The Deputy Chief Engineer vs The President
2025 Latest Caselaw 3277 Kant

Karnataka High Court

The Deputy Chief Engineer vs The President on 11 August, 2025

Author: S.Sunil Dutt Yadav

Bench: S.Sunil Dutt Yadav

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                                                      NC: 2025:KHC-D:10000-DB
                                                     MFA No. 100836 of 2018
                                                 C/W MFA No. 100834 of 2018
                                                     MFA No. 100835 of 2018
                  HC-KAR



                 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

                           DATED THIS THE 11TH DAY OF AUGUST, 2025
                                           PRESENT
                      THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV
                                              AND
                      THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL
                                 M.F.A. NO.100836 OF 2018 C/W
                                 M.F.A. NO.100834 OF 2018 AND
                                 M.F.A. NO.100835 OF 2018 (LAC)

                 IN M.F.A. NO.100836 OF 2018

                 BETWEEN:

                 THE DEPUTY CHIEF ENGINEER,
                 CONSTRUCTION (CENTRAL),
                 SOUTH WESTERN RAILWAY,
                 KESHWAPUR, HUBBALLI-580020, DIST:DHARWAD.
                                                                -     APPELLANT
                 (BY SRI. MALLIKARJUN S. HIREMATH, ADVOCATE)

                 AND:

                 1.   THE PRESIDENT.
Digitally
signed by
                      AROGYA NAGAR GRUHA NIRMAAN,
VINAYAKA B V
Location: High
Court of
                      SAHAKARI SANGH (REGD),
Karnataka,
Dharwad
Bench                 DHARWAD-580007.

                 2.   THE ASSISTANT COMMISSIONER.
                      AND LAND ACQUISITION OFFICER,
                      DHARWAD-580001.

                 3.   THE PRINCIPAL SECRETARY,
                      REVENUE DEPARTMENT, M. S. BUILDING,
                      BENGALURU-560001.
                                                           -        RESPONDENTS
                 (BY SRI. ARUN L. NEELOPANT, ADVOCATE FOR R1;
                 SRI. V. S. KALASURMATH, AGA FOR R2 AND R3)
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                                   MFA No. 100836 of 2018
                               C/W MFA No. 100834 of 2018
                                   MFA No. 100835 of 2018
 HC-KAR



     THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54(1) OF LAND ACQUISITION ACT, PRAYING TO SET ASIDE
THE JUDGMENT AND AWARD DATED 23.03.2017 PASSED BY THE
COURT OF THE IIND ADDITIONAL SENIOR CIVIL JUDGE, DHARWAD,
IN L.A.C. NO.159/2011 AND CONSEQUENTLY REJECT THE
REFERENCE PETITION, IN THE INTEREST OF JUSTICE.

IN M.F.A. NO. 100834 OF 2018

BETWEEN:

THE DEPUTY CHIEF ENGINEER,
CONSTRUCTION (CENTRAL),
SOUTH WESTERN RAILWAY, KESHWAPUR,
HUBBALLI-580020, DIST:DHARWAD.
                                               -     APPELLANT
(BY SRI. MALLIKARJUN S. HIREMATH, ADVOCATE)

AND:

1.   THE PRESIDENT.
     AROGYA NAGAR GRUHA NIRMAAN,
     SAHAKARI SANGH (REGD), DHARWAD-580007.

2.   THE ASSISTANT COMMISSIONER.
     AND LAND ACQUISITION OFFICER,
     DHARWAD-580001.

3.   THE PRINCIPAL SECRETARY,
     REVENUE DEPARTMENT, M. S. BUILDING,
     BENGALURU-560001.
                                          -        RESPONDENTS
(BY SRI. ARUN L. NEELOPANT, ADVOCATE FOR R1;
SRI. V. S. KALASURMATH, AGA FOR R2 AND R3)

      THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54(1) OF LAND ACQUISITION ACT, PRAYING TO SET ASIDE
THE JUDGMENT AND AWARD DATED 23.03.2017 PASSED BY THE
COURT OF THE IIND ADDITIONAL SENIOR CIVIL JUDGE, DHARWAD,
IN L.A.C. NO.07/2013 AND CONSEQUENTLY REJECT THE REFERENCE
PETITION, IN THE INTEREST OF JUSTICE.
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                                   MFA No. 100836 of 2018
                               C/W MFA No. 100834 of 2018
                                   MFA No. 100835 of 2018
 HC-KAR



IN M.F.A. NO. 100835 OF 2018

BETWEEN:

THE DEPUTY CHIEF ENGINEER,
CONSTRUCTION (CENTRAL),
SOUTH WESTERN RAILWAY,
KESHWAPUR, HUBBALLI-580020,
DIST:DHARWAD.
                                                 ...APPELLANT
(BY SRI. MALLIKARJUN S. HIREMATH, ADVOCATE)

AND:

1.   THE PRESIDENT.
     AROGYA NAGAR GRUHA NIRMAAN,
     SAHAKARI SANGH (REGD), DHARWAD-580007.

2.   THE ASSISTANT COMMISSIONER.
     AND LAND ACQUISITION OFFICER,
     DHARWAD-580001.

3.   THE PRINCIPAL SECRETARY,
     REVENUE DEPARTMENT, M. S. BUILDING,
     BENGALURU-560001.
                                          -    RESPONDENTS
(BY SRI. ARUN L. NEELOPANT, ADVOCATE FOR R1;
SRI. V. S. KALASURMATH, AGA FOR R2 AND R3)

      THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54(1) OF LAND ACQUISITION ACT, PRAYING TO SET ASIDE
THE JUDGMENT AND AWARD DATED 23.03.2017 PASSED BY THE
COURT OF THE IIND ADDITIONAL SENIOR CIVIL JUDGE, DHARWAD,
IN L.A.C. NO.09/2013 AND CONSEQUENTLY REJECT THE REFERENCE
PETITION, IN THE INTEREST OF JUSTICE.

    THESE MISCELLANEOUS FIRST APPEALS, COMING ON FOR
ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS
UNDER:

CORAM:    THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV
          AND
          THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL
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                                   MFA No. 100836 of 2018
                               C/W MFA No. 100834 of 2018
                                   MFA No. 100835 of 2018
HC-KAR




                    ORAL JUDGMENT

(PER: THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL)

These appeals are filed by the appellant-beneficiary

of the acquisition, i.e., The Deputy Chief Engineer,

Construction (Central), South Western Railway, Hubballi,

challenging the judgment and award dated 23.03.2017

passed in L.A.C. No. 159/2011, L.A.C. No. 07/2013 and

L.A.C. No. 09/2013 respectively by the learned II Addl.

Senior Civil Judge, Dharwad.

2. We have heard Sri Mallikarjun S. Hiremath, learned

counsel appearing for the appellant, Sri Arun L. Neelopant,

learned counsel for respondent No.1 and Sri V.S.

Kalasurmath, learned counsel for respondents No.2 and 3

and perused the records.

3. Learned counsel for the appellant submits that the

appeal in M.F.A. No. 101329/2018 filed by the appellant-

beneficiary was partly allowed by the learned Single Judge

vide order dated 18.11.2020 to the extent of correcting

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the legal error committed by the Reference Court in

awarding additional 12% market value contrary to Sec.

23(1-A) of the Land Acquisition Act, 1894 (for short, the

'Act') and also interest at the rate of 9% and 15% contrary

to Sec. 34 of the Act. Hence he seeks to allow these

appeals in terms of the order of the learned Single Judge.

4. Per contra, learned counsel appearing for respondent

No.1-claimant supports the order of the Reference Court

and submits that if there is any error in the judgment, the

same will be looked into by the executing Court at the

time of execution. The appeals are devoid of merit and he

seeks to dismiss the appeals.

5. We have given our anxious consideration to the

submissions of both sides.

6. The operative portion of the order of the Reference

Court is as under:

"The Reference application filed U/s 18 of the L.A. Act is allowed in part.

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The claimant is entitled for compensation at the rate of Rs.7,27,095/- per gunta.

The claimant is entitled for 30% solatium on the above referred market value U/s 23(2) of the L.A. Act.

The claimant is entitled for additional amount at the rate of 12% p.a. on such market value from the date of 4(1) notification to till the date of award as per Sec. 23(1-A) of the L.A. Act.

The claimant is entitled for interest at the rate of 9% p.a. for the 1st year and thereafter at the rate of 15% p.a. on such enhanced amount of compensation from the date of 4(1) notification or from the date of taking possession of the acquired land whichever is earlier till the deposit of the compensation amount in the Court.

Amount paid already to be deducted and adjusted.

The respondents shall pay or deposit the above amount within three months from the date of this order."

7. The order of the Reference Court makes it clear that

it had awarded 12% additional market value from the date

of preliminary notification issued u/S 4(1) of the Act till the

date of passing of the award and further held that the

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claimant is entitled for interest at the rate of 9% p.a. for

one year and thereafter at the rate of 15% p.a. on such

enhanced amount and compensation from the date of

notification u/S 4(1) of the Act or from the date of taking

possession of the acquired land, whichever is earlier, till

the date of deposit in the Court. The aforesaid order of

the Reference Court is contrary to Sec. 23(1-A) and

Section 34 of the Act.

8. The claimants would be entitled to additional market

value at 12% p.a. commencing from the date of

preliminary notification u/S 4(1) of the Act in respect of

the land in question till taking possession or passing of the

award, whichever is earlier. In the case on hand, taking of

possession is prior to passing of the award, i.e., date of

preliminary notification is 09.01.2009, date of taking

possession is 31.01.2010 and date of passing award is

11.06.2010. Hence, claimants would be entitled to

additional market value of 12% p.a. from the date of

preliminary notification till taking of the possession.

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Similarly, the claimants would be entitled to interest on

the compensation amount at the rate of 9% p.a. from the

date of taking possession till one year and thereafter 15%

on the compensation amount till the deposit is made.

9. The learned Single Judge taking note of the same

has passed the order at paragraph Nos.9 and 10 as under:

"With regard to the submissions made by the learned counsel for the beneficiary that the reference Court has granted additional market value at the rate of 12% contrary to section 23(1A) of the Land Acquisition Act and also interest contrary to section 34 of the Land Acquisition Act has to be accepted. The claimant is entitled for admissible statutory benefits and interest as provided under the Land Acquisition Act.

Accordingly, the appeal is allowed in part. The impugned judgment and award passed by the reference Court is modified. The market value of the land in question is fixed at Rs.7,27,095/- per gunta with all admissible statutory benefits and interests as provided under the provisions of the Land Acquisition Act."

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10. In view of the aforesaid order passed by the learned

Single Judge, the instant appeals are allowed in part

holding that the claimants are entitled to additional market

value of 12% p.a. as per Sec. 23(1-A) from 09.01.2009 to

31.01.2010 and interest at the rate of 9% from

31.01.2010 for a period of one year and 15% p.a. till the

deposit of compensation is made as per Sec. 34 of the Act.

Accordingly appeals are allowed in part.

Pending IAs also stand disposed of.

Sd/-

(S.SUNIL DUTT YADAV) JUDGE

Sd/-

(VIJAYKUMAR A.PATIL) JUDGE BVV /CT-AN