Karnataka HC Sets Aside Enhanced Land Compensation Award, Reopens Reference To Hear Project Beneficiary Left Out of Proceedings

The petitioner, a Karnataka Government undertaking and beneficiary of the land acquisition, challenged the judgment and award dated 11 April 2022 in LAC No. 713/2019.

It contended that it had not been impleaded before the Reference Court, although it would be liable for the enhanced compensation.

Relying on a Coordinate Bench decision in W.P. Nos. 102697/2025 and 103117/2025, the petitioner sought to have the award set aside and the reference proceedings reopened with the petitioner joined as a party.

The landowners’ counsel also sought clarification concerning the amount permitted to be withdrawn from compensation deposited in the proceedings.

The petition was brought under Articles 226 and 227 of the Constitution of India.

The Court applied the approach adopted by the Coordinate Bench in W.P. Nos. 102697/2025 and 103117/2025, namely, setting aside the impugned awards, restoring the reference proceedings, and permitting the beneficiary to be impleaded so that the matter could be reconsidered with the relevant parties before the Reference Court.

The Court also directed that any withdrawal of compensation would remain subject to the final outcome of the reference proceedings.

The Court accepted the petitioner’s submission that the dispute was identical to that addressed by the Coordinate Bench.

Because the petitioner was the beneficiary and asserted that it would be answerable for the enhanced compensation, the Court followed the Coordinate Bench’s procedure and restored the reference proceedings so the petitioner could be joined and the matter reconsidered in accordance with law.

On the withdrawal issue, it clarified that any amount withdrawn by the landowners would be subject to the Reference Court’s final decision.

It set aside the judgment and award dated 11 April 2022 and restored the reference proceedings.

The petitioner was directed to appear before the Reference Court on 30 October 2026 at 11:00 a.m.; it may then be impleaded, after which the other parties are to be notified.

The parties’ submissions on the merits remain open, and the Reference Court is to conclude the proceedings within six months from the appearance of all parties.

Any withdrawal of compensation is subject to the final outcome of the reference proceedings.