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The Special Land Acquisition Officer vs Kurubara Eranna S/O. Shri Nagadevappa
2025 Latest Caselaw 3339 Kant

Citation : 2025 Latest Caselaw 3339 Kant
Judgement Date : 13 August, 2025

Karnataka High Court

The Special Land Acquisition Officer vs Kurubara Eranna S/O. Shri Nagadevappa on 13 August, 2025

Author: S.Sunil Dutt Yadav
Bench: S.Sunil Dutt Yadav
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                                                         MFA No. 101519 of 2014
                                                     C/W MFA No. 101516 of 2014
                                                         MFA No. 101517 of 2014
                       HC-KAR                                     AND 4 OTHERS


                       IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

                                DATED THIS THE 13TH 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.101519 OF 2014 (LAC)
                                  C/W. M.F.A. NO.101516 OF 2014 (LAC)
                                     M.F.A. NO.101517 OF 2014 (LAC)
                                     M.F.A. NO.101518 OF 2014 (LAC)
                                  M.F.A. CROB NO.100035 OF 2015 (LAC)
                                  M.F.A. CROB NO.100036 OF 2015 (LAC)
                                  M.F.A. CROB NO.100037 OF 2015 (LAC)

                      IN MFA NO.101519/2014

                      BETWEEN

                      THE SPECIAL LAND ACQUISITION OFFICER,
                      KIADB, DHARWAD.
                                                                      ...APPELLANT
                      (BY SRI. G. I. GACHCHINAMATH, ADVOCATE)

                      AND
Digitally signed by
CHANDRASHEKAR
LAXMAN
KATTIMANI
Location: High
                      1.    N. V. GIRI BABU S/O. HANUMANTHA RAO,
Court of
Karnataka,
Dharwad Bench
                            R/O. MUNDARAGI VILLAGE,
                            TQ AND DIST. BELLARY,
                            SINCE DECEASED BY HIS LRS.

                      1A.   SUDHARANI W/O. LATE. N. V. GIRI BABU,
                            AGED ABOUT 45 YEARS, OCC: HOUSEHOLD WORK,
                            R/O. MUNDARAGI VILLAGE, TQ AND DIST. BELLARY.

                      1B.   SRI. RAKSHIT S/O. LATE N. V. GIRI BABU,
                            AGE 25 YEARS, OCC: AGRICULTURE,
                            R/O. MUNDARAGI VILLAGE, TQ AND DIST. BELLARY.
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                                       MFA No. 101519 of 2014
                                   C/W MFA No. 101516 of 2014
                                       MFA No. 101517 of 2014
HC-KAR                                          AND 4 OTHERS


1C.  SRI. SAISEETARAM S/O. LATE. N. V. GIRI BABU,
     AGE 22 YEARS, OCC: HOUSEHOLD WORK,
     R/O. MUNDARAGI VILLAGE, TQ AND DIST. BELLARY.
                                               ...RESPONDENTS
(BY SRI. R. H. ANGADI, ADVOCATE)


     THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54(1) OF THE LAND ACQUISITION ACT, PRAYING TO
ALLOW THE ABOVE MISCELLANEOUS FIRST APPEAL AND SET ASIDE
THE JUDGMENT AND AWARD DATED 26.04.2013 PASSED BY THE
COURT OF THE FIRST ADDITIONAL SENIOR CIVIL JUDGE, BELLARY
AT BELLARY, IN LAC NO.4/2010, AND CONSEQUENTLY REJECT THE
REFERENCE, IN THE INTEREST OF JUSTICE.

IN MFA NO.101516/2014

BETWEEN

THE SPECIAL LAND ACQUISITION OFFICER,
KIADB, DHARWAD.
                                                   ...APPELLANT
(BY SRI G. I. GACHCHINAMATH, ADVOCATE)

AND

V. BHOJARAJ S/O. V. GANGAMMA,
AGE: MAJOR, OCC: AGRICULTURIST,
R/O. MUNDARGI VILLAGE, TQ. & DIST: BELLARY.
                                                 ...RESPONDENT
(BY SRI. R. H. ANGADI, ADVOCATE)

     THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54(1) OF THE LAND ACQUISITION ACT, PRAYING TO
ALLOW THE ABOVE MISCELLANEOUS FIRST APPEAL AND SET ASIDE
THE JUDGMENT AND AWARD DATED 26.04.2013 PASSED BY THE
COURT OF THE FIRST ADDITIONAL SENIOR CIVIL JUDGE, BELLARY
AT BELLARY, IN LAC NO.5/2010, AND CONSEQUENTLY REJECT THE
REFERENCE, IN THE INTEREST OF JUSTICE.
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                                       MFA No. 101519 of 2014
                                   C/W MFA No. 101516 of 2014
                                       MFA No. 101517 of 2014
HC-KAR                                          AND 4 OTHERS



IN MFA NO.101517/2014

BETWEEN

THE SPECIAL LAND ACQUISITION OFFICER,
KIADB, DHARWAD.
                                                   ...APPELLANT
(BY SRI. G. I. GACHCHINAMATH, ADVOCATE)

AND

P. SURESH BABU S/O. LATE SRI. SATHYANARAYANA,
AGE: MAJOR, OCC: AGRICULTURIST,
R/O. MUNDARGI VILLAGE, TQ. & DIST: BELLARY.
                                                 ...RESPONDENT
(BY SRI. R. H. ANGADI, ADVOCATE)

     THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54(1) OF THE LAND ACQUISITION ACT, PRAYING TO
ALLOW THE ABOVE MISCELLANEOUS FIRST APPEAL AND SET ASIDE
THE JUDGMENT AND AWARD DATED 26.04.2013 PASSED BY THE
COURT OF THE FIRST ADDITIONAL SENIOR CIVIL JUDGE, BELLARY
AT BELLARY, IN LAC NO.2/2010, AND CONSEQUENTLY REJECT THE
REFERENCE, IN THE INTEREST OF JUSTICE.


IN MFA NO.101518 OF 2014

BETWEEN

THE SPECIAL LAND ACQUISITION OFFICER,
KIADB, DHARWAD.
                                                   ...APPELLANT
(BY SRI. G. I. GACHCHINAMATH, ADVOCATE)

AND

KURUBARA ERANNA S/O. SHRI. NAGADEVAPPA,
AGE: 68 YEARS, OCC: AGRICULTURE,
R/O. MUNDARGI VILLAGE, TQ. & DIST: BELLARY.
                                                 ...RESPONDENT
(BY SRI. R. H. ANGADI, ADVOCATE)
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                                       MFA No. 101519 of 2014
                                   C/W MFA No. 101516 of 2014
                                       MFA No. 101517 of 2014
HC-KAR                                          AND 4 OTHERS


     THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 54(1) OF THE LAND ACQUISITION ACT, PRAYING TO
ALLOW THE ABOVE MISCELLANEOUS FIRST APPEAL AND SET ASIDE
THE JUDGMENT AND AWARD DATED 26.04.2013 PASSED BY THE
COURT OF THE FIRST ADDITIONAL SENIOR CIVIL JUDGE, BELLARY
AT BELLARY, IN LAC NO.3/2010, AND CONSEQUENTLY REJECT THE
REFERENCE, IN THE INTEREST OF JUSTICE.

IN MFA CROB NO.100035/2015

BETWEEN

V. BHOJARAJ S/O. SMT. V. GANGAMMA,
AGED ABOUT 40 YEARS, OCC: AGRICULTURE,
R/O. MUNDARGI VILLAGE, TQ. & DIST: BALLARI.
                                              ...CROSS OBJECTOR
(BY SRI. R. H. ANGADI, ADVOCATE)

AND

THE LAND ACQUISITION OFFICER,
CUM ASSISTANT COMMISSIONER, BALLARI,
BALLARI REVENUE SUB DIVISION, BALLARI.
                                                  ...RESPONDENT
(SRI. G. I. GACHCHINAMATH, ADVOCATE)

      THIS MFA CROB FILED IN MFA NO.101516/2014 IS FILED
U/O.41 RULE 22 OF CPC, PRAYING TO ALLOW THE PETITION AND
ENHANCE THE COMPENSATION AMOUNT FROM RS.11,00,000/-
(ELEVEN LAKHS RUPEES) TO RS.15,10,000/- (FIFTEEN LAKH TEN
THOUSAND) PER ACRE WITH STATUTORY BENEFITS IN LAC
NO.5/2010 DATED 26.04.2013 BY THE 1ST ADDITIONAL SENIOR
CIVIL JUDGE, BELLARY AT BELLARY AND ETC.


IN MFA CROB NO 100036 OF 2015

BETWEEN

P. SURESH BABU
S/O. LATE SRI. SATHYANARAYANA,
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                                       MFA No. 101519 of 2014
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                                       MFA No. 101517 of 2014
HC-KAR                                          AND 4 OTHERS




AGED ABOUT 45 YEARS, OCC: AGRICULTURE,
R/O. MUNDARGI VILLAGE, TQ. & DIST: BALLARI.
                                              ...CROSS OBJECTOR
(BY SRI. R. H. ANGADI, ADVOCATE)

AND

THE SPECIAL LAND ACQUISITION OFFICER,
KIADB, P.B. ROAD, DHARWAD-580001.
                                                   RESPONDENT
(SRI. G. I. GACHCHINAMATH, ADVOCATE)

      THIS MFA CROB FILED IN MFA NO.101517/2014 IS FILED
U/O.41 RULE 22 OF CPC, PRAYING TO ALLOW THE PETITION AND
ENHANCE THE COMPENSATION AMOUNT FROM RS.11,00,000/-
(ELEVEN LAKHS RUPEES) TO RS.15,10,000/- (FIFTEEN LAKH TEN
THOUSAND) PER ACRE WITH STATUTORY BENEFITS, IN LAC
NO.2/2010 DATED 26.04.2013 BY THE 1ST ADDITIONAL SENIOR
CIVIL JUDGE, BELLARY AT BELLARY AND ETC.

IN MFA CROB NO.100037/2015
BETWEEN

KURUBARA ERANNA S/O. NAGADEWAPPA,
AGED ABOUT 50 YEARS, OCC: AGRICULTURE,
R/O. MUNDARGI VILLAGE, TQ. & DIST: BELLARY.
                                           ...CROSS OBJECTOR
(BY SRI. R. H. ANGADI, ADVOCATE)
AND

THE SPECIAL LAND ACQUISITION OFFICER,
ASSISTANT COMMISSIONER, BELLARY
REVENUE SUB DIVISION, BELLARY-583101
                                                   RESPONDENT
(SRI. G. I. GACHCHINAMATH, ADVOCATE)

     THIS MFA CROB FILED IN MFA NO.101518/2014 IS FILED
U/O.41 RULE 22 OF CPC, PRAYING TO ALLOW THE PETITION AND
ENHANCE THE COMPENSATION AMOUNT FROM RS.11,00,000/-
(ELEVEN LAKHS RUPEES) TO RS.15,10,000/- (FIFTEEN LAKH TEN
THOUSAND) PER ACRE WITH STATUTORY BENEFITS.
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                                     MFA No. 101519 of 2014
                                 C/W MFA No. 101516 of 2014
                                     MFA No. 101517 of 2014
HC-KAR                                        AND 4 OTHERS



    THESE APPEALS AND CROB PETITIONS HAVING BEEN HEARD
AND RESERVED ON 05.08.2025 AND COMING ON FOR
PRONOUNCEMENT OF JUDGMENT, THIS DAY, THE COURT
PRONOUNCED THE FOLLOWING:

CORAM:    THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV
           AND
           THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL


                       CAV JUDGMENT

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

These appeals and cross objections are preferred by

the KIADB and the claimants respectively being aggrieved

by the common judgment and award dated 26.04.2013

passed by the I Additional Senior Civil Judge, Bellary

(hereinafter referred to as the 'Reference Court' for short).

The particulars are as under:

Sl.No. LAC.No. MFA FILED CROB FILED BY BY KIADB CLAIMANTS

1. 4/2010 101519/2014 ------

2. The parties henceforth are referred to as per

their ranking before the Reference Court for the purpose of

convenience. The land loosers are referred to the

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HC-KAR AND 4 OTHERS

claimants and the beneficiary from acquisition is referred

to as KIADB.

3. Brief facts leading to filing of these appeals and

cross objections are that the State Government issued

preliminary notification on 24.04.2005 to acquire various

extents of lands including the lands of the claimants for

establishment of industrial area. The Land Acquisition

Officer passed an award determining the market value of

the lands at Rs.41,300/- per acre. The Reference Court

enhanced the same under the impugned judgment dated

26.04.2013 at Rs.11,00,000/- per acre. Being aggrieved,

the KIADB has filed these appeals and the claimants have

filed the cross objections.

4. Sri.R.H.Angadi, learned counsel appearing for

the claimants submits that the Reference Court committed

grave error in determining the market value of the lands in

question at Rs.11,00,000/- per acre by ignoring the oral

and documentary evidence on record. It is submitted that

the location of the acquired lands is within the developed

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HC-KAR AND 4 OTHERS

area as is evident from the Court Commissioner's report at

Ex.C.1 and the sketch at Ex.C.2. However, the Reference

Court has not considered the said evidence. It is further

submitted that the acquired lands are situated next to the

existing industrial area formed by the KIADB and the

acquired lands are within 1 Km from Bellary - Bangalore

Highway. The Reference Court ignored Ex.P.21 to Ex.P.25

the Yield Certificates issued by the Horticulture

Department which indicate that the crops grown in the

acquired lands are commercial crops having high yield and

the trees standing in the acquired lands are the fruit

bearing trees and the Reference Court ought to have

considered the same and awarded higher compensation. It

is also submitted that if the evidence on record is

considered, the claimants are entitled at least Rs.14 to

Rs.15 Lakhs per acre as compensation with all statutory

benefits. Hence, he seeks to allow the appeals filed by the

claimants.

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5. Sri.Gurudev I.Gachchinamath, learned counsel

appearing for the KIADB submits that the claimants have

failed to prove the correct market value of the acquired

lands before the Reference Court. It is submitted that the

Reference Court committed an error in considering Ex.P.1-

the Sale Deed of Bellary village as the acquired lands are

from Mundargi village. It is submitted that the Reference

Court has not assigned any reasons in the impugned

judgment to arrive at the conclusion and for enhancement

of the compensation to Rs.11,00,000/- per acre. It is

submitted that the determination of market value by the

Land Acquisition Officer is based on the nature of lands

acquired and its market value as on the date of

preliminary notification and the same is required to be

confirmed by setting aside the impugned judgment and

award of the Reference Court. In support of his

contention, he placed reliance on the following judgments

of the Hon'ble Apex Court

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*THE GENERAL MANAGER, OIL AND NATURAL GAS LIMITED V/S RAMESHBHAI JIVANBHAI PATEL AND OTHERS1

*MAYADEVI(DEAD) THROUGH LEGAL REPRESENTATIVES AND OTHERS V/S STATE OF HARYANA AND ANOTHER2

*BIJENDER AND ORS. V/S STATE OF HARYANA AND OTHERS3

*SPECIAL DEPUTY COLLECTOR AND ORS. V/S KURRA SAMBASIVA RAO AND OTHERS4

6. We have heard the submissions of the learned

counsel for the claimants, learned counsel for the KIADB

and perused the material on record including the trial

Court records. We have given our anxious consideration to

the submissions advanced. The only point that arises for

consideration in these appeals and cross objections is

whether the market value determined by the Reference

MANU/SC/7896/2008

(2018) 2 SCC 474

MANU/SC/1362/2017

MANU/SC/0690/1997

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    HC-KAR                                                     AND 4 OTHERS


Court         under         the        common         impugned       judgment    is

sustainable            in    law        or     whether       calls    for   further

enhancement?


7. The answer to the above point is 'affirmative'

and 'negative' for the following reasons:

(a) Before adverting to the issue involved in these

matters, we go through the law laid down by the Hon'ble

Supreme Court in the case of CHIMANLAL

HARGOVINDDAS v. SPECIAL LAND ACQUISITION

OFFICER POONA AND ANOTHER5 which has also been

followed by this Court in MFA.No.100255/2016 which is

extracted as under:

"4. The following factors must be etched on the mental screen:

(1) A reference under section 18 of the Land Acquisition Act is not an appeal against the award and the Court cannot take into account the material relied upon by the Land Acquisition officer in his Award unless the same material is produced and proved before the Court.

1. By Certificate under Article 133(1)(a) of the Constitution of India as it existed at the material time.

(2) So also the Award of the Land Acquisition officer is not to be treated as a judgment of the trial Court open or

AIR 1988 SC 1652

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exposed to challenge before the Court hearing the Reference. It is merely an offer made by the Land Acquisition officer and the material utilised by him for making his valuation cannot be utilised by the Court unless produced and proved before it. It is not the function of the Court to suit in appeal against the Award, approve or disapprove its reasoning, or correct its error or affirm, modify or reverse the conclusion reached by the Land Acquisition officer, as if it were an appellate court.

(3) The Court has to treat the reference as an original proceeding before it and determine the market value afresh on the basis of the material produced before it.

(4) The claimant is in the position of a plaintiff who has to show that the price offered for his land in the award is Inadequate on the basis of the materials produced in the Court. Of course the materials placed and proved by the other side can also be taken into account for this purpose.

(5) The market value of land under acquisition has to be determined as on the crucial date of publication of the notification under sec. 4 of the Land Acquisition Act (dates of Notifications under secs. 6 and 9 are irrelevant).

(6) The determination has to be made standing on the date line of valuation (date of publication of notification under Section 4) as if the valuer is a hypothetical purchaser willing to purchase land from the open market and is prepared to pay a reasonable price as on that day. It has also to be assumed that the vendor is willing to sell the land at a reasonable price.

(7) In doing so by the instances method, the Court has to correlate the market value reflected in the most comparable Instance which provides the index of market value.

(8) only genuine instances have to be taken into account. (Some times instances are rigged up in anticipation of Acquisition of land).

(9) Even post notification instances can be taken into account (1) if they are very proximate, (2) genuine and (3) the acquisition itself has not motivated the purchaser to pay a higher price on account of the resultant improvement In development prospects.

(10) The most comparable instances out of the genuine instances have to be identified on the following considerations:

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(i) proximity from time angle,

(ii) proximity from situation angle.

(11) Having identified the instances which provide the index of market value the price reflected therein may be taken as the norm and the market value of the land under acquisition may be deduced by making suitable adjustments for the plus and minus factors vis-a-vis land under acquisition by placing the two in juxtaposition.

(12) A balance-sheet of plus and minus factors may be drawn for this purpose and the relevant factors may be evaluated in terms of price variation as a prudent purchaser would do.

(13) The market value of the land under acquisition has there after to be deduced by loading the price reflected in the instance taken as norm for plus factors and unloading it for minus factors

(14) The exercise indicated in clauses (11) to (13) has to be undertaken in a common sense manner as a prudent man of the world of business would do. We may illustrate some such illustrative (not exhaustive) factors:

               Plus factors                       Minus factors
           1. smallness of size.           1. largeness of area.
           2. proximity to a road.         2. situation in the interior at
                                               a distances from the Road.
           3. frontage on a road.          3. narrow strip of land with
                                               very small frontage
                                               compared to death.
          4. nearness to developed         4. lower level requiring
             area.                            the depressed portion
                                               to be filled up.
           5. regular shape.               5. remoteness from
                                               developed locality.
          6. level vis-a-vis land under    6. some special
              acquisition.                     disadvantageous factor
                                               which would deter a
                                               purchaser.
          7. special value for an owner
             of an adjoining property to
             whom it may have some
             very special advantage.

15) The evaluation of these factors of course depends on the facts of each case. There cannot be any hard and fast or rigid rule. Common sense is the best and most reliable guide. For instance, take the factor regarding the size. A building plot of

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land say 500 to 1000 sq.yds. cannot be compared with a large tract or block of land of say 1000 sq. yds or more. Firstly while a smaller plot is within the reach of many, a large block of land will have to be developed by preparing a lay out, carving out roads, leaving open space, plotting out smaller plots, waiting for purchasers (meanwhile the invested money will be blocked up) and the hazards of an entrepreneur. The factor can be discounted by making a deduction by way of an allowance at an appropriate rate ranging approx. between 20% to 50% to account for land required to be set apart for carving out lands and plotting out small plots. The discounting will to some extent also depend on whether it is a rural area or urban area, whether building activity is picking up, and whether waiting period during which the capital of the entrepreneur would be looked up, will be longer or shorter and the attendant hazards.

(16) Every case must be dealt with on its own facts pattern bearing in mind all these factors as a prudent purchaser of land in which position the Judge must place himself.

(17) These are general guidelines to be applied with understanding informed with common sense."

The Hon'ble Supreme Court in the case of THE

GENERAL MANAGER, OIL AND NATURAL GAS LIMITED

referred supra held that the reference to the future sale

transaction, subsequent to the acquisition should be

ignored for determining the market value of the acquired

lands. Similar view is taken by the Hon'ble Supreme

Court in the case of MAYA DEVI referred supra. In the

case of BIJENDER AND ORS. referred supra the Hon'ble

Supreme Court held that the transaction relating to

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acquired land of recent dates or in the neighbourhood

lands that possessed of similar potentiality or fertility or

other advantages features are considered to be relevant

piece of evidence. In the case of SPECIAL DEPUTY

COLLECTOR AND ORS. referred supra the Hon'ble

Supreme Court held that the burden of proof is on the

land owner to prove the market value of the land in

question. Further, the Court should sit in the arm chair of

prudent willing purchaser in the open market and see

whether he would be willing to offer the same price as is

proposed to be fixed by the land acquisition officer as a

market value for the same or similar land possessed of

all the advantages or features.

(b) Keeping in mind the ratio laid down by the

Hon'ble Supreme Court in the cases referred supra now

we deal with the case on hand. The State Government

issued preliminary notification under Section 28(1) of the

Karnataka Industrial Areas Development Act, 1966

(hereinafter referred to as the 'KIAD Act' for short) on

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24.04.2005 to acquire various extents of lands including

the lands of the claimants for establishment of industrial

area. The final notification under Section 28(4) of the

KIAD Act came to issued on 28.12.2005. The Land

Acquisition Officer passed the award on 30.04.2007 by

determining the market value of the lands in question at

Rs.41,300/- per acre. The land losers sought reference

and the Reference Court under the impugned common

judgment and award enhanced the market value of the

lands in question at Rs.11,00,000/- per acre.

(c) The particulars of the lands involved in these

appeals are as under:

LAC Claimant (s) Survey Extent in MFA No. No. No. Acres 2/2010 P. Suresh Babu 36 & 98 3.70 & 6.36 101517/2014

(d) The parties adduced evidence before the

Reference Court. The claimants examined PW.1 & PW.2

and got marked Exs.P.1 to P.26. The respondent

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examined RW.1 and got marked Exs.R.1 to R.5. The

Court Commissioner was examined as CW.1 and got

marked Exs.C.1 and C.2. The Reference Court mainly

placing reliance on Ex.P.1 - the Sale Deed, enhanced the

compensation to Rs.11,00,000/- per acre. The Reference

Court though made a reference to Exs.P.1 to P.26

considered Ex.P.1 as the basis to determine the market

value of the lands in question. The Reference Court

taking note of Exs.P.21 to P.25 held that the claimants

used to grow horticulture crops and used to generate

income ranging from Rs.5,00,000/- to Rs.6,00,000/-

annually. However, those exhibits were not taken into

consideration while determining the market value of the

lands in question.

(e) The oral evidence of PW.1 and PW.2 indicates

that the subject lands were acquired for formation of

industrial area by the KIADB and before the acquisition,

they used to grow horticulture crops those lands and it

was claimed that they used to generate income of

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Rs.5,00,000/- to Rs.6,00,000/- annually. The evidence of

the aforesaid witnesses indicates that they have planted

pomegranate trees, drumstick trees, anjur trees,

tamarind tree, coconut tree, neem tree and based on

that, they tried to prove the income arising from the

acquired lands. However, those evidences are self

serving statements of the claimants and the Reference

Court has rightly not placed any reliance on their oral

testimonies. Ex.P.21 is the Crop Yield Certificate dated

16.01.2013 issued by the Senior Assistant Director,

Horticulture Department, Bellary which indicates that,

different fruit bearing trees would start yielding fruits

from two to three years, the coconut trees would start

yielding from four to seven years, drumstick trees would

start yielding from eight months of their plantation and

the said document does not indicate that a particular

number of trees are planted in their lands and the

approximate income for such trees. The certificate at

Ex.P.21 is the general statement of the Officer of the

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Horticulture Department to indicate as to when the

pomegranate trees, anjur trees, coconut trees and

drumstick trees would start the yield from the date of

plantation and their life span. The said exhibit cannot be

the basis to determine the market value of the lands in

question. Ex.P.22 is the photograph showing the

existence of fruit bearing trees. However, the photograph

at Ex.P.22 cannot be the basis to come to a conclusion

that the claimants were earning a particular amount per

year to determine the market value of the lands in

question. Exs.P.23 to P.25 are the valuation certificates

in respect of Survey Nos.96, 97/A and 97/B. The said

valuation certificates in respect of Survey No.96 indicate

the valuation of the trees at Rs.1,46,844/-, in respect of

the Survey No.97/B at Rs.9,78,440/- and in respect of

Survey No.97/A at Rs.7,27,194/-. The aforesaid exhibits

cannot be fully relied as the claimants have not examined

the authors of Exs.P.21, 23 to P.25. And these exhibits

cannot be the basis to determine the market value of the

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lands in question in the absence of better particulars.

Exs.P.9 to P.19 are the judgments of the Reference

Courts and this Court. A perusal of the aforesaid exhibits

would indicate that the acquisition in the aforesaid cases

is of the year 1989 for the purpose of formation of layout

by the Bellary Urban Development Authority. In our

considered view, the preliminary notification in the

aforesaid exhibits was issued on 24.08.1989 and in the

instant case the preliminary notification was issued on

24.04.2005. Hence, Exs.P.9 to P.19 cannot be basis to

determine the market value of the lands in question.

(f) The claimants produced Exs.P.1 to P.9 - the

certified copies of the sale deed of Bellary village of

different dates. The particulars of Exs.P.1 to P.7 are

extracted herein below:

P-1 Survey No. 10 1,31,000/- 13,10,000/-

    Sale Deed    280/H2, in                                   (Per Acre)
    Dated        Ballari Village
    19.01.2005
    (Pg.91)
    P-2          Survey No.        16       Guideline Value   Guideline Value
    Sale Deed    733//B, part               Rs. 1,26,000/-    Rs. 7,86,700/-
                                    - 21 -
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HC-KAR                                               AND 4 OTHERS


    Dated        in Ballari
    18.02.2005   Village                          99,000/-           6,18,750/-
    (Pg.93)                                 (Sale consideration)   (Per acre)
    P-3          Survey No.        25       3,28,000/-           13,12,000/-
    Sale Deed    235/B/1a1b                 (Sale consideration) (Per acre)
    Dated        in Ballari
    21.02.2005   Village
    (Pg.98)
    P-4          Survey No.        10       96,000/-               9,60,000/-
    Sale Deed    982B/3/a, in               (Sale consideration)   (Per acre)
    Dated        Ballari Village
    07.02.2003
    (Pg.101)
    P-5          Survey No.        11       1,25,000/-             11,36,400/-
    Sale Deed    929/A1e piki               (Sale consideration)   (Per acre)
    Dated        in Ballari
    27.03.2003   Village
    (Pg.104)
    P-6          Survey No.        09       1,04,000/-             11,55,500/-
    Sale Deed    929/A1/F, in               (Sale consideration)   (Per acre)
    Dated        Ballari Village
    13.05.2003
    (Pg.108)
    P-7          Survey No.        03       33,000/-               11,00,000/-
    Sale Deed    821/A/2, piki              (Sale consideration)   (Per acre)
    Dated        in Ballari
    16.05.2003   Village
    (Pg.110)




Exs.P.1 to P.7 are the sale exemplars which can be

considered to determine correct market value of the

acquired lands as no other legally acceptable evidence is

available on record. We are of the view that there is no

evidence of any contemporaneous sale transactions or

acquisitions of comparable lands in the neighbourhood

and placing reliance on Exs.P1 to P7 is reasonably safe.

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HC-KAR AND 4 OTHERS

Admittedly, the determination of market value should be

as on 24.04.2005 i.e., the date of issuance of preliminary

notification. Ex.P.1 - sale deed dated 19.01.2005 is of

the Bellary village and not of the Mundargi village and

Exs.P.2 to P.9 are also of the Bellary village. The

aforesaid sale transactions are on different dates from

13.05.2003 to 19.01.2005. The extent in the aforesaid

sale deeds is a small extent of land as can be seen from

the schedule to the aforesaid sale deeds. The sale

consideration in Exs.P.1 to P.7 is ranging from

Rs.6,18,750/- to Rs.13,12,000/-. Though the sale deeds

at Exs.P.1 to P.7 are not of the same village, the

covenant of the sale deeds indicates the nature of lands

covered in the said sale deed which are agricultural lands

having irrigation facility and the acquired lands are also

agricultural lands having irrigation facility. The oral

evidence of CW.1 and his report at Ex.C.1 indicate that

the Court Commissioner has inspected the land and as

per his report it demonstrates that, surrounding lands to

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HC-KAR AND 4 OTHERS

the lands in question have been developed. The report of

the Court Commissioner indicates that at the Southern

portion of the acquired lands, the Housing Board has

acquired the lands for formation of layouts and within the

distance of 1 km of the acquired lands, there exists

Bellary - Bangalore Highway, electric transmission

station is at the distance of 1 ½ km, Ring road is at the

distance of 1 km and Mundargi village limits is within 1

km, within the distance of 3 ½ km there exists

Government Medical College and within the distance of 5

kms Krishnadevaraya University has come up. The Court

Commissioner is of the opinion that the lands are worth

more than Rs.50,00,000/-. Admittedly, the report is

dated 19.06.2012 which is after a period of 7 years of the

issuance of preliminary notification. Hence, the report

with regard to the development of the surrounding areas

of the acquired lands cannot be taken into account to

come to the conclusion that at the time of acquisition,

the lands in question were having a potential to consider

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HC-KAR                                           AND 4 OTHERS


as    developed    lands.     The       report    of        the        Court

Commissioner      is    not   supported      with      any        of        the

documentary evidence to substantiate the assertion

made in the report at Ex.C.1.

(g) We have meticulously gone through Exs.P.1 to

P.7, the sale deeds referred supra wherein, the various

extents of lands were alienated from 2003 to 2005 and

the sale consideration shown in the aforesaid exhibits is

ranging from Rs.9,60,000/- to Rs.13,12,000/-. Taking

note of the sale examples as per Exs.P.1 to P.7, we are

of the considered view that the Reference Court though

not assigned the detailed reasons to arrive at a

conclusion and to re-determine the compensation at

Rs.11,00,000/- per acre, we are of the view that the

determination of the market value arrived by the

Reference Court at Rs.11,00,000/- per acre is just and

proper and does not call for any modification. For the

aforementioned reasons, we proceed to pass the

following:

- 25 -

                                   NC: 2025:KHC-D:10160-DB



 HC-KAR                                     AND 4 OTHERS




                           ORDER


MFA.Nos.101519, 101516, 101517 and 101518 of 2014 and MFA.CROB.Nos.100035, 100036 and 100037 of 2015 are dismissed.

Sd/-

(S.SUNIL DUTT YADAV) JUDGE

Sd/-

(VIJAYKUMAR A.PATIL) JUDGE

RH CT-AN

 
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