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2026 Supreme(Online)(Tel) 15879

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
P. Sam Koshy, Narsing Rao Nandikonda, JJ
Kurva Hanumanthu – Appellant
Versus
State of Telangana – Respondent
WRIT PETITION No.5444 of 2026



Advocates:
For the Appellants/Petitioners: Ms. Srilekha Pujari
For the Respondents: Mr.E.Ramesh Chandra Goud, Mr. Vivek Jain

A claimant cannot be denied their rightful compensation for land acquisition due to systemic misappropriation of court funds by staff, provided their entitlement was established and the deposit predates the reported scam period.

Headnote:(A) Constitution of India - Art. 226 - Writ petition seeking release of land acquisition compensation - Court custody deposit - Petitioner declared rightful owner by Trial Court and confirmed by High Court - Delay in release due to misappropriation of court funds by staff - Principle of law: A bona fide claimant cannot be denied rightful compensation due to departmental scams or administrative lapses occurring outside their period of claim. (Paras 16, 26, 27)

Facts of the case:
The petitioner’s land was acquired for a reservoir project and compensation was deposited in 2012. Title disputes were resolved in petitioner’s favor in 2016 and upheld by the High Court in 2024. Despite this, the lower court refused to release the compensation, citing an internal scam involving the misappropriation of Civil Court Deposit (CCD) funds by a staff member between 2015 and 2022, and blanket oral instructions from the Registry to withhold payments for pre-2022 deposits.

Findings of Court:
The court held that the reasons for withholding compensation were vague and unjustified. Since the deposit was made in 2012, prior to the scam period (2015-2022), the petitioner should not be made a scapegoat for judicial staff misconduct. The court issued comprehensive guidelines for the reconciliation of CCD accounts and the processing of pending cheque petitions.

Issues: Whether the court can deny legitimate compensation to a land owner due to a systemic misappropriation of court deposits occurring after the date of such deposit.

Ratio Decidendi: An individual claimant cannot be denied their property rights under Art. 300-A due to administrative failures or criminal misappropriation of funds occurred during the tenure of a court official, provided the claimant's link to the deposit is verified and the deposit predates the fraudulent activities. Result : Writ petition allowed.

Table of Content
1. petitioner seeks release of compensation stalled due to court account discrepancies. (Para 3 , 4 , 5 , 6 , 7 , 8)
2. respondents justify withholding payment citing investigation into staff misappropriation. (Para 9 , 10 , 11 , 12)
3. court scrutinizes legitimacy of withholding compensation for pre-existing deposits. (Para 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
4. establishing administrative framework for ccd account audits and disbursement. (Para 21 , 22 , 23 , 24 , 25)
5. court allows petition directing release of funds to claimant. (Para 26 , 27 , 28 , 29)

ORDER: (per the Hon’ble Sri Justice Nandikonda Narsing Rao)

Heard Ms. Srilekha Pujari, learned counsel for the petitioner; Mr.E.Ramesh Chandra Goud, learned Government Pleader for Land Acquisition appearing for respondent No.1 to 3; Mr. Vivek Jain, learned Standing Counsel for the High Court appearing for respondent No.4.

2. The instant writ petition has been filed by the petitioner under Article 226 of the Constitution of India seeking the following relief/s, viz.,

“……i) to declare the action of the Respondent No.4 in not releasing the land acquisition compensation amount in OP No.19 of 2012 on the file of Hon’ble Senior Civil Judge, at Gadwal, dated 28.09.2016 despite of final adjudication of title, as illegal, arbitrary, violative of Article 300-A of the Constitution of India; ii) to direct the respondent No.4 to take steps for release of the compensation amount in OP No.19 of 2012 on the file of Hon’ble Senior Civil Judge, Gadwal, dated 28.09.2016 lying in court deposit/FD to the petitioner and pass such other order or orders.”

3. The facts of the case are that the petitioner’s claim to be the owner of land in Sy No.73 admeasuring Ac.4-17 gts, Sy.No.74 admeasuring Ac.0-16 gts, Sy No.75 admeasuring Ac.2-29 gts of total extent of Ac.7-12 gts. Later, the respondent No.2 i.e., Land Acquisition Officer-cum-Special Deputy Collector (LA) unit JLIP, Gadwal has acquired the said petitioner’s land under Land Acquisition Act, for the purpose of formation of Ryalampad Balancing Reservoir. However, there was a title dispute between the petitioner and Sri G.Srinivasa Rao, G.Govind Rao, G.Vijaya Rao. The Land Acquisition Officer filed petition vide O.P.No.19 of 2012 before Senior Civil Judge, Gadwal and the learned Senior Civil Judge, Gadwal declared the petitioner herein as rightful owner and also granted compensation amount of Rs.8,08,700/-. The other respondents therein have preferred Appeal Suit before this Court, vide AS No.240 of 2017, and this Court after perusing the entire material on record has dismissed the appeal on 23.07.2024 and the matter has attained its finality.

4. As matter stood, the petitioner filed cheque petition before Senior Civil Judge, Gadwal in CRF.No.1325 of 2024 in OP No.19 of 2012, dated 23.10.2024 under Section 151 of CPC and later filed urgency memo petition seeking to direct the concerned to issuance authority for issuance of cheque to an amount of Rs.8,08,700/-, which was deposited in the Court by the Land Acquisition Officer, vide CRF No.1325 of 2024 in OP No.19 of 2012. The Senior Civil Judge, Gadwal, however did not number the petition and returned the petitioner by stating that the Cheque petitions are being issued only in respect of amounts deposited on or after 01.04.2022 and in the present case, the compensation amount was deposited in the Court custody on 09.03.2012.

5. On further enquiry by the petitioner, it was informed that one Sri Y.Sathyanarayana, Senior Superintendent who worked in the Court of Principal Senior Civil Judge Gadwal from 2015 to 2022 has scammed the compensation amount deposited in Court custody and a case has been registered against him before ACB, Mahabubnagar and further stated that on oral instructions from the High Court for the State of Telangana, the cheque petitions are not being entertained in respect of amounts deposited prior to 01.04.2022. Aggrieved by the same, the present writ petition is file

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