Karnataka HC Removes 25% Award-Deposit Condition For Project Beneficiary, Upholds Fresh Compensation Hearing

Krishna Bhagya Jala Nigama Limited, the beneficiary of land acquired by the State, had not been impleaded before the Reference Court, which subsequently made awards concerning the acquired land.

The Nigama challenged those awards by writ petition, asserting that the compensation was excessive and that it should have been heard

The learned Single Judge set aside the awards and remanded the matter for fresh consideration, but imposed conditions, including a requirement to deposit 25% of the award amount

The Nigama appealed against conditions (iv) to (ix), relying on a coordinate Bench’s decision setting aside similar conditions in Writ Appeal No. 100476 of 2026.

The parties had no objection to disposal on the same terms.

The appeal was brought under Section 4 of the Karnataka High Court Act, 1961.

The Court applied the approach taken by a coordinate Bench in Writ Appeal No. 100476 of 2026: where an award is set aside and the matter remanded for fresh consideration, the Reference Court is to reconsider the matter in accordance with law, without the impugned conditions imposed by the Single Judge.

The Court found that the present appeal involved facts and conditions similar to those considered in Writ Appeal No. 100476 of 2026.

The parties did not object to following that decision.

Accordingly, the Court preserved the Single Judge’s decision to set aside the Reference Court’s award and remit the matter, while removing conditions (iv) to (ix), leaving the Reference Court to decide the proceedings afresh in accordance with law.

The parties were directed to appear before the Reference Court on 26 November 2026, without awaiting further notice, and to cooperate in expeditious disposal.

Pending applications, if any, were also disposed of.