Karnataka HC Removes 25% Deposit Condition, Leaves Upper Krishna Land Compensation Claims For Fresh Hearing

The appellant, Krishna Bhagya Jala Nigama Ltd., was the beneficiary of land acquired from the private respondents but had not been impleaded before the Reference Court, which passed an award.

The appellant challenged that award in W.P. No. 109857/2025.

On 16 June 2026, the Single Judge set aside the award and remitted the matter, imposing conditions in the operative order, including directions concerning evidence, payment of enhanced compensation, and a deposit of 25% of the award amount.

The appellant appealed, challenging those conditions.

The parties submitted that the same issue had been resolved in earlier writ appeals, where the conditions were set aside and the Reference Court was left to decide the reference in accordance with law.

The Court relied on the coordinate Bench’s decision in Writ Appeal No. 100475 of 2026, which held that where the writ petition succeeds on the ground that the beneficiary was absent from the Reference Court proceedings, the Reference Court should be given a free hand to decide the remitted matter in accordance with law; conditions restricting its discretion as to how the reference is to be decided are inappropriate.

The Court also followed the disposition in Writ Appeal No. 100590 of 2026 and a connected matter.

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

The appeal concerned the conditions attached to remand, not the setting aside of the Reference Court’s award or the remand itself.

In view of the coordinate Bench’s ruling that the Reference Court must determine the reference afresh without constraints on its discretion, the Court saw no reason to depart from the approach adopted in the earlier appeals.

It therefore disposed of the appeal on the same terms, while directing notice to parties who had not been served in the appeal.

Accordingly, the Single Judge’s order setting aside the Reference Court’s award and remitting the matter remains in effect, while the remand conditions corresponding to conditions (iv) to (ix) are set aside; the Reference Court is to reconsider the matter in accordance with law.

The parties were directed to appear before the Reference Court on 26 November 2026, which was directed to issue notice to parties not served in the appeal and thereafter proceed in accordance with law.

Pending applications were disposed of.