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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
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
