Peerappa Hanmantha Harijan(D) By ... vs State Of Karnataka

The relevant facts which are required for the purpose of considering the rival legal contentions urged on behalf of the parties in these appeals are stated in brief hereunder.

The Special Deputy Commissioner, Gulbarga, vide award dated 28.05.1982 fixed the market value of the acquired land at Rs.1700/- per acre along with other statutory payments such as 15% solatium and statutory interest payable on the compensation amount.

Accordingly, the amended claim petition was filed by the appellant (since deceased) before the Reference Court after remand order passed by this Court seeking compensation at the rate of Rs.2,50,000/- per acre before the Principal Civil Judge, Gulbarga, who relied upon the judgment and order of the Karnataka High Court dated 27.02.2005 in MFA No. 3796 of 2005 and Cross Objection No. 213 of 2005, which had relied upon the sale deeds of the sites carved out in Sy. No.389 at the rate of Rs.7.5/- per sq. feet. The reference of the Sy. No.414/2 of the same village according to which the sale deed had been executed at the rate of Rs.13/- per sq. feet in the year 1985-1986 was also relied on, on the basis of which the learned Principal Civil Judge allowed the claim petition of the appellants in part and enhanced the compensation awarded initially from Rs.1,700/- per acre of land to Rs.1,37,000/- per acre of land after re-determination of the market value of the land and awarded the other statutory benefits payable to the owners under the provisions of the L.A. Act vide order dated 29.09.2012 passed in LAC No. 943 of 1997.

Aggrieved by the said judgment and order of Reference Court passed in LAC No. 943 of 1997, the appellants preferred MFA No. 32157 of 2012 before the Karnataka High Court, Gulbarga Bench. The State Government, through KIADB belatedly preferred MFA 30702 of 2013 before the High Court after the dismissal of the above Miscellaneous appeal of the appellants seeking for enhancement. The learned single Judge of the High Court held that the Reference Court while fixing the market value of the acquired land had taken into consideration the fact that it has got the Non-Agricultural (NA) potential and had also deducted charges towards the waiting period as well as development charges at the rate of 30% and had re-determined the market value of the acquired land at Rs.1,37,000/- per acre. Therefore, the learned single Judge of the High Court has held that the same did not call for its interference and accordingly dismissed the appeal of the appellants vide judgment and order dated 05.03.2013.

While the matter was yet to be heard by this Court, the respondent-State through KIADB filed Review Petition No.2537 of 2013 before the High Court in MFA No.32157 of 2012. It had also filed belated MFA No. 30702 of 2013 against the judgment and Award passed by the Reference Court in LAC No. 943 of 1997 M/s Ultra Tech Cement Ltd. through its Unit M/s. Rajashree Cement Ltd. filed Writ Petition No. 100860 of 2013 before the High Court on 19.03.2013 questioning the correctness of the award of compensation passed in favour of the land owners on the ground that they are the necessary party to the reference proceedings before the Reference Court and they were not notified in the said proceedings. The learned single Judge set aside the judgment and award order of the Reference Court by allowing the above writ petition and directed it to afford an opportunity of hearing to the alleged beneficiary-Company to participate in the proceedings and to decide the matter on merits in accordance with law after affording opportunity to the Company.

The Reference Court vide its judgment and order dated 29.09.2012 enhanced the compensation from Rs 1,700/- per acre to Rs. 1,37,000/- per acre. The Reference Court relied on the judgment and order of the Karnataka High Court dated 27.02.2005 in MFA No. 3796 of 2005 and Cross Objection No. 213 of 2005, which pertains to the same village, where the lands of the owners were acquired for establishment of industries under notification in the year 1988. The High Court in the said case questioned the correctness of determination of market value by the Reference Court at Rs. 5.7/- per sq. ft. in Cross Objection No. 213 of 2005 filed by the respondent-landowner in the said appeal. In arriving at the market value of the land under acquisition, the said compensation was made on the basis of the average of the various rates covered under various sale-deeds under different sites, carved out from the lands in survey numbers which lands are adjacent to the land covered in the said MFA and Cross Objection, located at different places and sold on different dates, which had been taken at Rs.6.33 per sq.ft. The same had been escalated by 10% on the ground that the date of preliminary notification in that case was issued on 03.11.1988. The said sites under the said sale-deeds referred to above were sold two to three years earlier. The High Court held that taking the average of the prices of different sites situated at different places and sold at different points of time is not permissible in law. The High Court took the value of the plot as would be the most beneficial to the claimant which was Rs.7.5/- per sq.ft for land carved out of Sy. No. 389 and at Rs. 13/- per sq. ft for the land carved out of Sy. No. 414/2. The High Court enhanced the compensation accordingly, after deduction of 10% towards escalation charges. The Reference Court in the present case after taking the aforesaid criteria of developmental charges, de-escalation charges and waiting period charges, awarded the compensation at Rs 7.5/- per sq.ft. in relation to the land of the appellants in the present case. The compensation was fixed at Rs.7.5 x 43,560 sq.ft. which came to Rs.3,26,700/- after giving the necessary deduction towards developmental charges was made at the rate of 25% and 5% towards waiting period and expenses for conversion i.e. 30%, which came to Rs.98,000/- deducted from Rs.3,26,700/-. This was determined as the market value of the land as on the date of the preliminary notification dated 03.11.1988 as in the MFA No. 3796 of 2005 and Cross Objection No. 213 of 2005. Since in the instant case, the notification was issued on 18.06.1981, de-escalation charges were deducted at the rate of 5% for 8 years, and an award of Rs.1,37,000/- per acre was arrived at in the present case by the Reference Court as compared to Rs.2,50,000/- per acre as demanded by the appellants, which was upheld by the High Court.

Further, the learned single Judge of the High Court has further committed an error in law in not appreciating Section 54 of the L.A. Act, which provision provides the right to appeal to the land owners, or state government and beneficiaries of the acquired land but not to the Company which is the lessee. When the company does not have the right to file an appeal against the award it also has no right to file a writ petition. The KIADB has filed the belated appeal after disposal of the appeal filed by the appellants by the High Court and against which award it has filed the present appeal questioning the correctness of the same and prayed for enhancement of compensation and the said appeal is being disposed of by this common judgment after adverting to the rival legal contentions urged on behalf of the parties. The High Court has rightly dismissed the belated appeal filed by the KIADB.

Therefore, the appeal filed by KIADB questioning the order of remand passed in the Writ Petition and Review Petition is liable to be set aside. The appeal has been filed by the KIADB as it is aggrieved of the findings and certain observation recorded against them by the High Court and it has got reasonable apprehension that the Reference Court may not appreciate the facts and evidence that may be produced before it. For the reasons stated above, the appeal filed by the KIADB has no merit and they have become unnecessary hence, the same are liable to be dismissed. Accordingly, we dismiss the same.

CALCULATION Per sq ft = Rs.7.5/-

Per acre = Rs.7.5 X 43,560 square feet= Rs.3,26,700/- per acre.

Incidental and other charges @ 10%= Rs.32, 670/-

After the above deduction = Rs.2,94,030/-

De-escalation charges = 5% for 7 years (5% x 7 x 2,94,030/- = Rs.1,02,910/- per acre(rounded off) Compensation = Rs. 2,94,030/- (-) Rs. 1,02,910/- = Rs. 1,91,120/-

Accordingly, the appeals arising out of SLP (C) Nos.31624-31625 of 2014 for setting aside the judgment and order of remand passed by the High Court in Writ Petition No. 100860 of 2013 (filed by the Company) and the Review Petition No. 2537 of 2013 (filed by KIADB) are allowed and set aside the same by allowing these appeals.

The appeals arising out of SLP (C) Nos.3482-3484 of 2015 filed by the KIADB for setting aside the observations and findings recorded in the judgment and order of remand passed by the High Court at the instance of KIADB and the Company are dismissed as it is unnecessary in the light of the setting aside of the impugned judgment and order of remand to the Reference Court by this Court.

The appeal arising out of SLP (C) No. 19819 of 2013 filed by the landowners for enhancement of compensation in respect of their acquired land is allowed as clearly mentioned in the penultimate paragraph of this judgment i.e. enhancement of the compensation amount from Rs.1,37,000/- to 1,92,000/- per acre along with solatium at the rate of 30% under Section 23 (2)and statutorily payable interest under Sections 23 (1-A), 28 of the L.A. Act upon the compensation awarded in this appeal. The appellants are also entitled to the costs of the proceedings throughout as provided under Section 27 of L.A. Act. The memo of costs may be filed within three weeks to prepare the decree.

I.A. No. 2 for impleadment of Ultra Tech Cement Ltd. is dismissed as not maintainable, however, they have been heard in the matter.

……………………………………………………………………J. [V.GOPALA GOWDA] ……………………………………………………………………J. [C.NAGAPPAN] New Delhi, July 30, 2015 ITEM NO.1A-For Judgment COURT NO.2 SECTION IVA S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS Civil Appeal No(s).5804/2015 @ SLP(C) No.19819/2013 PEERAPPA HANMANTHA HARIJAN(D) BY LRS.& OR Appellant(s) VERSUS STATE OF KARNATAKA Respondent(s) WITH Civil Appeal No(s).5806-5807/2015 @ SLP(C) Nos. 31624-31625/2014 Civil Appeal No(s).5808-5810/2015 @ SLP(C) Nos. 3482-3484/2015 Date : 30/07/2015 These appeals were called on for pronouncement of JUDGMENT today.

For Appellant(s) Dr. (Mrs.) Vipin Gupta,Adv.

Mr. Anup Jain,Adv.

For Respondent(s) For M/s. Khaitan & Co.

Mr. Abhijat P. Medh,Adv.

Leave granted.

The appeals arising out of SLP(C) Nos.31624-31625/2014 are allowed, the appeals arising out of SLP(C) Nos.3482-3484/2015 are dismissed and the appeal arising out of SLP(C) No.19819/2013 is allowed in terms of the signed Reportable Judgment.

I.A. No. 2 for impleadment of Ultra Tech Cement Ltd. is dismissed as not maintainable, however, they have been heard in the matter.

Pending application(s), if any, stands disposed of.