Citation : 2025 Latest Caselaw 11366 Kant
Judgement Date : 16 December, 2025
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W.A. No.148/2023
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 16TH DAY OF DECEMBER, 2025
PRESENT
THE HON'BLE MRS. JUSTICE ANU SIVARAMAN
AND
THE HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL
WRIT APPEAL NO.148/2023 (KLR-RES)
BETWEEN:
1. STATE OF KARNATAKA
REP. BY ITS PRINCIPAL SECRETARY
GOVERNMENT OF KARNATAKA
REVENUE DEPARTMENT
Digitally signed VIDHANA SOUDHA
by ARSHIFA DR. AMBEDKAR ROAD
BAHAR KHANAM BENGALURU-560001.
Location: High
Court Of 2. THE DEPUTY COMMISSIONER
Karnataka BENGALURU DISTRICT
BENGALURU-560009.
...APPELLANTS
(BY SMT. MAMATHA SHETTY, AGA)
AND:
SRI. T.N. HEMANTH
S/O LATE T.K. NAGARAJ
AGED ABOUT 60 YEARS
R/AT NO.303, ENCON YAGNALAYA
82, 6TH MAIN ROAD
JAYALAKSHMIPURAM
MYSURU-570012.
...RESPONDENT
(BY SRI. SAMMITH S, ADV., FOR C/R1)
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W.A. No.148/2023
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THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA
HIGH COURT ACT, PRAYING TO SET ASIDE THE ORDER DATED
19.09.2022 PASSED IN WP No.59394/2016 BY THE LEARNED
SINGLE JUDGE AND DISMISS THE SAID WP. ISSUE ANY
OTHER ORDER/DIRECTIONS AS THIS HON'BLE COURT DEEM
FIT IN THE FACTS AND CIRCUMSTANCES OF THE CASE, IN THE
INTEREST OF JUSTICE AND EQUITY.
THIS WRIT APPEAL HAVING BEEN HEARD AND RESERVED
ON 08.12.2025, COMING ON FOR PRONOUNCEMENT OF
JUDGMENT, THIS DAY VIJAYKUMAR A. PATIL J., DELIVERED
THE FOLLOWING:
CORAM: HON'BLE MRS. JUSTICE ANU SIVARAMAN
and
HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL
CAV JUDGMENT
(PER: HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL)
This intra Court appeal is filed under Section 4 of the
Karnataka High Court Act, 1961, challenging the order
dated 19.09.2022 passed by the learned Single Judge in
W.P.No.59394/2016 (KLR-RES).
2. The brief facts leading to filing of the appeal are
that the respondent is the owner of the land bearing
Sy.No.73/1 measuring 1 acre 20 guntas and 9.08 guntas
of 'A' kharab land situated at Doddakallasandra Village,
Uttarahalli Hobli, Bangalore South Taluk, Bangalore
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District. He sought conversion of 9.08 guntas of 'A'
kharab land. The appellant No.2 issued an endorsement
dated 01.02.2014 directing the respondent to pay
Rs.47,50,000/- i.e. the market value of 9.08 guntas of 'A'
kharab land. The respondent paid the said amount and
conversion order was issued which was later challenged
and a refund was sought. The learned Single Judge, after
considering the material or record directed the appellant
No.2 to refund the amount. Being aggrieved, the State is
in appeal.
3. Smt.Mamatha Shetty, learned Additional
Government Advocate appearing for the appellants
submits that the conversion sought by the respondent is
for 9½ guntas of 'A' kharab land and the State
Government is the owner of the said land. Hence, the
respondent is liable to pay the market value of the said
land as he would be using the said land as the owner. It is
submitted that the demand by the appellant No.2 to pay
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the market value of the 'A' kharab land is pursuant to the
circular dated 16.09.1994 at Annexure-R1 and the
Government order dated 16.05.2018, wherein the
appellant No.1 had issued directions and guidelines to all
the Deputy Commissioners to collect the market value of
the kharab land, collect the conversion fees and
thereafter, consider the application for conversion.
However, this aspect has not been appreciated by the
learned Single Judge in its proper perspective. It is
further submitted that the respondent has agreed and paid
the market value of the kharab land and seeking refund of
the same after the conversion order has been passed is
impermissible as is evident from the letter dated
02.02.2013 at Annexure-R8. Hence, she seeks to allow
the appeal.
4. Per contra, Sri.K.N.Phaneendra, learned Senior
counsel appearing for Sri.Sammith S., learned counsel for
the respondent No.1 supports the impugned order and
submits that the learned Single Judge, considering the law
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laid down by this Court has recorded a clear finding that
the appellant No.2 cannot collect the market value of the
land for 'A' kharab land and directed to refund the amount.
It is submitted that the 'A' kharab land is an unarable land
that goes along with the cultivable land and for
conversion, the Authorities are entitled to collect only
conversion charges for 'A' kharab land and not the market
price. It is further submitted that if the kharab is 'B' phut
kharab, then the State is entitled to collect the market
price of 'B' phut kharab land and also the conversion fees
if the application is filed for conversion. In support of his
contentions, he placed reliance on the following
judgments:
1. P.BHIMACHAR Vs. STATE OF MYSORE AND ORS.1
2. STATE OF KARNATAKA & OTHERS Vs. ISTAK AHMAD MOHAMMAD SAHEB AND OTHERS2
3. L.A.KRISHNAPPA Vs. THE STATE OF KARNATAKA AND OTHERS3
1966 (2) Mys LJ 184
2015 SCC Online Kar 8640
2009 SCC Online Kar 38
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4. THE GOVERNMENT OF KARNATAKA AND OTHERS Vs. SMT.G.ANURADHA4
5. THE STATE OF KARNATAKA AND OTHERS Vs. L.A.KRISHNAPPA5
Hence, he seeks to dismiss the appeal.
5. We have heard the arguments of the learned
Additional Government Advocate for the appellants, the
learned Senior counsel for the respondent, meticulously
perused the material available on record and the decisions
relied. We have given our anxious consideration to the
submissions made on both the sides.
6. The writ petition was filed by the respondent
seeking prayer to issue a writ in the nature of mandamus
to the appellant No.2 to refund a sum of Rs.47,50,000/-
collected for conversion of land in Sy.No.73/1 measuring
9.08 guntas of 'A' kharab land situated at
Doddakallasandra Village, Uttarahalli Hobli, Bangalore
South Taluk, on the ground that this Court in the case of
W.A.No.3524 of 2009 dtd 26.07.2010
W.A.No.2274 of 2009 dtd 28.07.2010
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L.A.KRISHNAPPA, referred supra has held that there
cannot be any demand for payment of market price for
phut 'A' kharab land where a conversion of land is sought
from agricultural to non-agricultural purpose. It is not in
dispute that the respondent is the owner of the land
bearing Sy.No.73/1 measuring 1 acre 20 guntas and 9.08
guntas of 'A' kharab land situated at Doddakallasandra
Village, Uttarahalli Hobli, Bangalore South Taluk,
Bangalore Distrist. The respondent sought conversion of
9.08 guntas of 'A' kharab land. The appellant No.2 issued
an endorsement dated 01.02.2014 directing the
respondent to pay Rs.47,50,000/- i.e. the market value of
9.08 guntas of 'A' kharab land which was paid and the
conversion order was issued. The respondent sought a
refund of the amount paid towards the market value and
sought for a writ of mandamus to the said effect.
7. It would be useful to refer to the decision of this
Court in the case of L.A.KRISHNAPPA referred supra.
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Paragraphs 4, 5 and 6 of the said judgment are extracted
below for ready reference:
"4. The counsel for the petitioner would submit that the relevant provisions under the Land Revenue Rules, 1966 and the provisions of the Land Revenue Act, 1964 would be Rule 21, which provides for classification of lands. Sub-Rule (2) of Rule 21 reads as follows:--
"Rule 21. Classification:--
(1) .................................................... (2) During the process of classification land included as. unarable shall be treated as "Pot Kharab" Pot Kharab lands may be classified as follows:--
(a) That which is classified as unfit for agriculture at the time of survey including the farm building or threshing floors of the holder.
(b) That which is not assessed because, (i) it is reserved or assigned for public purpose; (ii) it is occupied by a road or recognized footpath or by a tank or stream used by persons other than the holders for irrigation, drinking or domestic purposes (iii) used as burial ground or cremation ground; (iv) assigned for village potteries."
It is stated that at the time of survey and settlement of land records, the Pot Kharab portion of the land in the survey number was so classified as unarable under Rule 21(2)(a) and this is how it has been referred to in the RTC extracts, which is at Annexure-" A" to the petition The counsel would then draw attention of this Court to Rule 107 of the Rules, which is extracted herein for ready reference:--
"Rule 107. Levy of fine for conversion of agricultural and for non-agricultural use:-- The amount of fine which may be levied under sub-
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Section (7) of Section 95 shall be at the rates specified in the table below, namely:--
Sl. Place Area Rate of fine No in Rs. Per square meter Residential 1 Bangalore Municipal Corporation 13-45 (Urban limits and all lands District) within a distance of 18 km from the corporation limits and other placesThe counsel would contend that it is therefore clear that the conversion and fine prescribed do not make any distinction between an arable portion of land and un anarable portion of land. The petitioner as an occupant of the land is entitled to all the benefits that arises out of the land. Section 2(14) of the Karnataka Land Revenue Act defines the word "Land" as including the benefits that arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth and also shares in, or charges on, the Revenue or rent of villages or other defined areas." This inclusive definition makes it clear that the petitioner is entitled to rights in the total extent of land without any reservation of any part being made in favour of the Government. The Kharab Portion as classified under Rule 21(2)(a) of the Karnataka Land Revenue Act is therefore a benefit arising out of the land in
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the occupation of the petitioner. Rule 107 relating to levy of fine of conversion of agricultural land does not make any distinction between arable and unarable portions of the land. In any event, it does not prescribe any amount of fine based on the market value of any portion of the land. Therefore, the demand by the second respondent for payment of the amount calculated on the kharab (a) portion of land is illegal and without authority of law. The counsel would raw the attention of the Court to the Circular clarifying this position as understood by the Government, as early as 8-12-1971, which is at Annexure-"C" and which is extracted herein for ready reference:--
"Pot Kharab lands defined under Rule 21(2)(a) are those classified as unfit for agricultural at the time of survey, including the Farm buildings or threshing floors of the holder. As clarified by the Law Department, all Pot Kharab lands which form part of a holding and which have not been reserved for Government or assigned for any public purpose or for any other purposes mentioned in Rule 21(2)(b) of the Mysore Land Revenue Rules, belong to the owner of the survey number and not Government. The question of any further disposal of such Pot Kharab lands does not therefore arise."
Further, the counsel would point out that in so far as a later Circular dated 16-9-1994, which is at Annexure -- "D" to the petition is concerned, the tenor of the Circular has expressed an apprehension that there has been loss to the Government Revenue
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for not charging conversion fine in respect of Kharab
(a) portion of the land and based on such apprehension, directions were issued to the Revenue Officers to impose land value on the Kharab Portion and also collect the conversion fine for the balance of the land. The demand for payment of the market value is traceable to this misinterpretation of the rule and the law in making illegal demand of the market value of the Pot Kharab portion of the land in the petitioner's occupation.' It is in this background that the present petition is sought to be filled.
The counsel would place reliance on the judments of this Court P. Bhimachar v. State of Mysore and Others [1966 (2) Mys. LJ 184] wherein a Division Bench of this Court has held that Pot Kharab portion of the land is included in the ownership of the occupant. A similar view is taken in Saudagar Rasoor Khan v. State of Mysore [AIR 1973 Karnataka 56] wherein it is held that Kharab land is so called because it is not cultivable and is a classification made for the purposes of revenue exemption. Rule 21(2)(a) is thus a provision relating to the exemption from the payment of Land Revenue and has no relevance for assuming that the Pot Kharab portion is land not included in the occupancy, and that it belongs to the Government. From this point of
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view also the demand made for the payment of the market value on the Pot Kharab is unauthorised.
5. While the Government Pleader on the other hand, would seek to justify the action of the State Government on the basis of the Circulars namely Circular No. RD 136 LGS 93, dated 16-9-1994 as well as the Circular No. RD 137 LQW 2001, dated 17-6- 2003 whereunder an opinion of the Law Department is expressed to the effect that kharab lands are Government lands and therefore, the question of acquiring those lands does not arise and hence, there is no scope for making any payments to the landlords in respect of Kharab land. Reliance is also placed on a Circular dated 12-5-2004 wherein it is clarified that if "A" Kharab land if granted by the competent authority, it would only then become part and parcel of Hiduvali land of the landlord. It is contended by the Government pleader that the ownership of "A" Kharab land always vests with the Government unless it is granted to the landowner by the competent authority. and therefore, would submit that the demand made is in order.
6. It is not in dispute that in the present circumstances, the demand made is in respect of Pot Kharab (a) land. As rightly pointed out by the learned counsel for the petitioner, there is no
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distinction made between an arable portion of land and an unarable portion of land under Rule 107-for purposes of levy of fine for conversion of land for non-agricultural use. The reliance sought to be placed by the state on the circulars which are mere clarifications based on the opinions expressed by its Law Department would not override the express provisions of the law, which have been referred to herein above. There is no indication that there is a distinction between an arable portion of land and unarable portion of land. The provisions of Section 95 relating to conversion of agricultural land for other purposes does not also make any such distinction. Hence, the State Government seeking to interpret the provisions in order to obtain higher revenue would not be tenable. It is only in respect of Pot Kharab (b) lands, it could be said that the State Government can claim the same as Government lands. In so far as Pot Kharab (a) lands are concerned, the Division Bench decisions referred to above is categorical on this aspect and that has attained finality. There is no other manner in which the provisions could be interpreted."
8. It would also be useful to refer to the decision
of this Court in the case of STATE OF KARNATAKA AND
OTHERS Vs. ISTAK AHMAD MOHAMMAD SAHEB AND
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OTHERS referred supra, wherein it was held in paragraph
12 as under:
"12. As can be seen, when unarable land is classified as 'Pot Kharab', meaning that it is not brought under cultivation and that no land revenue is paid in respect of such land any further classification in sub-Clause (a) of sub-Rule (2) of Rule 21 of the 1966 Rules, it is evident that if it is unarable and unfit for agriculture and may include farm buildings or threshing floors of the holder, it would form part of larger extent of land, held by the owner and would run with the land. No doubt, it would be unarable land and no land revenue is paid on the same, but ownership of the land would continue with the land owner. If it is classified as under sub-Clause (b) of sub-Rule (2) of Rule 21 of the 1966 Rules, it would be utilised for a public purpose and no individual would have any claim over the same and it would be used for purposes such as for road or footpath or a tank or a stream or burial ground or cremation ground or for village potteries."
9. This Court, in the case of the STATE OF
KARNATAKA AND OTHERS Vs. SMT.G.ANURADHA
referred supra had also considered the circular dated
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16.09.1994 of the State Government and granted the
relief to the petitioner.
10. The respondent admittedly sought for
conversion of 'A' kharab land to non-agricultural purposes
and paid the conversion fees. In view of the aforesaid
enunciation of the law laid down by this Court, the
demand for payment of market value by the appellant
No.2 is without any justification and also that it is based
on the circular which has been quashed by this Court. The
subsequent order is also based on the circular dated
16.09.1994. Hence, even under the said order, the
appellants cannot raise the demand for payment of market
value. It is noticed that the State Government has
brought an amendment to Rule 107-AA of the Karnataka
Land Revenue Rules, 1996. Admittedly the case on hand
is prior to the amendment. This Court in the aforesaid
decision has already taken a view that the phut 'A' kharab
land is an unarable land and the said classification is solely
for the revenue assessment of the said land. However,
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the ownership of such land would continue with the
landowner. Hence, the demand for market value of such
unarable land which is classified as a phut 'A' kharab land
which goes along the with arable land owned by the
respondent, is not justified. The learned Single Judge,
considering the aforesaid aspect has rightly allowed the
writ petition by directing the appellants to refund the
amount. The same does not call for any interference.
Accordingly, the appeal is rejected. The order of the
learned Single Judge shall be complied within six weeks
from today. Consequently, pending interlocutory
application, if any stands disposed of.
No order as to costs.
Sd/-
(ANU SIVARAMAN) JUDGE
Sd/-
(VIJAYKUMAR A. PATIL) JUDGE
RV/List No.: 5 Sl No.: 1
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