SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 Supreme(Kar) 1060

IN THE HIGH COURT OF KARNATAKA
Krishna S.Dixit, J.
M.V. Guruprasad & Ors. – Appellants
Versus
State of Karnataka & Ors. – Respondents
Writ Petition No. 61426 of 2016 (LA-KIADB)
Decided On : 10-02-2023

Advocates appeared:
Veeranna G Tigadi, Advocate, Sridhar Hegde, Advocate, P V Chandrashekar, Advocate

The obligation to pay compensation for land acquired for public purposes is a fundamental requirement under both statutory law and constitutional provisions, and failure to do so constitutes a violation of property rights.

Headnote:

ACQUISITION - LAND ACQUISITION AND COMPENSATION - KARNATAKA INDUSTRIAL AREAS DEVELOPMENT ACT, 1966; RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013; ARTICLE 300A OF THE CONSTITUTION - The court discussed the provisions of the Karnataka Industrial Areas Development Act, 1966, particularly Sections 28(1) and 28(4), which pertain to land acquisition notifications. It also referenced the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, emphasizing the necessity of compensation for acquired land. The court interpreted Article 300A of the Constitution, which guarantees the right to property, highlighting that compensation is a fundamental requirement for lawful acquisition. The court's decision was influenced by the failure of the KIADB to pay compensation despite the acquisition process being completed, leading to a mandate for compensation to be determined under the 2013 Act.

Fact of the Case:

The Petitioners, owners of certain lands, challenged their acquisition by the Karnataka Industrial Areas Development Board (KIADB) through notifications issued in 2007. They argued that their names were not included in the acquisition notifications, compensation had not been paid despite requests, and the delay in payment violated their rights under Article 300A of the Constitution.

Finding of the Court:

The court upheld the validity of the land acquisition but found the KIADB's failure to pay compensation unjustifiable. It noted that the Petitioners had made multiple requests for compensation and that the KIADB had received substantial funds from the allotment of the lands without compensating the Petitioners.

Issues: Whether the acquisition of land was valid despite the Petitioners' names not being included in the notifications, and whether the KIADB's failure to pay compensation constituted a violation of the Petitioners' rights.

Ratio Decidendi: The court concluded that while the acquisition was valid, the obligation to pay compensation is a fundamental aspect of the acquisition process. The delay in payment and the lack of justification for withholding compensation were deemed unacceptable, warranting a directive for compensation to be calculated under the 2013 Act.

Final Decision: The court issued a Writ of Mandamus directing the KIADB to determine and pay compensation to the Petitioners based on the provisions of the 2013 Act, along with interest and additional costs, while dismissing the challenge to the acquisition itself.

JUDGMENT

Krishna S Dixit, J.

The tone for this judgment can be set by adverting to the words of Saint Augustine (354 - 430 A.D.) in his book, The City of God, Volume 1 (426 A.D):

    'Without justice, what else is the State but a great band of robbers ...?'

2. Petitioners being the owners of lands in question are knocking at the doors of Writ Court grieving against their acquisition vide Preliminary Notification dated 09.01.2007 issued under Section 28(1) followed by the Final Notification dated 17.05.2007 issued under Section 28(4) of the Karnataka Industrial Areas Development Act, 1966.

3. Learned counsel for the Petitioners seeks voiding of the acquisition on the following grounds that:

    (i) His clients were already owners of the subject lands and therefore, their names ought to have figured in the acquisition notifications;

(ii) Petitioners vide Letter dated 09.01.2013 had requested the KIADB to pass the award and pay compensation; there has been a stony silence; payment of compensation is a precondition for sustaining acquisition;

(iii) Alternatively, the compensation should be paid to his clients under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act 2013 (hereafter 2013 Act), especially when the KIADB has allotted the subject lands by charging a huge sum of Rs.7.5 Crore or so, that too after giving a rebate of 50% to the allotees;

(v) There is enormous delay unjustifiably brooked in making the payment of compensation, that militates against the spirit of Article 300A of the Constitution which guarantees right to property; till date no payment is made and nothing is stated about the same in the Statement of Objections filed by the KIADB.

4. After service of notice, the State has entered appearance through the learned AGA and the KIADB is represented by its Sr. Panel Counsel who has filed the Statement of Objections opposing the acquisition. Learned Panel Counsel contends that the acquisition having been completed by issuance of Final Notification on 17.05.2007, the lands have vested in the State and therefore, the same cannot be restored to the Petitioners. After the land owners notified the change of khatha pursuant to subject Sale Deeds, the Government has issued Corrigendum Notification on 05.06.2014 mentioning their names and because of the protocol process, there is some delay and now the payment of compensation will be made. So contending, they seek dismissal of Writ Petition.

5. Having heard the learned counsel for the parties and having perused the Petition papers, although this Court rejects challenge to acquisition of lands, it is inclined to grant indulgence in so far as non payment of compensation, following being the reasons:

    (a) The 1st Petitioner bought 05 Acres & 01 Gunta of land in Sy.No.132 of Jonnahalli in Devanahalli Taluka by three registered Sale Deeds all dated 27.01.2007 and his name is mutated in the Revenue Records vide M.R. Nos.48, 49 & 50 of 2006-07 dated 22.03.2007. The 2nd Petitioner bought only 38 Guntas of land in Sy.No.66/6 of the same village vide two Sale Deeds both dated 23.12.2006 and his name came to be mutated in the Revenue Records vide M.R.No.43/2006-07 dated 14.04.2007 & M.R.No.60/2006-07 dated 21.04.2007. Thus, as on the date of Preliminary Notification i.e., 09.01.2007, names of the Petitioners had not figured as khatedars in the Revenue Records and therefore, the KIADB was justified in notifying the acquisition in the names of their vendors then, who were the Khatedars.

(b) The vendors had not filed Objections to the acquisition since they had lost ownership over the lands, by virtue of registered sale deeds, is true. However, Petitioners along with other land owners had filed their Objections on 15.02.2007 vide Annexure - Q1, pursuant to the Notice dated 11.01.2007 issued by the SLAO himself under Section 28(2) of the 1966 Act. They had informed the KIADB about the land being adjacent to the village and also close to flying zone of Inter

    Click Here to Read the rest of this document
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    11
    SupremeToday Portrait Ad
    supreme today icon
    logo-black

    An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

    Please visit our Training & Support
    Center or Contact Us for assistance

    qr

    Scan Me!

    India’s Legal research and Law Firm App, Download now!

    For Daily Legal Updates, Join us on :

    whatsapp-icon Back to top