
Source reference: p. 5Issues
Whether compensation for the lands acquired after the 2013 Act came into force had to be determined under that Act rather than the Land Acquisition Act, 1894.
Source reference: p. 9–10Whether the general awards should be quashed and fresh awards directed, subject to the outcome of the pending special leave petition before the Supreme Court.
Source reference: p. 9–11Law Applied
The acquisition proceeded under the Karnataka Industrial Areas Development Act, 1966, including its Section 28(1) notification process.
Source reference: p. 5–6The Court relied on the 2013 Act as the applicable compensation framework for lands acquired after that Act came into force, following M/s. Sri Balaji Corporate Services v. Union of India, as upheld by the Division Bench in W.A. No. 890/2022 and connected appeals.
Source reference: p. 7, 9–10It noted that the Division Bench judgment was under challenge in SLP (Civil) No. 3798/2024 and that the Supreme Court’s interim directions required compensation determined under the 2013 Act to be deposited before the Reference Court and withheld from disbursement pending further orders.
Source reference: p. 8–10The Court also referred to Sections 30 and 31 of the Land Acquisition Act, 1894, under which the matter had been referred to the Civil Court.
Source reference: p. 6Reasoning
The lands were notified for acquisition in 2019, after the 2013 Act came into force.
Source reference: p. 9–10Applying the rule stated in M/s. Sri Balaji Corporate Services and affirmed by the Division Bench, the Court held that the compensation had to be assessed under the 2013 Act.
Source reference: p. 9–10Because the Supreme Court challenge remained pending, the Court adopted a conditional course: quash the existing general awards and require fresh awards under the 2013 Act, while providing for revival of the original awards and withdrawal of excess compensation if the Supreme Court set aside the Division Bench judgment.
Source reference: p. 10–12Holding
The petitions were allowed, and the general awards dated 5 October 2020 were quashed, subject to the stated conditions.
The Special Land Acquisition Officer was directed to pass awards under the 2013 Act and deposit the compensation before the Reference Court within three months of receiving the order.
Source reference: p. 11If the Supreme Court allows the pending SLP and sets aside the Division Bench judgment, the original awards will revive and any excess deposit may be withdrawn; if the SLP is dismissed, the deposited compensation will stand confirmed, and the petitioner may withdraw it and seek a reference for enhancement.
Source reference: p. 11–12Acts & Sections Cited
1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
KARNATAKA INDUSTRIAL AREAS DEVELOPMENT ACT, 19661
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KALPANA PALEGARvsSTATE OF KARNATAKA
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