Krishna Bhagya Jala Nigam Gets 25% Deposit Condition Lifted as Karnataka HC Sends Landowners’ Compensation Claims Back for Fresh Decision

Lands belonging to the private respondents were acquired for the appellant, Krishna Bhagya Jala Nigama Ltd., the beneficiary of the acquisition.

The appellant was not made a party before the Reference Court, which passed an award.

In a writ petition filed by the appellant, the Single Judge set aside the award and remitted the matter to the Reference Court, but imposed conditions concerning the beneficiary’s participation, compensation for similarly placed lands, and a 25% deposit of the compensation awarded.

The appellant appealed against those conditions.

The parties submitted that similar conditions had been set aside in connected writ appeals and sought the same disposition here.

Section 4 of the Karnataka High Court Act, 1961, provided the basis for the writ appeal.

The Court relied on the coordinate Bench’s decision in W.A. No. 100475 of 2026, which held that where the writ petition succeeded on the ground that the beneficiary had not been impleaded, the Reference Court should be left to decide the remitted matter in accordance with law; directions that restrict its discretion in doing so may be set aside.

The Court also followed the order in W.A. No. 100590 of 2026 and a connected matter, which applied that approach.

The Single Judge’s order setting aside the Reference Court’s award and remitting the matter was not challenged as such; the appeal concerned the additional conditions governing the remand.

Following the coordinate Bench’s view that the Reference Court must decide the reference afresh in accordance with law, the Court found no reason to impose the conditions previously removed in the connected appeals.

It therefore adopted the same disposition while directing the Reference Court to notify parties who had not been served in this appeal.

The Reference Court is to reconsider the reference in accordance with law, with the parties to appear before it on 26 November 2026; it must issue notice to parties not served in this appeal before proceeding.

Pending applications were also disposed of.