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
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):
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:
(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:
(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
K.T PLANTATION vs. STATE of KARNATAKA (2011) 9 SCC 1
RAMANA DAYARAM SHETTY vs. INTERNATIONAL AIRPORT AUTHOITY AIR 1979 SC 1628
STATE of BIHAR vs. MAHARAJADHIRAJA SIR KAMESHWAR SINGH (1952) SCR 889
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 violat....
High Court should not adopt a pedantic approach, but decide matter keeping in view constitutional goals of social and economic justice.
The State must comply with due process for land acquisition and compensate fairly; failure to follow procedures amounts to a constitutional violation.
The main legal point established in the judgment is that once the Final Notification is issued under the Karnataka Industrial Areas Development Act, 1966, the land vests in the State, and objections ....
The 2013 Land Acquisition Act is not applicable to acquisition proceedings initiated under the Karnataka Industrial Areas Development Act, 1966, which operates as a self-contained code.
The duty to compensate upon land acquisition is a constitutional safeguard, ensuring no individual is deprived of property without legal due process and fair compensation, embodied in Article 300A.
The right to property under Article 300A must be upheld through due legal processes; unlawful dispossession by state authorities mandates compensation per statutory requirements.
The main legal point established in the judgment is the government's obligation to initiate proceedings for determining adequate compensation for acquired land as per the provisions of the LARR Act 2....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.