Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(Kar) 18748

THE HIGH COURT OF KARNATAKA
Anu Sivaraman, Tara Vitasta Ganju, JJ
Hemaraj K Jain – Appellant
Versus
Special Land Acquisition Officer-02 – Respondent
MFA No.8679 OF 2024 | MFA No.5171 OF 2025

Advocates:
For the Appellants/Petitioners: Purushotham R.
For the Respondents: P.V. Chandrashekar, Radha Ramaswamy (AGA), A. Ravishankar, Sriharsha K.V., Manasi Kumar

Landowners are entitled to interest at the rate of 9% per annum on package compensation determined under the Karnataka Industrial Areas Development Act, 1966, from the date of taking physical possession until the date of full deposit of the compensation, regardless of the consensual nature of the award.

Headnote:(A) Karnataka Industrial Areas Development Act, 1966 - Sections 29(2) and 30 - Land Acquisition - Entitlement to interest on package compensation - Possession taken over - Failure to deposit package compensation in full - Held, land losers are entitled to 9% interest from the date of taking possession till the date of actual deposit of compensation - Principle reaffirmed that interest is payable even on consensual package awards if not deposited timely. (Paras 8, 10, 11, 12, 13)

Facts of the case:
The appellants, claiming ownership of land acquired for the Bangalore Metro Rail project, challenged the delays and the nature of compensation awarded. Despite possession being taken on April 21, 2018, the full package compensation under Section 29(2) of the KIAD Act was not deposited, leading to litigation regarding the payment of interest on the amount determined by agreement.

Findings of Court:
The court held that the appellants are entitled to interest at the rate of 9% per annum from the date of possession (21.04.2018) until the actual deposit of the full package compensation amount by the KIADB. It rejected the contention that consensual awards are exempt from interest requirements.

Issues: Whether landowners are entitled to interest on package compensation under the KIAD Act from the date of taking possession when the agreed amount remains unpaid.

Ratio Decidendi: Consensual package compensation under the KIAD Act must be paid promptly. If delayed, land losers are entitled to interest as the obligation to indemnify for the loss of land arises upon dispossession, and legislative intent does not exclude interest for delayed payments of consensual awards.

Result: Appeals allowed; judgment modified for payment of 9% interest.

Table of Content
1. overview of land acquisition events and procedural history. (Para 1 , 2 , 3 , 4)
2. appellants' request for interest on delayed compensation vs respondents' defense. (Para 5 , 6 , 7)
3. court establishes right to 9% interest on package compensation. (Para 8 , 9 , 10 , 11 , 12 , 13)
4. formal court order regarding payment and interest calculation. (Para 14)

IN MFA NO.8679 OF 2024:

BETWEEN:

1 . HEMARAJ K JAIN

S/O LATE KAPOOR CHAND

AGED ABOUT 74 YEARS

#10/3, 2-3RD FLOOR

JIYANI SADAN

SUBRAMANYA SWAMY TEMPLE STREET

OPP. V.V. PURAM COLLEGE

V.V. PURAM, BENGALURU-560 004

2 . DINESH SONEGARA

AGED ABOUT 67 YEARS

S/O LATE KASTUR CHAND

RESIDING AT: No.26

KRUMBIGAL ROAD

LALBAGH MAVALLI

BENGALURU-560 004

3 . R. RAMESHA

S/O ESHWAR RAO @ ESHWARAPPA

AGED ABOUT 69 YEARS

PRESENTLY AT: 169/2, 1

4TH MAIN ROAD, 7TH CROSS

CHAMARAJPET

BENGALURU-560 018

...APPELLANTS

(BY SRI. PURUSHOTHAM R., ADVOCATE)

AND:

1 . THE SPECIAL LAND ACQUISITION OFFICER-02

KIADB, 1ST FLOOR

MAHARSHI ARAVIND BHAVAN

NRUPATHUNGA ROAD

BENGALURU-560 001

2 . STATE OF KARNATAKA

REPRESENTED BY TAHSILDAR

KANDAYA BHAVAN,

BENGALURU SOUTH TALUK

K.G. ROAD, BENGALURU-560 009

3 . BANGALORE METRO RAIL CORPORATION LTD.

(KIADB), 3RD FLOOR,

BMTC COMPLEX, K.H. ROAD

SHANTHINAGAR, BENGALURU-562 107

4 . SRI. BALAJI K.

S/O LATE K. KRISHNAM RAJU

AND MRS. LAKSHMAMMA

AGED ABOUT 47 YEARS

5 . SMT. RASHMI. R.S.

AGED ABOUT 37 YEARS

W/O LATE K. SRINIVASAMURTHY

6 . MASTER RAKSHITH

S/O LATE K. SRINIVASAMURTHY

AGED ABOUT 17 YEARS

SINCE MINOR,

REP. BY MOTHER/ NATURAL GUARDIAN

RESPONDENT No.5

RESPONDENTS No.4 TO 6 ARE

RESIDING AT No.41, 5TH TEMPLE ROAD

13TH CROSS, MALLESHWARAM

BENGALURU-560 003

...RESPONDENTS

(BY SRI. P.V. CHANDRASHEKAR, ADVOCATE FOR R1;

SMT. RADHA RAMASWAMY, AGA FOR R2;

SRI. A. RAVISHANKAR, ADVOCATE FOR R3;

SRI. SRIHARSHA K.V., ADVOCATE FOR R4 TO R6)

THIS MFA IS FILED U/S.54(1) OF THE LAND ACQUISITION

ACT, 1891, AGAINST THE JUDGMENT AND AWARD DATED

21.12.2023 PASSED IN LAC No.126/2022 ON THE FILE OF THE II

ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, BENGALURU,

(CCH No.17) FILED U/S.30 AND 31 OF THE KARNATAKA

INDUSTRIAL AREAS DEVELOPMENT ACT, 1966.

IN MFA NO.5171 OF 2025:

BETWEEN:

LAKSHMAMMA

W/O LATE KRISHNAMRAJU

# 86, SARJAPURA THINDLU

ANEKAL TALUK

BENGALURU-562 107

SINCE DEAD, BY HER LRS

AT SL. No.1, 2 AND 3 HERE BELOW

1 . SRI. BALAJI K.

S/O LATE K. KRISHNAM RAJU

AND MRS. LAKSHMAMMA

AGED ABOUT 47 YEARS

2 . SMT. RASHMI R.S.

W/O LATE K. SRINIVASAMURTHY

AGED ABOUT 37 YEARS

3 . SRI. RAKSHITH

S/O LATE K. SRINIVASAMURTHY

AGED ABOUT 17 YEARS

SINCE MINOR, REPRESENTED BY

NATURAL GUARDIAN/MOTHER

SMT. RASHMI R.S.

ALL ARE RESIDING AT No.41

5TH TEMPLE ROAD, 13TH CROSS

MALLESHWARAM

BENGALURU-560 003

...APPELLANTS

(BY SRI. PURUSHOTHAM R., ADVOCATE)

AND:

1 . THE SPECIAL LAND ACQUISITION OFFICER-02

KIADB, 1ST FLOOR

MAHARSHI ARAVIND BHAVAN

NRUPATHUNGA ROAD

BENGALURU-560 010

2 . STATE OF KARNATAKA

REVENUE DEPARTMENT

VIKASA SOUDHA

AMBEDKAR VEEDHI

BENGALURU-560 010

3 . BANGALORE METRO RAIL CORPORATION LTD.

(KIADB), 3RD FLOOR

BMTC COMPLEX, K.H. ROAD

SHANTHINAGAR

BANGALORE-560 027

4 . SMT. PREMA A.R.

W/O LATE A.M. RAMARAJU

AGED ABOUT 64 YEARS

5 . GAYATHRI A.R.

D/O LATE A.M. RAMARAJU

AGED ABOUT 43 YEARS

6 . SHRUTHI A.R.

D/O LATE A.M. RAMARAJU

AGED ABOUT 37 YEARS

RESPONDENTS No.4 TO 6 ARE

RESIDING AT No.536, 10TH MAIN ROAD

5TH BLOCK, BENGALURU-560 041

7 . PRADEEP KUMAR B.R.

S/O SRI. RUDREGOWDA

AGED ABOUT 44 YEARS

RESIDING AT No.31234

23RD FLOOR, BUILDING No.3

TOWER-1, PRESTIGE FALCON CITY APARTMENT

KANAKAPURA MAIN ROAD

KONANAKUNTE CROSS

BENGALURU-560 062

8 . A. CHENNA REDDY

S/O SRI. GURUVI REDDY

AGED ABOUT 53 YEARS

R/AT No.143, PHASE-2

CLASSIC ORCHARDS

MEENAKSHI TEMPLE

BANNERGHATTA ROAD

BENGALURU SOUTH

BENGALURU-560 076

9 . M.V. RAMASWAMY RAJU

S/O VENKATARAMA RAJU

AGED ABOUT 63 YEARS

R/AT. No.401, AKSHAYA PRIDE APT.

KOTHANUR DINNE

J.P. NAGAR 7TH PHASE

BENGALURU-560 076

10 . S. GOPINATH

S/O LATE SUBBARAJU

AGED ABOUT 61 YEARS

R/AT No.661, 6TH MAIN ROAD

RBI LAYOUT, J P NAGAR 7TH PHASE

BENGALURU-560 041

...RESPONDENTS

(BY SRI. P.V. CHANDRASHEKAR, ADVOCATE FOR R1;

SMT. MANASI KUMAR, ADVOCATE FOR R3;

SMT. RADHA RAMASWAMY, AGA FOR R2

Click Here to Read the rest of this document

2026 Supreme(Online)(Kar) 18748

THE HIGH COURT OF KARNATAKAAnu Sivaraman, Tara Vitasta Ganju, JJHemaraj K Jain – AppellantVersusSpecial Land Acquisition Officer-02 – RespondentMFA No.8679 OF 2024 | MFA No.5171 OF 2025

THE HIGH COURT OF KARNATAKA
Anu Sivaraman, Tara Vitasta Ganju, JJ
Hemaraj K Jain – Appellant
Versus
Special Land Acquisition Officer-02 – Respondent
MFA No.8679 OF 2024 | MFA No.5171 OF 2025