Ningappa Thotappa Angadi Dead Thr. Lrs. vs The Spl. Lao And Anr.

3. The facts giving rise to the present controversy may be breifly noted. The Special Land Acquisition Officer, Hubli, Ankola issued Notification No. Reason: HB-LAW CR: 1/2002-2003 dated 18.4.2002 under Section 17(4) and 4(1) 1 of Land Acquisition Act, 1894 for acquiring land situated in Yellapur Village, Hubli Taluka for the purpose of construction of Hubli Ankola Broad Gauge Railway Line with a further direction restraining the affected land owners from alienating or creating charge over the said land. A final notification under Section 17(1) and 6(1) of the Act was issued on 19.10.2002 for acquiring the said land. Subsequently, Land Acquisition Officer passed an award on 17.3.2003 with respect to the acquired land and fixed the market value at the rate of Rs.7,500/- per gunta. Aggrieved by the Land Acquisition Officer’s award, the appellant(s) and other similarly placed persons sought refence under Section 18 of the 1894 Act seeking enhancement of compensation. The Reference Court-cum-Principal Civil Judge, Hubli passed a common order on 12.10.2006 and relying upon an earlier award of its own in LAC No.44/2004 in which compensation of Rs 25,000/- per gunta had been awarded, coupled with the fact that the acquired land in the present case and the land in LAC No. 44/2004 are located in adjoining villages and in close proximity of Hubli City, the Reference Court enhanced the compensation to Rs 25,000/- per gunta ( Rs 10,00,000/- per acre).

4. Aggrieved by the afore-stated enhancement, the Land Acquisition Officer preferred appeals before the High Court of Karnataka contending that the acquired land was actually ‘dry land’ and that some other modes for determining its current market value should also have been applied. On the other hand, the claimants—affected land owners filed cross-objections seeking enhancement of compensation to Rs 26,000/- per gunta. The High 2 Court of Karnataka vide impugned judgment dated 24.11.2008 allowed appeals filed by the Land Acquisition Officer. The High Court observed that the same Land Acquisition Officer had acquired some other land vide preliminary notification dated 13.05.2005 for the same public purpose and claimants/land owners in those proceedings entered into an agreement and a consent award was passed granting Rs 6,00,000/- per acre. Having noted the exampler, the High Court held that lands of the present claimants which were acquired 3 years prior to 13.05.2005, could not be granted compensation of Rs 26,000 per guntas. Consequently, the High Court applied the principle of annual depreciation @ 15% and modified the award passed by Reference Court and reduced the compensation to Rs. 5,10,000/- per acre.

12. For the reasons aforestated, the appeal is allowed in part, the impugned order passed by the High Court dated 24.11.2008 in M.F.A. No. 3274/2007 is set aside and the award passed in favour of the appellant- claimant(s) by the Reference Court is restored. However, the appellant- claimant(s) shall not be entitled to any interest on the enhanced compensation and statutory amount for the period of delay of 2928 days in filing the appeal. Ordered accordingly.

(SURYA KANT) NEW DELHI DATED : 13.12.2019 6