Court upheld that compensation for land acquisition exceeding five crores requires state approval; prior unapproved awards are invalid, and res judicata bars re-litigation of previously decided matters.

JUDGMENT :

(PER: HON'BLE MR. JUSTICE D K SINGH)

1. This appeal has been filed challenging the impugned judgment and order dated 12.11.2024, passed by the learned Single Judge in Writ Petition No.12603/2024 (LA-KIADB).

2. The parties are referred to as per their ranking in the writ petition.

3. The petitioners' land was acquired by the Karnataka Industrial Areas Development Board, by issuing Final Notification under Section 28 (4) of Karnataka Industrial Areas Development Act, 1966 (for short, `KIAD Act'), dated 15^th December 2017. The compensation amount for the land of the petitioners acquired was assessed by the Special Land Acquisition Officer at Rs.197,28,34,758/-.

4. The petitioners had filed Writ Petition No.15168/2023, seeking a direction to the respondents to disburse the compensation amount of Rs.197,28,34,758/-. The beneficiaries i.e., Mangaluru Refinery and Petrochemicals Ltd., had filed Writ Petition No.22685/2023, challenging the Notifications dated 15^th December 2017 and 25^th November 2020, issued under Section 28 (4) of KIAD Act. These two writ petitions were clubbed together and by the common order dated 22^nd February 2024, the learned Single Judge dismissed the Writ Petition No.22685/2023 filed by the beneficiaries/Mangaluru Refinery and Petrochemicals Ltd., and the other Writ Petition No.15168/2023 filed by the petitioners was allowed in-part. The respondents-authorities were directed to disburse the amount of Rs.55,69,76,660, in terms of the General Award dated 7^th July 2023, by the Special Land Acquisition Officer.

5. Thereafter, the petitioners filed the present Writ Petition No.12603/2024 contending that the Land Acquisition Officer had already passed the award for an amount of Rs.197,28,34,758/- on 16^th March 2023, and the subsequent award dated 7^th July 2023 would be non est. The respondents be directed to give effect to the award dated 16^th March 2023 and petitioners be paid the amount of Rs.197,28,34,758/-, instead of Rs.55,69,76,660/-.

6. The Writ Court has been of the view that, in view of the provisions of Sections 28 , 29 and 30 of KIAD Act, and as per the Circular issued by the Government dated 25^th January 2022, any award amount above Rs.5 crores is required to be approved by the State Government. In the present case, as the award dated 16^th March 2023 for an amount is Rs.197,28,34,758/- was not approved by the State Government, the State Government asked the Special Land Acquisition Officer to recalculate the amount to be paid to the petitioners. On re-calculation, the Land Acquisition Officer has assessed the award amount at Rs.55,69,76,660/-.

7. The learned Senior Counsel Mr.K.G.Raghavan has submitted that, as per Section 23 of the Right to Fair Compensation and Transparency of Land Acquisition, Rehabilitation and Resettlement Act, 2013, it is the Land Acquisition Officer who is empowered to determine the compensation and there is no requirement for any Government approval of the award. He would further submit that, there are no statutory rules which have been framed by the State Government, that would require the approval of the State Government for an award in respect of the land acquired and the award passed by the Land Acquisition Officer would be final and there is no question of re-determining the award on the direction of the State Government.

8. Learned Senior Counsel for the petitioners has further submitted th