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Karnataka High Court
Karnataka Neeravari Nigam Ltd vs The Special Land Acquisition Officer on 17 February, 2026
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MFA No.102517 of 2016
IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
DATED THIS THE 17TH DAY OF FEBRUARY, 2026
BEFORE
THE HON'BLE DR. JUSTICE K.MANMADHA RAO
MISCELLANEOUS FIRST APPEAL NO.102517 OF 2016 (LAC)
BETWEEN:
KARNATAKA NEERAVARI NIGAM LTD.,
REPRESENTED BY ITS EXECUTIVE ENGINEER,
HBC DIVISION, ATHANI, DIST: BELAGAVI.
...APPELLANT
(BY SRI. K.S. PATIL, ADVOCATE)
AND:
1. THE SPECIAL LAND ACQUISITION OFFICER,
HIPPARGI PROJECT, ATHANI.
2. (SRI. ANAND SIDARAI HALLADMAL DIED HIS L.RS.
SMT. GANGAVVA W/O ANAND HALADMAL.
2.A SMT. VERASHA W/O PRASHANT MALI,
AGE: 32 YEARS, OCC: HOUSEHOLD WORK,
R/O UPPARI-416 103, TAL: SHIROL,
DIST: KOLHAPUR, MAHARASHTRA.
2.B MS. RUPA D/O ANAND HALADMAL,
AGE: 28 YEARS, OCC: STUDENT,
R/O ATHANI-591304, DIST: BELAGAVI.
Digitally signed
by
2.C SRI. MAHESH S/O ANAND HALLADMAL,
MOHANKUMAR
B SHELAR AGE: 26 YEARS, OCC: STUDENT,
Location: High
Court of
Karnataka,
R/O SHIVAYOGI NAGAR,
Dharwad Bench
ATHANI-591304, DIST: BELAGAVI.
...RESPONDENTS
(BY SRI. ABHISHEK MALIPATIL, HCGP FOR R1;
R2(A)-DISPENSED WITH;
R2(B) AND R2(C)-SERVED)
THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION
54(1) OF THE LAND ACQUISITION ACT, PRAYING TO ALLOW THE
APPEAL AND SET ASIDE THE JUDGMENT AND AWARD PASSED BY THE
LEARNED PRL. SR. CIVIL JUDGE COURT ATHANI IN LAC NO.51/2012
DATED 12.02.2015 BY LIMITING THE ENHANCEMENT OF MARKET
VALUE OF THE ACQUIRED LAND TO RS.3,00,000/- PER ACRE INSTEAD
IF RS.5,00,000/- & ETC.
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MFA No.102517 of 2016
THIS MFA HAVING BEEN HEARD AND RESERVED FOR
JUDGMENT ON 05.02.2026 AND COMING ON FOR PRONOUNCEMENT
THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: THE HON'BLE DR. JUSTICE K.MANMADHA RAO
CAV JUDGMENT
1. This appeal is filed under Section 54(1) of the Land
Acquisition Act, against the judgment and award dated
12.02.2015, passed by the Principal Senior Civil Judge, Athani
('the Reference Court' for short) in LAC No.51/2012, whereby the
Reference Court has awarded the compensation fixing the
market value of the acquired land at Rs.5,00,000/- per acre.
2. The 1st Respondent-SLAO acquired the land bearing
Sy.No.642, measuring 00 Acre 38 Guntas & Sy.No.643/4B,
measuring 01 Acre 13 Guntas totally measuring 02 Acres 11
Guntas of Athani, for the purpose of construction of a canal
under the Hippargi Barrage Project. The claimants were the
owners of the said lands. Preliminary notification under Section
4(1) of the Land Acquisition Act, 1894 ('the Act' for short) was
issued on 06.03.2008. The Special Land Acquisition Officer
(SLAO) passed an award on 04.12.2010, fixing the compensation
at Rs.1,22,891/- per acre along with statutory benefits. On a
reference application filed under Section 18(1) of the Act, the
Reference Court enhanced the compensation, determining the
market value of the acquired land at Rs.5,00,000/- per acre.
Being aggrieved, the appellant-beneficiary is in appeal.
3. Learned counsel appearing for the appellant contends
that the Reference Court erred in enhancing the compensation. It
is submitted that the acquired lands are irrigated agricultural
lands, situated at a distance of more than 5 KM from the village
and main road, and there is no evidence of N.A. potentiality or
commercial use.
4. In support of the above position, learned counsel
placed reliance on the Coordinate Bench Judgment in
MFA 100035/2016 of this Court, where the appeal by
Karnataka Neeravari Nigam Ltd. v. The Special Land
Acquisition Officer was allowed, fixing the market value of
irrigated lands at Rs.3,69,000/- per acre for notifications of
2005-06, with statutory benefits and escalation for subsequent
notifications. Applying escalation at 5% per annum to the date of
notification of the present lands (06.03.2008), the fair and
reasonable market value works out to Rs.4,24,350/- per acre,
with statutory benefits.
5. The reference by the appellant to the Coordinate
Bench judgment in MFA 100035/2016 is not disputed by the
learned High Court Government Pleader for the respondents.
Respondents were duly served but did not appear.
6. Heard learned counsel for the appellant and perused
the records.
7. Having regard to the Coordinate Bench judgment in
MFA 100035/2016 and the nature, location, and evidentiary
matrix of the lands in question, the ends of justice would be met
if the market value of the land acquired in the present appeal is
fixed at the same enhanced rate as fixed in the Coordinate Bench
judgment, with statutory benefits.
8. Hence, this Court proceeds to pass the following:
ORDER
i. The appeal is partly allowed.
ii. The judgment and award passed by the Reference Court
in LAC No.51/2012, dated 12.11.2014, is modified.
iii. The market value of the acquired lands in the appeal is
fixed at the rate of Rs.4,24,350/- per acre.
iv. The claimants are entitled to compensation at
Rs.4,24,350/- (Rupees four lakh twenty-four thousand
three hundred and fifty only) per acre with statutory
benefits, interest, and costs, instead of Rs.5,00,000/-
per acre awarded by the Reference Court.
v. Registry is directed to draw award accordingly.
vi. All pending I.As. are disposed of.
Sd/-
(DR. K.MANMADHA RAO)
JUDGE
KGK
CT:VP
