2013 Supreme(Kar) 214
KARNATAKA HIGH COURT
K.L. Manjunath and Ravi Malimath, JJ.
Karnataka Industrial Areas Development Board, Bangalore and Another – Appellants
Versus
Nagarajappa and Others – Respondents
Writ Appeal Nos. 5786-5788 of 2012 (LA-KIADB) connected with Writ Appeal Nos. 5289 of 2012, 1854-1870 of 2013 and 5789 of 2012 (LA-KIADE)
Decided on: 26.3.2013
In Writ Appeal Nos. 5786-5788 of 2012
Sri S. Vijayashankar, Advocate General alongwith Sri P.V. Chandrashekar, for Appellants;
Sri M. Shivappa, Senior Advocate for M. Shivappa and Associates for Respondent 1 to 3 and Sri Keshavareddy, Additional Government Advocate, for Respondent-4.
In Writ Appeal Nos. 5289 of 2012, 1854-1870 of 2013
Sri S. Vijayashankar, Advocate General alongwith Sri Basavaraj V. Sabarad, for Appellants;
Sri M. Shivappa, Senior Advocate for M. Shivappa and Associates, for Respondent-1 to Respondent-17 and Sri Keshavareddy, Additional Government Advocate, for Respondent-18
In Writ Appeal No. 5789 of 2012
Sri S. Vijayashankar, Advocate General alongwith Sri P.V. Chandrashekar, for Appellants;
Sri M. Shivappa, Senior Advocate for M. Shivappa and Associates, for Respondent-1 and Sri Keshavareddy, Additional Government Advocate, for Respondent-2.
Headnote:KARNATAKA INDUSTRIAL AREAS DEVELOPMENT ACT, 1966 - Sections 3 & 28:[K.L. Manjunath & Ravi Malimath, JJ] Liability to pay compensation - Land acquisition proceedings were completed in all respects and title of land was passed on to the beneficiary - Possession taken by beneficiary and deposited entire compensation payable to land owners - Held, Even if beneficiary had addressed letter to Government or Development Board stating that lands could not be utilised by beneficiary for purpose for which it was acquired, neither Board nor Government could refund amount so deposited by beneficiary. Refund of amount of compensation to beneficiary, though a mistake committed by Government, Government or Board is liable to recover the same from beneficiary. Board is liable to pay compensation to land owners.
K.L. Manjunath, J.
Challenging the legality and correctness of the order passed by the learned Single Judge in Writ Petition No.45377/2011 and other connected writ petitions dated 28.06.2012 the present appeals are filed.
2. We have heard the learned Advocate General Sri. S. Vijayashankar for the appellants and Sri. M. Shivappa, learned Senior Counsel appearing for the respondents.
3. The facts leading to these appeals are as hereunder;
The writ petitioners were owners of certain agricultural lands situated in Modahalii Village in Kollegal Taluk. The Karnataka Industrial Area Development Board (hereinafter referred to as 'Board' for short) issued a notification under Section 3(1) of the Karnataka Industrial Area Development Act notifying 423.47 acres of land as industrial area. Simultaneously, a notification was also issued under Section 1(3) of the Act on 05.09.2009 and the same was also followed by notification on the same day under Section 28(1) of the Act proposing to acquire the aforesaid lands for establishing a Sugar factory and a power generation unit by a company known as "M/s. Bannari Amman Sugar Limited' and a notification under Section 28(4) of the Act was issued on 24.04.2010 for acquiring 413.33 acres of land.
4. The petitioners and other land owners have consented for passing of a consent award under Section 29(2) of the Act, agreeing. to receive a compensation of Rs.4,50,000/- per acre in respect of dry lands and Rs.5,00,000/- for the wet lands. Accordingly, possession of the land was taken by the KIADB from all the land owners and a notification under Section 28(3) of the Act was issued. Possession of the land was also taken over by the State Government and later the same was handed over to the Board. The Board inturn handed over possession of the land to the beneficiary M/s. Bannari Amman Sugars Limited.
5. After taking possession of the land for sugar factory, levelled the lands of the farmers and foundation stone function for construction of the factory was also laid. A notification was also issued under Section 29(2) of the Act as per advise of the Price Advisory Committee fixing the compensation as stated supra.
6. It is also the case of the writ petitioners that pursuant to the award, the beneficiary M/s. Bannari Amman Sugars Limited deposited the entire compensation payable to the farmers in respect of 423.47 acres of the land with the Land Acquisition Officer. The Land Acquisition Officer disbursed the compensation payable to the land owners to an extent of 80 acres. However, for the reasons best known to the respondents (who are the appellants herein) the compensation was not disbursed to the writ petitioners in spite of their repeated requests. In the circumstances, they filed the writ petitions to issue a writ of mandamus to the appellants herein to pay compensation amount awarded at Rs.4,50,000/- in respect of dry lands and Rs.5,00,000/- for wet lands in respect of acquired lands alongwith the interest accrued thereon.
7. The writ petitions were resisted by the appellants herein. The appellants did not dispute the acquisition of the lands of the petitioners. It was also admitted by the appellants that the Government after taking possession of the lands from the land owners in turn handed over to the Board and the Board inturn handed over the lands to the beneficiary M/s. Bannari Amman Sugars Limited. The appellants also admitted the beneficiary laying a foundation for construction of a factory building on the land acquired. The appellant also did not dispute the amount of compensation deposited by the beneficiary with the Board and Land Acquisition Officer in order to disburse the same to the land owners.
8. The appellants however contended that after completion of the acquisition proceedings in all respects and after handing over of possession of the land to the beneficiary and beneficiary performing the foundation laying ceremony, the Department of Forest, Ecology and Environment, Government of Ka