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Case title: Shripal and Anr v. Karnataka Neravari Ltd. and Anr.

Case no: Civil Appeal No. 4042 Of 2024 Civil Appeal No. 4043 Of 2024 and Civil Appeal No. 4041 Of 2024.

Dated on: 07th May 2024

Quorum: Justice B.R. Gavi and Justice Sandeep Mehta.

Facts of the case:

The appellants were land losers, had approached the court to seek enhancement of compensation pursuant to acquisition of their lands from the respondents for the purpose of construction of canals under the Hippargi Barrage project. There is no dispute that the lands of the appellants were irrigated lands. The land acquisition notification was issued on 12th April, 2007. The Special Land Acquisition Officer awarded a compensation of Rs.1,31,263/- per acre to the landowners. Upon reference by the Landowners, the Reference Court enhanced the compensation by fixing the market value at Rs. 3,00,000/- per acre. Aggrieved by the same, the beneficiaries Karnataka Neravari Nigam Ltd. filed M.F.A. before the High Court of Karnataka, Dharwad Bench. The Appellant-claimants filed cross-objections seeking enhancement of further compensation.

Issues:

Whether Appellants are entitled for higher compensation for their land acquired?

Legal provisions:

Section 4(1) of the Land Acquistion Act 1894- land in any locality is needed or likely needed for any public purpose or for company, a notification shall be put up in the Official Gazette.  

Contentions of the appellant:

In the High Court, the Appellants herein contended that in another M.F.A. the High Court had awarded compensation by fixing the market value at Rs. 3,69,000/- per acre along with statutory benefits for the irrigated lands. The said matter arose out of an acquisition notification of the years 2004-2005 and the order passed by the High Court has been confirmed by this Court with dismissal of Special Leave Petition(C) No. 8107 of 2016 filed by the beneficiary. The appellants drew the Court’s attention to an order dated 17th April 2021 passed by the learned Single Judge of the High Court of Karnataka wherein, for the very same project, the landowners had been awarded compensation at the rate of Rs.5,00,000/- per acre in respect of lands which are covered under the notifications issued between 2004- 2008. It was urged that the appellants are entitled to the same relief too.

Contentions of the respondent:

The High Court committed a glaring error in construing the affidavit filed by the respondents in MFA No.101083 of 2016. The affidavit filed was pertaining to acquisition of 2009, wherein the Reference Court had determined compensation at the rate of Rs.5,00,000/- per acre.

Courts analysis and judgement:

The respondents themselves have agreed to award at the market value for a rate of Rs. 3,69,000/- per acre along with statutory benefits for the lands acquired under the notification of the years 2004-2005. For the market value fixed in the years 2004-2005 at the rate of Rs.3,69,000/- per acre, 5% escalation per year has already been applied. For the lands which were acquired in the year 2009, the market value had been fixed by the Reference Court at Rs. 5,00,000/- per acre and above. However, the lands of the appellants were acquired in the year 2007. In this background, to meet the ends of justice, the market value of the lands acquired from the appellants is fixed at Rs. 4,50,000/- per acre by modifying the order dated 2nd February 2018 passed by the High Court. Accordingly, the appellant-claimants shall be entitled to compensation towards the acquired lands at the rate of Rs. 4,50,000/- per acre with all statutory benefits, interest and costs. The direction of the High Court to deny interest for the period of delay in filing the cross-objections is sustained. This order is passed considering the peculiar facts of the present case and shall not be treated as precedent. The appeals are allowed.

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Judgement reviewed by- Parvathy P.V.
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