Karnataka High Court
The Executive Engineer vs Arjun Bandu Yadav on 29 April, 2025
Author: S G Pandit
Bench: S G Pandit
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MFA No. 23656 of 2012
C/W MFA No. 23657 of 2012
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 29TH DAY OF APRIL, 2025
PRESENT
THE HON'BLE MR. JUSTICE S G PANDIT
AND
THE HON'BLE MR. JUSTICE C.M. POONACHA
MISCELLANEOUS FIRST APPEAL NO.23656 OF 2012 (LAC)
C/W
MISCELLANEOUS FIRST APPEAL NO.23657 OF 2012
IN M.F.A. NO.23656 OF 2012
BETWEEN
1. THE EXECUTIVE ENGINEER,
KARNATAKA HOUSING BOARD,
HUBLI DIVISION, HUBLI.
2. KARNATAKA HOUSING BOARD,
KAUVERY BHAVAN,
BENGALURU BY ITS
HOUSING COMMISSIONER,
BENGALURU, REPRESENTED BY AEE,
KHB, BELAGAVI.
Digitally signed ...APPELLANTS
by V N (BY SMT. SHARMILA PATIL, ADVOCATE)
BADIGER
Location: HIGH
COURT OF AND
KARNATAKA
ARJUN BANDU YADAV OF SANKESHWAR,
TALUKA HUKKERI, DIST. BELAGAVI,
(SINCE DECEASED BY LRS)
1. BHIMSEN ARJUN YADAV,
AGE. 60 YEARS, OCC: AGRICULTURE,
R/O. SANKESHWAR, TQ. HUKKERI,
DIST. BELAGAVI.
2. APPASAHEB ARJUN YADAV,
AGE: 55 YEARS, OCC: AGRICULTURE,
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R/O: SANKESHWAR, TQ: HUKKERI,
DIST: BELAGAVI.
3. SURESH ARJUN YADAV,
AGE: 52 YEARS, OCC: AGRICULTURE,
R/O: SANKESHWAR, TQ: HUKKERI,
DIST: BELAGAVI.
4. RAMESH ARJUN YADAV,
AGE: 50 YEARS, OCC: AGRICULTURE,
R/O: SANKESHWAR, TQ: HUKKERI,
DIST: BELAGAVI.
5. NARAYAN SHANKAR YADAV,
AGE: 42 YEARS, OCC: AGRICULTURE,
R/O: SANKESHWAR, TQ: HUKKERI,
DIST: BELAGAVI.
SINCE DECEASED BY LR'S
5(A) BANDU S/O. NARAYAN YADAV,
AGE: 45 YEARS, OCC: AGRICULTURE,
R/O: SANKESHWAR, TQ. HUKKERI,
DIST: BELAGAVI.
6. SADASHIV SHANKAR YADAV,
AGE: 40 YEARS, OCC: AGRICULTURE,
R/O: SANKESHWAR, TQ: HUKKERI,
DIST: BELAGAVI.
7. SMT. SUSHILA W/O. NILAPANKAR,
AGE: 60 YEARS, OCC: HOUSEHOLD,
R/O: GADINGLAJ, MAHARASHTRA STATE.
SINCE DECEASED BY LR'S
7(A) RAMACHANDRA S/O. SHANKAR NILPANKAR,
AGE: 55 YEARS, OCC: SERVICE,
R/O: GADINGLAJ, DIST. KOLHAPUR.
7(B) ASHOK S/O. SHANKAR NILPANKAR,
AGE: 50 YEARS, OCC: SERVICE,
R/O: GADINGLAJ, DIST. KOLHAPUR.
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7(C) DR. SATISH S/O. SHANKAR NILPANKAR,
AGE: 45 YEARS, OCC: DOCTOR,
R/O: GADHINGLAJ, DIST. KOLHAPUR.
8. SMT. SHAKUNTALA NANASAHEB JADHAV,
AGE: 54 YEARS, OCC: HOUSEHOLD,
R/O: GADINGLAJ, DIST. KOLHAPUR,
(REPRESENTED BY GPA HOLDER
JAIPRAKASH NARAYAN NALAWADE OF
SANKESHWAR, TQ. HUKKERI, DIST. BELAGAVI.
9. THE ASSISTANT COMMISSIONER AND LAND
ACQUISITION OFFICER, BELAGAVI.
...RESPONDENTS
(BY SRI. ANIL KALE, ADVOCATE FOR R1-R4, R5(A), R6, R7(A-C) AND
R8 (BY THEIR GPA HOLDER);
SRI. M.M. KHANNUR, ADDITIONAL GOVERNMENT ADVOCATE FOR
R9)
THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54 (1) OF LAND ACQUISITION ACT, 1894, PRAYING TO
ALLOW THE APPEAL AND SET SIDE THE JUDGMENT AND AWARD
PASSED BY THE LEARNED SENIOR CIVIL JUDGE HUKKERI, IN LAC
NO.54/2003 DATED 03.02.2012 AND CONFIRM THE AWARD PASSED
BY THE S.L.A.O. AND ETC.,.
IN M.F.A. NO.23657 OF 2012:
BETWEEN
1. THE EXECUTIVE ENGINEER,
KARNATAKA HOUSING BOARD,
HUBLI DIVISION, HUBLI.
2. KARNATAKA HOUSING BOARD,
KAUVERY BHAVAN,
BENGALURU BY ITS
HOUSING COMMISSIONER,
BENGALURU, REP. AEE, KHB,
BELAGAVI.
...APPELLANTS
(BY SMT. SHARMILA PATIL, ADVOCATE)
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MFA No. 23656 of 2012
C/W MFA No. 23657 of 2012
AND
ARJUN BANDU YADAV OF SANKESHWAR,
TALUKA HUKKERI, DIST. BELAGAVI,
(SINCE DECEASED BY LR'S)
1. BHIMSEN ARJUN YADAV,
AGE. 60 YEARS, OCC: AGRICULTURE,
R/O. SANKESHWAR, TQ. HUKKERI,
DIST. BELAGAVI.
2. APPASAHEB ARJUN YADAV,
AGE: 55 YEARS, OCC: AGRICULTURE,
R/O: SANKESHWAR, TQ: HUKKERI,
DIST: BELAGAVI.
3. SURESH ARJUN YADAV,
AGE: 52 YEARS, OCC: AGRICULTURE,
R/O: SANKESHWAR, TQ: HUKKERI,
DIST: BELAGAVI.
4. RAMESH ARJUN YADAV,
AGE: 50 YEARS, OCC: AGRICULTURE,
R/O: SANKESHWAR, TQ: HUKKERI,
DIST: BELAGAVI.
5. NARAYAN SHANKAR YADAV,
AGE: 42 YEARS, OCC: AGRICULTURE,
R/O: SANKESHWAR, TQ: HUKKERI,
DIST: BELAGAVI.
SINCE DECEASED BY LR'S
5(A) BANDU S/O. NARAYAN YADAV,
AGE: 45 YEARS, OCC: AGRICULTURE,
R/O: SANKESHWAR, TQ. HUKKERI,
DIST: BELAGAVI.
6. SADASHIV SHANKAR YADAV,
AGE: 40 YEARS, OCC: AGRICULTURE,
R/O: SANKESHWAR, TQ: HUKKERI,
DIST: BELAGAVI.
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MFA No. 23656 of 2012
C/W MFA No. 23657 of 2012
7. SMT. SUSHILA W/O. NILAPANKAR,
AGE: 60 YEARS, OCC: HOUSEHOLD,
R/O: GADINGLAJ, MAHARASHTRA STATE.
SINCE DECEASED BY LR'S
7(A) RAMACHANDRA S/O. SHANKAR NILPANKAR,
AGE: 55 YEARS, OCC: SERVICE,
R/O: GADHINGLAJ, DIST. KOLHAPUR.
7(B) ASHOK S/O. SHANKAR NILPANKAR,
AGE: 50 YEARS, OCC: SERVICE,
R/O: GADHINGLAJ, DIST. KOLHAPUR.
7(C) DR. SATISH S/O. SHANKAR NILPANKAR,
AGE: 45 YEARS, OCC: DOCTOR,
R/O: GADHINGLAJ, DIST. KOLHAPUR.
8. SMT. SHAKUNTALA NANASAHEB JADHAV,
AGE: 54 YEARS, OCC: HOUSEHOLD,
R/O: GADINGLAJ, DIST. KOLHAPUR,
(REPRESENTED BY GPA HOLDER
JAIPRAKASH NARAYAN NALAWADE OF
SANKESHWAR, TQ. HUKKERI, DIST. BELAGAVI.
9. THE ASSISTANT COMMISSIONER AND LAND
ACQUISITION OFFICER, BELAGAVI.
...RESPONDENTS
(BY SRI. ANIL KALE, ADVOCATE FOR R1-R4, R5(A), R6, R7(A-C) AND
R8 (BY THEIR GPA HOLDER);
SRI. M.M. KHANNUR, ADDITIONAL GOVERNMENT ADVOCATE FOR
R9)
THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54 (1) OF LAND ACQUISITION ACT, 1894, PRAYING TO
ALLOW THE APPEAL AND SET SIDE THE JUDGMENT AND AWARD
PASSED BY THE LEARNED SENIOR CIVIL JUDGE HUKKERI, IN LAC
NO.55/2003 DATED 03.02.2012 AND CONFIRM THE AWARD PASSED
BY THE S.L.A.O. AND ETC.,.
THESE MISCELLANEOUS FIRST APPEALS HAVING BEEN HEARD
AND RESERVED ON 08.04.2025 AND COMING ON FOR
PRONOUNCEMENT OF JUDGMENT THIS DAY, C.M. POONACHA, J.,
DELIVERED THE FOLLOWING:
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MFA No. 23656 of 2012
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CORAM: THE HON'BLE MR. JUSTICE S G PANDIT
AND
THE HON'BLE MR. JUSTICE C.M. POONACHA
CAV JUDGMENT
(PER: THE HON'BLE MR. JUSTICE C.M. POONACHA) Both the appeals are filed under Section 54(1) of the Land Acquisition Act, 18941, challenging the common judgment dated 03.02.2012 passed in LAC Nos.54/2003 and 55/2003 by the Senior Civil Judge, Hukkeri2, whereunder, the reference applications filed under Section 18(1) of the Act were partly allowed and the reference Court has enhanced the market value to ₹10,000/- per gunta excluding poth kharab together with statutory benefits and interest. The details of the appeals and the orders impugned thereon are as under for ready reference:
Sl. MFA Nos. LAC Property Extent
Nos. Nos.
No.
1. MFA No.23656/2012 54/2003 Sy.No.275/1 5 acres 20
guntas
1
Hereinafter referred to as the 'Act'
2
Hereinafter referred to as the 'Trial Court/Reference Court' -7- NC: 2025:KHC-D:7055-DB MFA No. 23656 of 2012 C/W MFA No. 23657 of 2012
2. MFA No.23657/2012 55/2003 Sy.No.275/2A 3 acres 22 guntas
2. The lands which are the subject matter of these appeals situated at Sankeshwar village, Hukkeri taluk, were acquired vide notification dated 14.10.1982 issued under Section 4(1) read with Section 17 of the Act for formation of sites for the benefit of the Karnataka Housing Board3. Award was passed on 31.10.1992 by determining the compensation at ₹4,000/- per acre. The land owners filed reference applications under Section 18(1) of the Act in LAC Nos.54/2003 and 55/2003, claiming enhancement of compensation. The reference Court determined the compensation at ₹12.75 per Sq.feet. Being aggrieved, the beneficiary filed an appeal and the order passed by the reference Court was set aside and the matter was remanded to the reference Court. After remand, the reference Court, vide common judgment dated 03.02.2012, has partly allowed the applications by enhancing the compensation to ₹10,000/- per gunta excluding poth Kharab together with 3 Hereinafter referred to as the 'KHB' -8- NC: 2025:KHC-D:7055-DB MFA No. 23656 of 2012 C/W MFA No. 23657 of 2012 other statutory benefits. Being aggrieved, the present appeals are filed by the beneficiary.
3. Heard submissions of learned counsel Smt. Sharmila M. Patil for the appellant/beneficiary and learned counsel Sri. Anil Kale for the respondents/claimants.
4. Learned counsel for the appellant/beneficiary contends that the enhancement made by the reference Court is exorbitant and that the claimants have not placed any cogent and acceptable evidence determining that the market value is ₹10,000/- per gunta. Further, it is contended that the reference Court has relied on the lands acquired in the year 1989, as the basis for enhancement, when the lands in question have been acquired in the year 1982. It was further contended that a percentage for development of land cost ought to have been deducted, if the converted value of land was being taken into account.
5. Per contra, learned counsel for the claimants contends that the reference Court by noticing the judgment passed in LAC Nos.11/2005 and 49/2003 and other connected matters, has rightly determined the market value at ₹10,000/- per -9- NC: 2025:KHC-D:7055-DB MFA No. 23656 of 2012 C/W MFA No. 23657 of 2012 gunta, which is just and proper. It is further contended that the judgment passed in LAC No.49/2003 was confirmed by this Court in MFA No.6158/2004 and hence the compensation awarded by the reference Court is just and proper.
6. The submissions of both the learned counsels have been considered and the material on record including the records of reference Court have been perused. The question that arises for consideration is, whether the compensation determined by the reference Court is excessive and liable to be interference with by this Court?
7. The relevant facts are undisputed inasmuch as the lands in question have been acquired vide notification dated 14.10.1982 and award was passed on 31.10.1992 by determining the compensation at ₹4,000/- per acre.
8. The acquired lands are situated between two State roads i.e., Sankeshwar-Ghataprabha road and Sankeshwar- Nidasoshi-Sangali road. The land loser has examined four witnesses and marked various documents. The respondents have not examined any witnesses. The award and statement is marked as Ex.D1 and Ex.D2.
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9. It is forthcoming from the record that the lands surrounding the acquired lands have been converted into non- agricultural purposes. A bus stand is situated at a distance of 250 mtrs and State highway is situated at a distance of 300 mtrs from the lands in question. The surrounding lands have already been developed and there are residential houses and other buildings that have been constructed. However, as on date of notification, the acquired lands were not converted for non-agricultural purposes. The acquired lands have the potentiality for being put to non-agricultural use.
10. Although the claimants have adduced voluminous documentary evidence, no documents have been produced demonstrating the market value of non-agricultural lands situated near the acquired properties. A registered valuer has been examined as PW.3 and he has given various notes of calculation of the value of acquired lands.
11. The reference Court noticed the reliance placed by the claimants on the award passed in LAC No.11/2005, wherein, the reference Court fixed the market value at ₹10,000/- per gunta in respect of the notification issued in the year 1989, as
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NC: 2025:KHC-D:7055-DB MFA No. 23656 of 2012 C/W MFA No. 23657 of 2012 also the reliance placed by the claimants on the award passed in LAC No.49/2003, wherein, the value of land was fixed at ₹10,000/- per gunta in respect of the notification issued in the year 1989. The reference Court has also noticed that the said award was confirmed by this Court. Noticing the said aspects, although the reference Court noted that the acquisitions in the present case have commenced in the year 1982, since lands were having all civic amenities, the market value of the acquired lands in the present case is also fixed at ₹10,000/- per gunta excluding poth kharab.
12. The reference Court without considering any other material on record, merely by noticing the awards passed in LAC No.11/2005 and 49/2003 in respect of the notification issued in the year 1989, fixed the market value of lands at ₹10,000/- per gunta, which is ex-facie erroneous.
13. Learned counsel for the claimants has placed on record a copy of a Co-ordinate Bench judgment of this Court in the case of The Registrar University of Agricultural Sciences, Krishinagar, Dharwad Vs. Malharigouda S/o Shankargouda Patil (deceased), by LR's, order dated
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NC: 2025:KHC-D:7055-DB MFA No. 23656 of 2012 C/W MFA No. 23657 of 2012 18.02.2022, passed in MFA No.103279/2014, wherein, this Court, considering the appeal filed challenging a judgment and award passed by the reference Court in LAC No.7/2010 with respect to acquisition of lands acquired vide notification dated 06.10.1972, in Sy.No.399 measuring 9 acres 35 guntas situated in Sankeshwar village, Hukkeri Taluk, which is in the same village as the lands in the present case, wherein, this Court, awarded a sum of ₹6.33 per Sq.ft in respect of 5 acres of land adjacent to the national highway and ₹4.50 per Sq.ft in respect of remaining 4 acres 21 guntas of land.
14. In the preset case, it is relevant to note that a contention was raised before the reference Court by the acquiring authority that the acquired property was not having an approach road, however, the reference Court negatives the said contention by noticing that the government itself had acquired the properties for the purpose of constructing KHB colony, which shows that the lands are having NA potentiality. Having regard to the compensation awarded in MFA No.103279/2014, pertaining to the same village, it is just and proper that the same rate be adopted in the present case.
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15. In MFA No.103279/2014, the compensation was fixed at ₹6.33 per Sq.ft for lands adjoining national highway, whereas for the other lands, a compensation of ₹4.50 per Sq.ft was fixed. Having regard to the fact that the present acquired lands have proximity to the State Highway, it is just and proper that the value be fixed at ₹5 per sq.ft.
16. The lands are acquired for formation of sites. The acquired lands are unconverted lands. However the same has non agricultural potentiality. While determining the compensation, deduction towards development charges is required to be made. Having regard to the size of the acquired land and various other factual matters and also having regard to the legal position as enunciated by the Hon'ble Supreme Court in the case of Union of India vs. Dyagala Devamma and others4, it is just and proper that 50% deduction be made towards development charges.
17. The lands in MFA No.103279/2014 were acquired in the year 1972, whereas, the lands in the present case have been acquired in the year 1982. Hence, escalation is to be 4 (2018) 8 SCC 485
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NC: 2025:KHC-D:7055-DB MFA No. 23656 of 2012 C/W MFA No. 23657 of 2012 awarded for a period of 10 years. The Hon'ble Supreme Court in the case of Manoj Kumar and others vs. State of Haryana and others5 has awarded escalation at 10% per year for 10 years. Hence, escalation for ten years from 1972 to 1982 is taken as 10% per year.
18. Accordingly, the compensation per gunta will be Rs.2,722.5 (Rs.2.5 per sq.feet x 1089) and escalation of 100%, the compensation per gunta to be awarded in the present case is Rs.5,445/- as against Rs.10,000/- per gunta awarded by the Reference Court.
19. Hence, the compensation per gunta will be ₹5445/- (₹5 sq.ft x 1089) and a compensation per acre would be ₹2,17,800/- (₹5445 x 40).
20. The question framed for consideration is answered in the affirmative.
21. In view of the aforementioned the following: 5
(2018) 13 SCC 96
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a) The appeals are partly allowed.
b) The compensation awarded by the reference Court at ₹10,000/- per gunta is reduced to ₹5,445/- per gunta.
c) The awards of the reference Court in all other aspects remain unaltered.
Sd/-
(S G PANDIT) JUDGE Sd/-
(C.M. POONACHA) JUDGE PMP List No.: 1 Sl No.: 40