The Executive Engineer vs Huligemma W/O Mallaiah

Citation : 2024 Latest Caselaw 18543 Kant
Judgement Date : 25 July, 2024

Karnataka High Court

The Executive Engineer vs Huligemma W/O Mallaiah on 25 July, 2024

Author: S G Pandit

Bench: S G Pandit

                                               -1-
                                                     MFA No.102618/2014 C/W
                                                        MFA No.102615/2014,
                                                        MFA No.102616/2014,
                                                       MFA No.102617/2014 &
                                                         MFA No.102619/2014

                      IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
                             DATED THIS THE 25TH DAY OF JULY, 2024
                                            PRESENT
                               THE HON'BLE MR JUSTICE S G PANDIT
                                               AND
                             THE HON'BLE MR JUSTICE G BASAVARAJA
                       MISCELLANEOUS FIRST APPEAL NO.102618 OF 2014
                                          (LAC)
                                           C/W
                       MISCELLANEOUS FIRST APPEAL NO.102615 OF 2014
                       MISCELLANEOUS FIRST APPEAL NO.102616 OF 2014
                       MISCELLANEOUS FIRST APPEAL NO.102617 OF 2014
                       MISCELLANEOUS FIRST APPEAL NO.102619 OF 2014


                      IN MFA NO.102618 OF 2014
                      BETWEEN:

                      THE EXECUTIVE ENGINEER,
                      P.R.E DIVISION, Z.P.E, HOSPET ROAD,
                      2ND GATE, COWL BAZAAR, BELLARY-583102.
                                                                -   APPELLANT
Digitally signed by
VINAYAKA B V          (BY SRI V. SHIVARAJ HIREMATH, ADVOCATE)
Location: HIGH
COURT OF              AND:
KARNATAKA
                             SMT. N. MALLAMMA,
                             SINCE DECEASED BY HER LEGAL REPRESENTATIVES:

                      1(A)   SMT. SARASWATHI W/O. LATE DODDA PARISHI,
                             AGE: 50 YEARS,


                      1(B)   SRI SANNA PARASHURAM S/O. LATE. THIMMAPPA,
                             AGE: 54 YEARS,


                      1(C)   SRI DODDA RAMAIAH S/O. LATE THIMMAPPA,
                             AGE: 45 YEARS,
                             -2-
                                  MFA No.102618/2014 C/W
                                     MFA No.102615/2014,
                                     MFA No.102616/2014,
                                    MFA No.102617/2014 &
                                      MFA No.102619/2014



1(D)      SRI SANNA RAMAPPA S/O. LATE. THIMMAPPA,
          AGE: 43 YEARS,


1(E)      SRI MALLIKARJUNA,
          SINCE DECEASED BY HIS LEGAL REPRESENTATIVES:


1(E)(I)   SMT. VANDRAMMA W/O. LATE MALLIKARJUNA,
          AGE: 38 YEARS,


1(E)(II) N. MAHALAKSHMI D/O. LATE MALLIKARJUNA
         AGE: 17 YEARS,


1(E)(III) N. BHARATH S/O. LATE MALLIKARJUNA,
          AGE: 8 YEARS,

          RESPONDENTS NO.1 E(II) AND (III) ARE MINORS
          AND HENCE THEY ARE REPRESENTED BY THEIR
          NATURAL GUARDIAN AND MOTHER
          SMT. VANDRAMMA RESPONDENT NO. 1E(I)

          ALL RESPONDENTS NO.1E(I) TO (III) ARE COMMONLY
          R/AT: MOKA VILLAGE, BALLARI TALUK, BALLARI
          DISTRICT.

          ALL RESPONDENTS NO.1(A) TO (E) ARE COMMONLY
          R/AT MOKA VILLAGE BALLARI TALUK, BALLARI
          DISTRICT.


2.        ASSISTANT COMMISSIONER AND
          LAND ACQUISITION OFFICER, BELLARY,
          BELLARY REVENUE SUB-DIVISION,
          OFFICE OF DEPUTY COMMISSIONER COMPOUND,
          BELLARY-583101.
                                         -   RESPONDENTS
                            -3-
                                 MFA No.102618/2014 C/W
                                    MFA No.102615/2014,
                                    MFA No.102616/2014,
                                   MFA No.102617/2014 &
                                     MFA No.102619/2014

(BY SRI T. HANUMAREDDY, ADVOCATE FOR R1(E)(I) TO (III);
    SRI M.M. KHANNUR, GOVT. ADVOCATE FOR R2;
    NOTICE TO R1 (B TO D) ARE SERVED)

     THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54(1) OF THE LAND ACQUISITION ACT, 1894, TO SET
ASIDE THE COMMON JUDGMENT AND DECREE DATED
01.03.2014 PASSED IN LAC NO.15/2010 BY THE HON'BLE
FIRST ADDITIONAL SENIOR CIVIL JUDGE, BELLARY, BY
ALLOWING THIS APPEAL AND ETC.,

IN MFA NO.102615 OF 2014
BETWEEN:

THE EXECUTIVE ENGINEER,
P.R.E DIVISION, Z.P.E, HOSPET ROAD,
2ND GATE, COWL BAZAAR, BELLARY-583102.
                                             -   APPELLANT
(BY SRI V. SHIVARAJ HIREMATH, ADVOCATE)

AND:

1.   SMT. PUNDUKURU HONNURAMMA
     W/O. LATE. PUNDUKURU NAGAPPA,
     AGED ABOUT 64 YEARS,

2.   SRI BHARMAPPA S/O. VEERABHADRAPPA,
     AGED ABOUT 54 YEARS,

3.   SRI MUDHI LINGAPPA S/O. GANGAPPA,
     AGED ABOUT 74 YEARS,

4.   SRI MALLIKARJUNA S/O. BENAKAL ERANNA,
     AGED ABOUT 59 YEARS,

     ALL RES.NOS. 1 TO 4 ARE AGRICULTURISTS,
     R/O MOKA VILLAGE, BELLARI TALUK,
     BALLARI DISTRICT.

5.   ASSISTANT COMMISSIONER AND
     LAND ACQUISITION OFFICER, BELLARI,
                              -4-
                                   MFA No.102618/2014 C/W
                                      MFA No.102615/2014,
                                      MFA No.102616/2014,
                                     MFA No.102617/2014 &
                                       MFA No.102619/2014

     BELLARI REVENUE SUB-DIVISION,
     OFFICE OF DEPUTY COMMISSIONER COMPOUND,
     BELLARI-583101.

     DELETED THE NAME OF THE OFFICER RES.NO.5 AS PER
     THE ORDER DATED 01.06.2021 PASSED ON
     I.A.NO.1/2020:

                                          -   RESPONDENTS

(BY SRI T. HANUMAREDDY, ADVOCATE FOR R1 TO R4;
    SRI M.M. KHANNUR, GOVT. ADVOCATE FOR R5;
    NOTICE TO R1 (B TO D) ARE SERVED)

     THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54(1) OF THE LAND ACQUISITION ACT, 1894, TO SET
ASIDE THE COMMON JUDGMENT AND AWARD DATED
01.03.2014 PASSED IN LAC NO.12/2010 BY THE HON'BLE
FIRST ADDITIONAL SENIOR CIVIL JUDGE, BELLARI, BY
ALLOWING THIS APPEAL AND ETC.,

IN MFA NO.102616 OF 2014
BETWEEN:

THE EXECUTIVE ENGINEER,
P.R.E DIVISION, Z.P.E, HOSPET ROAD,
2ND GATE, COWL BAZAAR,
BELLARY-583102.
                                              -   APPELLANT
(BY SRI V. SHIVARAJ HIREMATH, ADVOCATE)

AND:

1.   SMT. PUNDUKURU RAMAIAH S/O. TIMMAPPA,
     AGED ABOUT 64 YEARS,

     SRI P. NAGAPPA,
     SINCE DECEASED BY HIS LR'S

2.   SMT. HONNURAMMA,
     W/O. LATE P. NAGAPPA,
                             -5-
                                  MFA No.102618/2014 C/W
                                     MFA No.102615/2014,
                                     MFA No.102616/2014,
                                    MFA No.102617/2014 &
                                      MFA No.102619/2014

     AGED ABOUT 64 YEARS,

     BOTH RES.NOS. 1 & 2 ARE AGRICULTURISTS,
     R/O. MOKA VILLAGE,
     BELLARI TALUK & DISTRICT.

3.   ASSISTANT COMMISSIONER AND
     LAND ACQUISITION OFFICER, BELLARI,
     BELLARI REVENUE SUB-DIVISION,
     OFFICE OF DEPUTY COMMISSIONER COMPOUND,
     BELLARI-583101.

     DELETED THE NAME OF THE OFFICER RES.NO.3 AS PER
     THE ORDER DATED 01.06.2021
     PASSED ON I.A.NO.1/2020:

                                          -   RESPONDENTS

(BY SRI T. HANUMAREDDY, ADVOCATE FOR R2;
    SRI M.M. KHANNUR, GOVT. ADVOCATE FOR R3;
    NOTICE TO R1 IS SERVED)

     THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54(1) OF THE LAND ACQUISITION ACT, 1894, TO SET
ASIDE THE COMMON JUDGMENT AND AWARD DATED
01.03.2014 PASSED IN LAC NO.13/2010 BY THE HON'BLE
FIRST ADDITIONAL SENIOR CIVIL JUDGE, BELLARI, BY
ALLOWING THIS APPEAL AND ETC.,

IN MFA NO.102617 OF 2014
BETWEEN:

THE EXECUTIVE ENGINEER,
P.R.E DIVISION,
Z.P.E, HOSPET ROAD,
2ND GATE, COWL BAZAAR,
BELLARY-583102.
                                              -   APPELLANT
                                                         -
(BY SRI V. SHIVARAJ HIREMATH, ADVOCATE)
                           -6-
                                MFA No.102618/2014 C/W
                                   MFA No.102615/2014,
                                   MFA No.102616/2014,
                                  MFA No.102617/2014 &
                                    MFA No.102619/2014

AND:

1.   SRI NAGAPPA S/O. THIMMAPPA,
     AGED ABOUT 59 YEARS,

2.   SMT. LAKSHMAMMA W/O. CHANDRAPPA,
     AGED ABOUT 64 YEARS,

     BOTH RES.NOS. 1 & 2 ARE AGRICULTURISTS,
     R/O. MOKA VILLAGE, BELLARI TALUK,
     BELLARI DISTRICT.

3.   ASSISTANT COMMISSIONER AND
     LAND ACQUISITION OFFICER,
     BELLARI,
     BELLARI REVENUE SUB-DIVISION,
     OFFICE OF DEPUTY COMMISSIONER COMPOUND,
     BELLARI-583101.

     DELETED THE NAME OF THE OFFICER RES.NO.3 AS PER
     THE ORDER DATED 01.06.2021 PASSED ON
     I.A.NO.1/2020:


                                       -   RESPONDENTS

(BY SRI T. HANUMAREDDY, ADVOCATE FOR R1 AND R2;
    SRI M.M. KHANNUR, GOVT. ADVOCATE FOR R3)

     THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54(1) OF THE LAND ACQUISITION ACT, 1894, TO SET
ASIDE THE COMMON JUDGMENT AND AWARD DATED
01.03.2014 PASSED IN LAC NO.14/2010 BY THE HON'BLE
FIRST ADDITIONAL SENIOR CIVIL JUDGE, BELLARI, BY
ALLOWING THIS APPEAL AND ETC.,

IN MFA NO.102619 OF 2014
BETWEEN:

THE EXECUTIVE ENGINEER,
P.R.E DIVISION, Z.P.E,
                           -7-
                                MFA No.102618/2014 C/W
                                   MFA No.102615/2014,
                                   MFA No.102616/2014,
                                  MFA No.102617/2014 &
                                    MFA No.102619/2014

HOSPET ROAD,
2ND GATE, COWL BAZAAR,
BELLARY-583102.
                                              -   APPELLANT
(BY SRI V. SHIVARAJ HIREMATH, ADVOCATE)

AND:

1.   SMT. HULIGEMMA W/O. MALLAIH,
     AGED ABOUT 74 YEARS, OCC: AGRICULTURIST,
     R/O. MOKA VILLAGE,
     BELLARI TALUK & DISTRICT.

2.   ASSISTANT COMMISSIONER AND
     LAND ACQUISITION OFFICER,
     BELLARI,
     BELLARI REVENUE SUB-DIVISION,
     OFFICE OF DEPUTY COMMISSIONER COMPOUND,
     BELLARI-583101.

     DELETED THE NAME OF THE OFFICER RES.NO.2 AS PER
     THE ORDER DATED 01.06.2021 PASSED ON
     I.A.NO.1/2020:

                                          -   RESPONDENTS

(BY SRI T. HANUMAREDDY, ADVOCATE FOR R1;
    SRI M.M. KHANNUR, GOVT. ADVOCATE FOR R2)

     THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54(1) OF THE LAND ACQUISITION ACT, 1894, TO SET
ASIDE THE COMMON JUDGMENT AND DECREE DATED
01.03.2014 PASSED IN LAC NO.16/2010 BY THE HON'BLE
FIRST ADDITIONAL SENIOR CIVIL JUDGE, BELLARI, BY
ALLOWING THIS APPEAL AND ETC.,

     IN THESE MISCELLANEOUS FIRST APPEALS, ARGUMENTS
HAVING BEEN HEARD, JUDGMENT RESERVED ON 19.07.2024
AND COMING ON FOR "PRONOUNCEMENT OF ORDERS" THIS
DAY, BASAVARAJA, J., DELIVERED THE FOLLOWING:
                                       -8-
                                              MFA No.102618/2014 C/W
                                                 MFA No.102615/2014,
                                                 MFA No.102616/2014,
                                                MFA No.102617/2014 &
                                                  MFA No.102619/2014

          CORAM:       HON'BLE JUSTICE S G PANDIT
                       and
                       HON'BLE JUSTICE G BASAVARAJA

                         CAV JUDGMENT

(PER HON'BLE MR. JUSTICE BASAVARAJA)

1. Executive Engineer, PRE Division Zilla Panchayat, Ballari, has preferred these appeals challenging the judgment and award dated 01st March, 2014 passed in LAC Nos.12 to 16 of 2010 by the I Additional Senior Civil Judge, Ballari (for short hereinafter referred to as the "Reference Court").

2. For the sake of convenience, the parties in these appeals are referred to with the rank and status before the Reference Court.

3. For easy and better understanding, details of acquired land, the compensation awarded by Special Land Acquisition Officer and by the Reference Court is deduced as under:

Market value Market value Extent of fixed by Survey determined by Sl.No. Land in acres Reference No. SLAO and cents. Court (in Rs.) (in Rs.)
1. 614A 0.97 Rs.61,000/- per Rs.12.00 lakh
2. 614B 10.48 acre with all per acre with all statutory statutory
3. 614 C/1 5.05 benefits. benefits
4. 614C/2 5.14
5. 191B/1 2.00 -9- MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014

4. Brief relevant facts leading to filing of these appeals are that the Respondent No.2-Special Land Acquisition Officer, Assistant commissioner and Land Acquisition Officer Ballari Revenue Sub-Division, Ballari has acquired the above said lands for the purpose of construction of tank, so as to provide water supply to Moka and two other villages under drinking water project. The abovesaid landed properties situate at Moka village, Ballari Taluk and District were acquired by issuing preliminary notification dated 01st May, 2008 under Section 4(1) of the Land Acquisition Act, 1894 (for short hereinafter referred to as "the Act"). The Land Acquisition Officer passed an award on 20th December, 2008 determining the market value of the lands at Rs.61,000/- per acre with all statutory benefits and notice under Section 12(2) of the Act was served upon the claimants on 12th January, 2009. The claimants have filed reference petition under Section 18 of the Act on 05th March, 2009. Same was referred to Reference Court. On receipt of the reference, cases were registered in LAC No.12-16 of 2020 on the file of the I Additional Senior Civil Judge at Bellary. To substantiate the case of claimants, the claimants have examined ten witnesses as PWs.1 to 10 and 44

- 10 -

MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 documents were marked as Exhibits P1 to P44. On closure of claimants' side evidence, respondents have not adduced any evidence on their behalf. On hearing the parties, the Reference Court has allowed the Reference petition in part and determined the market value of the land at Rs.12.00 lakh per acre with statutory benefits. Being aggrieved by this judgment and award passed by the Reference Court, the Executive Engineer, PRE Division, Zilla Panchayat, has preferred this appeal.

5. Sri Shivaraj V. Hiremath, learned counsel appearing for the appellant in all the appeals, would submit that the finding arrived at by the Reference Court is highly unreasonable and unlawful and against the provisions of Section 23 of the Act. The lands in question are dry lands. The Reference Court has failed to consider that the claimants have failed to produce any material document to show that the quantity of annual yield and expenditure incurred in the agricultural operation and thereby rendered injustice to the appellant by awarding exorbitant compensation without following the settled principles of law. Further, he would submit that the claimants relied upon the sale deed Exhibit P15 dated 03rd March, 2006 which

- 11 -

MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 pertains landed property bearing Survey No.604/A measuring 0.55 acres of wet land situate at Moka village and was sold for a consideration of Rs.44,000/- per acre. Exhibit P17 which is the revised guidelines for market value pertaining to the lands situate at Moka village with effect from 01st March, 2008 which is issued by the Secretary, Central Valuation Committee, in which the Market Value of the land shown in document Exhibit P15 will be Rs.1,10,000/- per acre with effect from 01st March, 2008. Accordingly, the market value of the subject lands which are dry lands, will be Rs.60,000/- per acre and the Reference Court, without considering such evidence and documents, has awarded exorbitant compensation which is illegal, arbitrary, perverse and liable to be set aside. Further, he would submit that the Government has acquired the surrounding lands for the purpose of establishment of "International Airport" and fixed the market value at the rate of Rs.16.00 to 20.00 lakh per acre relying upon Exhibit P43 which is the proceedings of the Land Value Fixation Advisory Committee held on 18th March, 2010, wherein the lands situate at Chaganur and Siriwara of Ballari Taluk in an extent of 632.45 acres were acquired for the purpose of Karnataka Industrial Area Development Board for

- 12 -

MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 development of Ballari Airport and further in that proceedings, the market value fixed to the lands situated within 500 meters from Ballari-Moka Road was at Rs.16.00 lakh per acre and for other lands, the market value was fixed at Rs.12.00 lakh per acre. Further, the lands situate at Chaganur and Siriwara villages as shown in Exhibit P43, is altogether of different villages and those lands, by no stretch of imagination, could be compared with the acquired lands in question situated at Moka village, as those lands are situated far away and perusal of Exhibit P35 makes it clear that the lands in the present case are dry lands. Further, the claimants have not adduced any evidence to show that the acquired lands were similar to the land in question covered by document Exhibit P43. If such market value, as arrived in document Exhibit P43 is accepted by the Reference Court as the basis for enhancing compensation, it would result in arbitrary fixation of the market value of the acquired land. It is further submitted that it is settled law that though determination involve some guess work, it must have a reasonable basis and feats of imagination should be eschewed. It is the duty of the Reference Court to award reasonable and adequate compensation and for

- 13 -

MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 assessing the market value, the Reference Court can rely upon such transaction which would offer as reasonable basis to fix the price and such market value fixed in the transaction or judgment or award should have to be proximate to the date of preliminary notification issued under Section 4(1) of the Act and that could be the best piece of evidence. In the instant case, the preliminary notification under Section 4(1) of the Act was issued on 01st May, 2008 whereas the market value determined for the Chaganur and Siriwara villages in document Exhibit P43 shows that proceedings were held on 18th March, 2008 which is clearly a subsequent proceedings which cannot be considered as the basis for fixing market value of the subject land. Furthermore, it is submitted that in respect of lands shown in Exhibit P43, nearly 64 farmers approached this Court in Writ Petitions No.64364 to 64377 of 2010 and connected petitions challenging the acquisition proceedings and this Court with respect to the petitioners lands are concerned, quashed the preliminary as well as final notifications shown in Exhibit P43 vide order dated 04th January, 2012. Therefore, Exhibit P43 is not a conclusive document and the same would be merely a piece of evidence; there cannot be any fixed

- 14 -

MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 criteria for determining the market value in the instant case with respect to the subject lands. Learned Counsel further submits that Clause 1-A of Section 23 of the Act provides that in addition to market value of the land, the court shall, in every case, award an additional market value at the rate of 12% on such market value for the period commencing on and from the date of publication of the notification under Section 4(1) of the Act in respect of such land to the date of the award of the acquisition or the date of taking possession of the land, whichever is earlier. Whereas in the instant case, the Reference Court ordered additional market value at the rate of 12% from the date of 01st May, 2008 i.e. the publication of Section 4(1) Notification, till the date of award i.e. 20th December, 2008 instead awarding till 31st March, 2008 i.e. taking possession of land. His further submission is that the rate of interest awarded by Reference Court is also on the higher side and not in accordance with established principles of law. On all these grounds sought to allow the appeals.

6. On the other hand, Sri M.M. Khannur, learned Government Advocate would submit that the judgment and award passed by the Reference Court is in accordance with law

- 15 -

MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 and does not call for any interference in these appeals and accordingly, sought for dismissal of appeals.

7. Having heard the arguments on both sides, and perusal of appeal papers as well as original records, the following points would arise for our consideration in these appeals:

1) Whether the Reference Court is justified in awarding the compensation of Rs.12.00 lakh per acre?
2) Whether the Reference Court is justified in granting additional market value at 12% from the date of publication of preliminary notification under Section 4(1) of the Land Acquisition Act, 1894 till the date of award?
3) What order or award?

8. Our answer to the above points, is as under:

Point No.1: in the affirmative;
Point No.2: partly in the affirmative;
Point No.3: as per final order
- 16 -
MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 Regarding Point No.1:

9. We have examined the material placed before this Court. It is not in dispute that respondent No.2-Land Acquisition Officer, has acquired the lands in question by issuing preliminary notification dated 01st May, 2008 under Section 4(1) of the Act for the purpose of construction of tank for supply of water to Moka and other villages. It is also not in dispute that the Special Land Acquisition Officer has passed an award on 20th December, 2008 by determining the market value of the land at Rs.61,000/- per acre with statutory benefits. After seeking reference under Section 18 of the Act, the cases were referred to Reference Court for determination of market value for the lands. To substantiate the case of claimants, ten witnesses were examined as PWs.1 to 10 and 44 documents were marked as Exhibits P1 to P44. The claimants contended that these lands are agriculture lands and they grow two crops in a year like chilli, paddy, cotton, groundnut, jowar, sunflower, bajra and their family were depending on the said lands. The said lands are irrigated from the canal and they used to get annual income of Rs.20,000/- to 25,000/- from Chilli crop; Rs.10,000/- from cotton crop; Rs.8,000/- to

- 17 -

MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 10,000/- from groundnut crop; Rs.4,000/- to 5,000/- from jowar crop; and Rs.2,500/- to 3,000/- from paddy crop, accordingly, they use to get income of Rs.80,000/- to 1.00 lakh per annum. It is further stated that the value of the surrounding lands is about Rs.10.00 to 12.00 lakh and that the Government has acquired surrounding lands for the purpose of international airport by fixing the compensation amount of Rs.16.00 to 20.00 lakh per acre. Accordingly, claimants prayed to award the compensation amount of Rs.20.00 lakh per acre with all consequential benefits.

10. From a perusal of judgment passed by the Reference Court, it could be seen that the Reference Court has observed that Exhibit P43 is the proceedings of Land Value Fixation Advisory Committee which is headed by Deputy Commissioner of Ballari and Secretary of the Committee is the Special Land Acquisition Officer, KIADB, Dharwad. The meeting of the Committee was held on 18th March, 2010 regarding the acquisition of property of Chaganur and Siriwara villages of Ballari Taluk for the purpose of construction of Airport. In the said Committee, the Joint Director of District Industries Centre, Development Officer of KIADB, Assistant Commissioner and

- 18 -

MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 Tahsildar, were also Members. Apart from that, in the said meeting there were 82 farmers. After elaborate deliberations and discussions in the meeting, the Committee has come to the conclusion that the market value of the property has to be fixed at Rs.12.00 to 16.00 lakh per acre for the properties of Chaganur and Siriwara villages. The value of the land was fixed at Rs.12.00 lakh per acre and the for the property which is situated about 500 meters away from Moka Road, the value of the land was fixed at Rs.16.00 lakh per acre. Likewise, the property involved in the present Reference cases are also the property of Moka village and at the time of acquisition of the said property, the market value was fixed at Rs.61,000/- per acre. Further, it is observed that since the Government itself fixed the market value of the lands of Chaganur and Siriwara villages to the tune of Rs.12.00 lakh per acre, it is just and necessary to award the same to the claimants also in accordance with the said valuation fixed by the Government as per Exhibit P43. In view of this finding, the Reference Court has determined the market value of the lands at the rate of Rs.12.00 lakh per acre.

- 19 -

MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014

11. In this regard, the learned counsel for the appellant would vehemently submit that Exhibit P43 reveals that the proceedings were held on 18th March, 2010, whereas the preliminary notification under Section 4(1) of the Act pertaining to subject lands was issued on 01st May, 2008 and hence that cannot be considered to determine the market value of the subject land. With regard to Exhibit P43 is concerned, 64 farmers approached this Court in Writ Petitions No.64364 to 64377 of 2010 and connected petitions challenging the acquisition proceedings and this Court quashed the Notification issued by the concerned Special Land Acquisition Officer. Hence, the Exhibit P43 cannot be relied upon. This argument advanced on behalf of the appellant cannot be accepted for the reason that this Court has quashed the Notification pertaining to the lands referred in Exhibit P43. The claimant/farmers pertaining to lands in Exhibit P43 were not questioned as to the market value fixed by the Land Value Fixation Advisory Committee headed by Deputy Commissioner of Ballari and the Secretary is the Special Land Acquisition Officer, KIADB, Dharwad. A perusal of Exhibit P43 makes it clear that the Deputy Commissioner who is the Chairman of the Land Value

- 20 -

MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 Fixation Advisory Committee has passed resolution in the presence of Deputy Commissioner, Ballary, Special Land Acquisition Officer Dharwad, Joint Director, District Industries Centre, Ballari, Development Officer, KIADB, Dharwad, Sub- Division Officer, Ballari, Tahsildar Bellary and 82 farmers of Chaganur and Siriwara villages. This document reveals that after due deliberation and discussion with 82 farmers, the Land Value Fixation Advisory Committee, has fixed the market value of the property at Rs.16.00 lakh which are situated within 500 meters from Ballari-Moka Road and at Rs.12.00 lakh to remaining lands of Chaganur and Siriwara villages. Considering this document which is not disputed by the other side, the Reference Court has determined the market value of the land at Rs.12.00 lakh per acre, which is not excessive or unreasonable. The same is just and reasonable as the market value is fixed by the statutory authority, which is one of the best evidence to determine the actual market value of the property in the absence of any other material evidence.

12. Even if we presume that Exhibit P43 is not relevant to the case on hand, then also the award passed by the Reference Court is not excessive and unreasonable for the

- 21 -

MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 reason that in addition to Exhibit P43, the claimants have produced the document Exhibit P17 which is the revised guidelines issued by the Secretary, Central Valuation Committee, Bangalore for market value of immoveable property pertaining to Moka village which reveals that the market value of the agriculture land situated in Moka village, with effect from 01st March, 2008 is fixed at Rs.15,000/- for one cent. This document is an undisputed document. If the amount for one cent is fixed at Rs.15,000/-, then per acre it comes to Rs.15.00 lakh. In the case on hand, the Reference Court has determined the actual market value of the land at Rs.12.00 lakh based on the market value fixed by the Land Value Fixation Advisory Committee. Had the Reference Court considered this document Exhibit P17, it would have awarded an amount of Rs.15.00 lakh per acre. However, considering the evidence placed before it, the Reference Court has determined the market value of the property at Rs.12.00 per acre, which is not excessive and unreasonable. Same is just and reasonable and does not call for any interference by this Court. Hence, we answer point No.1 in the affirmative.

- 22 -

MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 Regarding Point 2:

13. The Reference Court has awarded additional market value at 12% from the date of publication of preliminary notification under Section 4(1) of the Act, till the date of award. The preliminary notification is issued on 01st May, 2008. The Special Land Acquisition Officer has taken the possession of land as per award passed by the Special Land Acquisition Officer on 31st March, 2008. In view of the provisions of Section 23(1-A) of the Act, in addition to the market value of the land, the Court shall in every case, award an amount calculated at the rate of 12% per annum on such market value for the period commencing on and from the date of publication of notification under Section 4(1) of the Act in respect of such land to the date of award of the Collector or the date of taking possession of the land, whichever is earlier.

14. In the case on hand, the preliminary notification was issued under Section 4(1) of the Act on 01st May, 2008, but the award passed by the Special Land Acquisition Officer reveals that the possession of the land was taken on 31st March, 2008, which is prior to the date of preliminary notification. Therefore, the claimants are entitled for 12% on such market value from

- 23 -

MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 the date of taking possession i.e. from 31st March, 2008 till the date of publication of preliminary notification under Section 4(1) of the Act, i.e. 01st May, 2008. The Reference Court has committed an error in awarding additional market value at 12% from the date of publication of preliminary notification under Section 4(1) of the Act till the date of award. Accordingly, we answer point No.2 partly in the affirmative. Regarding Point No.4

15. For the aforesaid reasons and discussions, we proceed to pass the following:

ORDER i. Appeals are allowed in part;
ii. Market value of the landed properties determined by the Reference Court at Rs.12.00 lakh per acre is confirmed;
iii. As regards statutory benefits are concerned, the award passed by the Reference Court is modified holding that the claimant/appellants are entitled additional market value at 12 per cent per annum on such market value from
- 24 -
MFA No.102618/2014 C/W MFA No.102615/2014, MFA No.102616/2014, MFA No.102617/2014 & MFA No.102619/2014 the date of taking possession of the land, i.e. from 31st March, 2008 till preliminary notification issued under Section 4(1) of the Land Acquisition Act, 1894 dated 01st May, 2008;
iv. Draw award accordingly;
v. Registry to send the copy of this judgment and award along with the trial court records to the concerned court forthwith.
Sd/-
JUDGE Sd/-
JUDGE lnn