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2018 Supreme(Kar) 1237

IN THE HIGH COURT OF KARNATAKA AT DHARWAD BENCH
S.SUJATHA, H. B. PRABHAKARA SASTRY, JJ.
Karnataka Industrial Areas Development Board, Represented Herein By Its Secretary – Appellant
Versus
Smt J. Hanumakka – Respondent
M.F.A.No.101713/2016 (LAC) C/w. M.F.A. Nos.101768, 101767, 101761, 101764, 101822, 101743, 101717, 101737, 101748, 101740, 101731, 101787, 101756, 101754, 101803, 101742, 101736, 101823, 101741, 101793, 101732, 101730, 101751, 101747, 101792, 101800, 101820, 101735, 101795, 101723, 101724, 101726, 101728, 101738, 101739, 101744, 101745, 101746, 101769, 101766, 101765, 101763, 101762, 101760, 101759, 101758, 101757, 101755, 101753, 101749, 101782, 101781, 101780, 101779, 101778, 101777, 101776, 101775, 101774, 101773, 101771, 101770, 101799, 101797, 101796, 101791, 101790, 101789, 101788, 101786, 101785, 101784, 101709, 101711, 101712, 101714, 101721, 101718, 101720, 101802, 101772, 101733, 101734, 101798, 101821, 101716, 101715, 101722, 101710, 101729 & 101801 OF 2016
Decided on : 08-01-2018

Advocates:
Advocate Appeared:
For the Appellant : SRI.S.VIJAY SHANKAR, SR. COUNSEL FOR SRI VEERESH R.BUDIHAL, ADV
For the Respondent: SRI.PADMANABHA V.MAHALE, SR. COUNSEL FOR SRI RAKASHEKAR GUNJALLI, SRI GURUDEV GACHCHINMATH, ADV.

Headnote:

Karnataka Court Fees and Suits Valuation Act, 1958 - Land Acquisition Act, 1894 - Section 18 - LA Act - Section 20[2][c] - Karnataka Industrial Areas Development Act, 1966 – Land Acquisition – Compensation enhanced – Appeal against - Appeals filed by Karnataka Industrial Areas Development Board in question Judgment and Award passed by Court of I Additional Senior Civil Judge in L.A.C. and connected matters, whereby compensation fixed by Special Land Acquisition Officer has been enhanced together with statutory benefits thereon as applicable together with solatium at 30% additional market value and interest as directed therein - KIADB has filed these appeals along with applications seeking permission of the Court to prosecute the appeals, contending that the Secretary, KIADB, a necessary party to proceedings was not arrayed as party/respondent in the proceedings before the Reference Court - Held, All contentions of the parties are kept open. Parties are given liberty to adduce evidence, if any, within the time to be granted by the Reference Court - Reference Court is directed to dispose of the proceedings expeditiously and in any event not later than four months from the date of receipt of the copy of this order and the appearance of the appellant-KIADB and beneficiary/respondent No.3 whichever is later - As matter is remanded to the Reference Court for a fresh decision, appellant is entitled for refund of the court fee in terms of Act, 1958. Registry shall refund the court fee accordingly - In the event of withdrawal by the claimants, the same shall be subject to the result of reference petitions – Appeal Disposal of.

JUDGMENT :

Since common questions are involved in these matters, the same are heard together and disposed of by this common Judgment.

2. The present appeals are filed by Karnataka Industrial Areas Development Board [‘KIADB’, for short], calling in question the Judgment and Award dated 1.3.2016 passed by the Court of I Additional Senior Civil Judge, Ballari, at Ballari, in L.A.C. No.32/2013 and connected matters, whereby the compensation fixed by the Special Land Acquisition Officer, KIADB has been enhanced from Rs.1,50,000/-per acre together with statutory benefits thereon as applicable, to Rs.30,20,270/-per acre together with solatium at 30% additional market value and interest as directed therein.

3. The KIADB has filed these appeals along with applications seeking permission of the Court to prosecute the appeals, contending that the Secretary, KIADB, a necessary party to the proceedings was not arrayed as party/respondent in the proceedings before the Reference Court. It was only the Special Land Acquisition Officer and the beneficiary i.e., M/s. Arcelor Mittal India Private Limited have been arrayed as party/respondents.

4. The KIADB in exercise of its powers under the provisions of the Karnataka Industrial Areas Development Act, 1966 [‘Act’, for short], had acquired 4,156.07 acres of land in Kuduthini Village and 709.57 acres of land in Haraginadoni Village, vide Preliminary Notification issued under Section 28[1] of the Act on 6.2.2010 and the final Notification issued under Section 28[4] of the Act on 4.5.2010 for formation of industrial area. The Land Acquisition Officer passed the Award determining the market value of the acquired lands at Rs.1,50,000/-per acre along with all statutory benefits. The claimants not being satisfied with the Award passed by the Special Land Acquisition Officer, filed Reference Petitions under Section 18 of the Land Acquisition Act, 1894 [‘LA Act’, for short]. The Reference Court enhanced the market value from Rs.1,50,000/-per acre in Kuduthini Village to Rs.30,20,270/-per acre together with all statutory benefits. Being aggrieved by the same, KIADB is in appeal.

5. Learned Senior Counsel Sri. S. Vijay Shankar representing learned Counsel Sri. Veeresh R. Budihal, for the Appellant, submitted that KIADB is a necessary party for adjudication of reference petition. The Judgment and Award passed by the Reference Court suffers from a fundamental legal defect in not notifying the necessary party KIADB, in whose benefit, the lands were acquired. It was submitted that KIADB is a statutory and wholly owned infrastructure agency of Government of Karnataka, set up under the Act and functions as per statutory provisions, rules and regulations enacted thereunder. KIADB comprises of Senior Government Officers in their Ex-officio capacities. The applicant being first Government Organization in Karnataka has obtained ISO.9001 certification in the year 1997 and is following ISO 9001:2000 module covering its functions of land acquisition, development and allotment functions in the State of Karnataka. That being the position, the Secretary, KIADB was a necessary party respondent before the Reference Court. The Special Land Acquisition Officer, KIADB is only the designated authority having delegated powers of holding an enquiry under the relevant provisions of the Act, to determine the compensation and market value of the lands and to pass general award. The Special Land Acquisition Officer, KIADB is only adjudicating authority performing quasi judicial function of determining the compensation and as such no relief can be sought as against the Special Land Acquisition Officer, KIADB, who is neither an aggrieved person nor a necessary party whereas the appellant herein is a proper and necessary party. The land acquisition proceedings under the scheme of the Act commenced from the stage of issuance of Preliminary Notification till passing of the Award and after passing of the Award, the Special Land Acquisition Offi

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