The Assistant Commissioner And Land ... vs Ashwathanarayanaswamy
2026 Latest Caselaw 667 Kant

Karnataka High Court

The Assistant Commissioner And Land ... vs Ashwathanarayanaswamy on 31 January, 2026

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                                                    MSA No. 91 of 2021


              HC-KAR



                IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                     DATED THIS THE 31ST DAY OF JANUARY, 2026

                                     BEFORE
               THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE
              MISCELLANEOUS SECOND APPEAL NO. 91 OF 2021 (LA)
              BETWEEN:

              THE ASSISTANT COMMISSIONER AND
              LAND ACQUISITION OFFICER,
              KOLAR SUB DIVISION, KOLAR - 563101.
                                                          ...APPELLANT
              (BY SRI M RAJAKUMAR, AGA)
              AND:

              ASHWATHANARAYANASWAMY,
              S/O LATE MUNIVENKATAPPA,
              AGED ABOUT 54 YEARS,
              R/O BANGAVADI VILLAGE,
              KASABA HOBLI, SRINIVASAPURA TQ,
              KOLAR DISTRICT.
                                                        ...RESPONDENT
              (BY SRI SHANKAR M NAIK, ADVOCATE)
Digitally
signed by
PRAMILA G V
                   THIS MSA IS FILED UNDER SECTION 54(2) OF LAND
Location:     ACQUISITION ACT AGAINST THE ORDER DATED 02.11.2018
HIGH COURT
OF            PASSED IN MA No.18/2017 ON THE FILE OF THE I ADDITIONAL
KARNATAKA
              SESSIONS JUDGE, KOLAR, PARTLY ALLOWING THE APPEAL
              AND SETTING ASIDE THE JUDGMENT AND AWARD DATED
              08.08.2017 PASSED IN LAC No.6/2013 ON THE FILE OF THE I
              ADDITIONAL SENIOR CIVIL JUDGE, KOLAR, PARTLY ALLOWING
              THE APPEAL FILED UNDER SECTION 18 OF THE LAND
              ACQUISITION ACT.

                   THIS APPEAL, COMING ON FOR FINAL HEARING, THIS
              DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
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                                                     NC: 2026:KHC:5523
                                                    MSA No. 91 of 2021


HC-KAR



CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE


                            ORAL JUDGMENT

This appeal is filed against the Award passed by the

Reference Court and the decree passed by the Appellate Court.

The dispute arises out of the land acquisition proceedings

initiated under the provisions of the Land Acquisition Act, 1894.

2. This appeal is by the State. The respondent's land is

acquired for the benefit of the railway. The beneficiary railway

is not made a party to the proceeding before the Reference

Court. The respondent's land is acquired in terms of Section 4

Notification dated 10.02.2011. The land acquisition officer fixed

Rs.1,50,000/- per acre as the market value of the land. The

land loser sought reference seeking enhancement of

compensation. The Reference Court after hearing the petitioner

and respondent-State before it, enhanced the market value to

Rs.1,60,000/- per acre. In addition Rs.56,000/- is awarded as

the compensation for trees and the crops in the acquired land.

3. Aggrieved by the compensation determined by the

Reference Court, the land loser filed appeal before the I

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Additional District Judge, Kolar in MA No.18/2017. The said

appeal is allowed in part. The Appellate Court fixed

Rs.2,50,000/- per acre as the market value. The compensation

payable in respect of the crops and trees is enhanced to

Rs.1,00,000/-. In addition, the other consequential benefit is

also conferred.

4. The acquiring authority is made a party to the

proceeding and the beneficiary is not made a party to the

proceeding. The acquiring authority-State is in appeal before

this Court on the premise that the proceeding is defective, the

compensation is required to be paid by the beneficiary and the

beneficiary is not made a party.

5. The learned Government Advocate submits that the

beneficiary has instructed the appellant to file an appeal and

beneficiary has also deposited entire compensation amount

before the State authorities and since there is an instruction by

the beneficiary to file an appeal, the present appeal is filed.

6. Learned Government Advocate would submit that

the settled position of law is the proceeding before the

Reference Court is to be initiated by making the beneficiary as

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well as acquiring authority as parties to the proceeding. In the

instant case only the acquiring authority is made a party and

the beneficiary is not made a party. Thus, learned counsel

would contend that the matter has to be remanded to the

Reference Court for fresh adjudication.

7. It is also urged that the compensation fixed by the

Reference Court in respect of the trees and crops is on higher

side and liable to be set aside and it is further submitted that

the compensation determined by the Appellate Court in respect

of the land as well as on the trees is on higher side and has to

be set aside.

8. It is relevant to notice that the beneficiary has not

filed appeal before the District Judge challenging the award

passed by the Reference Court. However, it is also required to

be noticed that the beneficiary was not made a party to the

proceeding before the Reference Court.

9. Before this Court, contention is raised holding that

the trees were not in existence and the crops were not grown

when the property was acquired.

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10. This being the position, the Court is of the view that

the matter requires to be remanded.

11. Hence the following:

ORDER

(i) Appeal is allowed in part.

(ii) The impugned judgment and decree dated 02.11.2018 on the file of I Additional District Judge, Kolar in M.A. No.18/2017 are set aside.

(iii) The impugned judgment and award dated 08.08.2017 on the file of I Additional Senior Civil Judge, Kolar in L.A.C.No.6/2013 are set aside in part.

(iv) The matter is remitted to the Reference Court to consider the land loser's claim for higher compensation.

     (v)     The Reference Court shall issue notice to the
             beneficiary      South     Western      Railway
             Corporation as respondent No.2.

     (vi)    The amount said to have been deposited with

the appellant by the railway in respect of the award which is affirmed by the Appellate Court to the extent of Rs.1,50,000/- per acre shall

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be released in favour of the claimant along with other consequential benefits and interests, subject to claimant giving an undertaking in writing that in case the market value is reduced he will reimburse the excess compensation received along with interest @ 6% per annum from the date of receipt till the date of repayment.

(vii) The balance amount deposited by the Indian Railway Corporation shall be kept in a Fixed Deposit in a Nationalised Bank for a period of one year with auto renewal mandate.

(viii) The balance amount to be kept in deposit in Nationalised Bank shall be released in terms of final judgment.

(ix) This Court has not expressed anything on the merits of the matter and all contentions are kept open.

Sd/-

(ANANT RAMANATH HEGDE) JUDGE

GVP List No.: 1 Sl No.: 19