- 1 - MFA NO.31872 OF 2012 IN THE HIGH COURT OF KARNATAKA KALABURAGI BENCH DATED THIS 16TH DAY OF APRIL, 2025 PRESENT THE HON'BLE MR. JUSTICE K NATARAJAN AND THE HON’BLE MR. JUSTICE VIJAYKUMAR A. PATIL MISCELLANEOUS FIRST APPEAL NO. 31872 OF 2012 BETWEEN: 1. SRI MADHAV S/O SRIDHAR JAGIRDAR 2. SRI GOVIND S/O SRIDHAR JAGIRDAR 3. SRI ANAND S/O MANOHAR ZALAKI 4. SRI ANAND S/O MANOHAR ZALAKI 5. SRI ARVIND S/O MANOHAR ZALAKI 6. SMT. USHA W/O MANOHAR ZALAKI 7. SRI RAMESH S/O SRIDHAR ZALAKI 8. SRI NARAYAN S/O SRIDHAR ZALAKI ALL ARE REP. BY POWER OF ATTORNEY HOLDER SRI GIRISH S/O RAMESH ZALAKI AGED ABOUT 35 YEARS, OCC: AGRICULTURE / BUSINESS, R/O KAVI PLOT, BIJAPUR – 586101. …APPELLANTS (BY S.S. MAMADAPUR, ADVOCATE) AND: 1. THE SPECIAL LAND ACQUISITION OFFICER, NATIONAL HIGHWAY, DHARWAD. Digitally signed by RAMESH MATHAPATI Location: HIGH COURT OF KARNATAKA - 2 - MFA NO.31872 OF 2012 2. THE EXECUTIVE ENGINEER, NATIONAL HIGHWAY DIVISION, BIJAPUR – 586101. …RESPONDENTS (BY SMT. ARCHANA P. TIWARI, AAG A/W SRI SHIVAKUMAR TENGLI, AGA FOR R1 & R2) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 54(1) OF LA ACT, PRAYING TO ENHANCE THE COMPENSATION AMOUNT PAYABLE TO THE APPELLANTS BY SUITABLY MODIFYING THE JUDGMENT AND AWARD DATED 14.03.2012 PASSED BY THE LEARNED SENIOR CIVIL JUDGE, INDI IN LAC NO.57/2007. THIS APPEAL HAVING BEEN HEARD AND RESERVED FOR JUDGMENT ON 08.04.2025, COMING ON FOR “PRONOUNCEMENT OF JUDGMENT” THIS DAY, THE COURT, PRONOUNCED THE FOLLOWING: CORAM: HON'BLE MR. JUSTICE K NATARAJAN AND HON’BLE MR. JUSTICE VIJAYKUMAR A. PATIL CAV JUDGMENT (PER: THE HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL) This appeal is filed by the claimants seeking for higher compensation being aggrieved by the judgment and award dated 14.03.2012 passed in LAC.No.57/2007 by the Senior Civil Judge, Indi (for short, ‘reference Court’). 2. Brief facts leading to the filing of this appeal are that the State Government issued a preliminary notification dated 23.02.2001 to acquire the appellants’ - 3 - MFA NO.31872 OF 2012 land in Sy.No.12 situated at Zalaki Village measuring 10 acres for the purpose of construction of vehicle terminals and thereafter the final notification was issued. The Land Acquisition Officer passed the award by determining the market value at Rs.19,280/- per acre. 3. The appellant sought reference. The reference Court recorded the evidence of the parties. On behalf of claimants, PW-1 was examined and got marked Ex.P1 to P31. The respondent did not adduce any oral evidence, but with consent got marked Ex.R1 and R2. The reference Court on appreciation of the oral and documentary evidence, enhanced the market value at Rs.1,20,000/- per acre. Being aggrieved, the claimants are in appeal seeking for higher compensation. 4. Sri. S.S. Mamadapur, learned counsel appearing for the appellants submits that the reference Court has committed a grave error in appreciating the evidence on record. The fact that the subject land is adjacent to the national highway and has non-agricultural potentiality, has - 4 - MFA NO.31872 OF 2012 not been considered by the reference Court. It is submitted that the evidence on record clearly establishes that the surrounding lands have been fully developed and residential buildings, offices have come up and as per Ex.P17 and P18, the land is situated abutting to the developed area as well as the National Highway No.13. It is further submitted that the acquired land is very near to the bus stand and at 300 meters KEB sub-station has been constructed, police department has constructed quarters and commercial shops, hotels have come up which has not been appreciated by the reference Court. In support of his contention, he refers to Ex.P22 and P23 photographs. It is also submitted that Ex.P11 to P13 are the sale deeds which depict that the market value of the land is more than Rs.10,000/- per gunta and the reference Court ought to have considered the same and awarded just compensation to the land in question. The acquired land is adjacent to the national highway. Hence, the appellants are entitled for higher compensation, however the claimants are restricting their claim of compensation at the - 5 - MFA NO.31872 OF 2012 rate of Rs.4,00,000/- per acre. Hence, he seeks to allow the appeal. 5. Per contra, learned Additional Advocate General appearing for the respondents supports the impugned judgment and award of the reference Court and submits that the reference Court has recorded the clear finding that the appellants have failed to produce the evidence to prove the market value of the land in question and considering the evidence on record, has enhanced the market value at Rs.1,20,000/- per acre, which does not call for any further enhancement. Hence, she seeks to dismiss the appeal. 6. We have heard the arguments of the learned counsel for the appellant, learned AAG for the respondents and perused the material available on record. The point that arises for our consideration in this appeal is that: “Whether the impugned judgment and award passed by the reference Court calls for interference in this appeal by enhancing the compensation of the land in question?” - 6 - MFA NO.31872 OF 2012 7. The undisputed facts between the parties are that on 23.02.2001, the State Government issued the preliminary notification under Section 4(1) of the Land Acquisition Act, 1894 (hereinafter referred as ‘LA Act’) to acquire the appellants’ land in Sy.No.12 situated at Zalaki Village measuring 10 acres for the purpose of construction of vehicle terminals. The final notification under Section 6(1) of the LA Act was issued on 16.01.2002. The Land Acquisition Officer passed an award on 30.12.2002 by determining the market value of the acquired land at Rs.19,280/- per acre. The appellant sought reference under Section 18(1) of the LA Act. The reference Court enhanced the compensation at Rs.1,20,000/- per acre. 8. One Sri Girish, GPA Holder of other claimant examined himself as PW-1. The evidence of PW-1 indicates that the acquired land is attached to Bijapur – Solapur National Highway No.13. Admittedly, the acquisition is for the construction of vehicle terminal by the State Government which further makes it clear that the subject land is abutting to the national highway. The evidence of - 7 - MFA NO.31872 OF 2012 PW-1 is that the father of the claimant filed an application to the Gram Panchayat, Zalaki and other authorities for obtaining no objection to file an application seeking for conversion of land from agriculture to non-agriculture purpose. Ex.P3, Ex.P4 to P9 indicate that the distance between the acquired land and Zalaki village is 1 km, further within a distance of 200 meters Zalaki bus stand is situated and in the surrounding land of the acquired land, police quarters have come up. Weighing bridge, hotel, lodge and other residential layout have also come up. The evidence of PW-1 supported with documentary evidence on record clearly demonstrates that the acquired land is located between Zalaki village and the national highway and the surrounding area of the acquired land has been developed for residential and commercial purposes. Considering the evidence on record, we are of the considered view that the acquired land does have the potentiality for non-agriculture activities and the said land is required to be considered as a non-agricultural land for - 8 - MFA NO.31872 OF 2012 the purpose of determination of the market value of the said land. 9. The Land Acquisition Officer in his award has clearly mentioned that he has inspected the land in question, the nature of soil is black soil, near the acquired land there is Zalaki bus stand, the distance between the acquired land and Zalaki village is 1 km and within a distance of 300 meters KEB sub-station is constructed. In view of such an evidence on record, the acquired land is required to be considered as a converted land for non- agriculture purpose to determine the market value. 10. The evidence of PW-1 further indicates that the surrounding lands have been sold at a higher rate and to substantiate the same, Ex.P11 to Ex.P13 - sale deeds are produced. Ex.P11 –sale deed dated 19.02.2001 pertaining to land measuring 02 guntas in block No.42 of Zalaki village is sold at Rs.20,000/-. Ex.P12 is a sale deed dated 19.07.1999, in which the sale consideration is Rs.26,500/- for 03 guntas. Ex.P13 – sale deed dated 11.04.2007, in - 9 - MFA NO.31872 OF 2012 which the sale consideration is Rs.3,27,000/- for 20 guntas. The claimants have also relied on Ex.P14 - judgment in LAC.Nos.816 & 817 of 1999 of the reference Court. Admittedly, the acquired land is situated at Zalaki village adjacent to NH-13 and the lands covered in Ex.P14 are of Mahalbagavat, Bijapur. Hence, Ex.P14 to P16 cannot be the basis to determine the market value of the land in question. Ex.P17 – map, Ex.P21 to P28 are the photographs and the negative of the photographs demonstrate that the acquired land is abutting to the national highway and the surrounding land has been fully developed. As per Ex.P11 – sale deed dated 19.02.2001 the market value per gunta is Rs.10,000/-. Ex.P12 dated 19.07.1999, the market value per gunta is Rs.8,833/- and Ex.P13 sale deed dated 11.04.2007, the market value per gunta is Rs.16,350/-. Ex.P12 and P13 are prior and later respectively to the notification in question. The preliminary notification to acquire the land was issued on 23.02.2001. Hence, it would be just and appropriate to consider Ex.P11 - 10 - MFA NO.31872 OF 2012 – sale deed dated 19.02.2001 as a basis to determine the market value of the land in question. 11. The subject matter of the Ex.P11 is only to an extent of two guntas. Hence, the said sale consideration cannot be the sole basis to determine the market value of the acquired land. Ex.P11 indicates that the said land is sold as a residential plot. If Ex.P11 is considered as a basis to determine the market value, then there should be an appropriate deduction towards the development of the land and its cost. In an approved layout, the developer is required to earmark certain portion of the land for the purpose of roads, drainages, civic amenity sites etc., and reserving the portion of the land in the layout comes up to approximately more than 40% of the land covered under the layout. This Court also cannot ignore the fact that to form the layout, the developer is required to spend substantial amount towards the development charges, conversion fees, etc., Hence, considering these aspects, as per Ex.P11, the market value is Rs.10,000/- per gunta and if we deduct 50% towards the development, the market - 11 - MFA NO.31872 OF 2012 value would be Rs.5,000/- per gunta or Rs.2,00,000/- per acre. The reference Court has committed a grave error in ignoring Ex.P11 – sale deed dated 19.02.2001. The nature of the land covered under Ex.P11 and the acquired land are similar, having similar potentiality. Keeping the said evidence in mind, the market value of the land is re-determined. It is needless to observe that the appellants are entitled to an interest and statutory benefits as per the provisions of the LA Act. 12. In the result, we proceed to pass the following : ORDER i. Appeal is allowed-in-part with costs. ii. The impugned judgment and award of the reference Court dated 14.03.2012 in LAC.No.57/2007 passed by the Senior Civil Judge, Indi, is modified by enhancing the market value of the land at Rs.2,00,000/- per acre. iii. The appellants/claimants are entitled to interest and statutory benefits as per the Land Acquisition Act, 1894. - 12 - MFA NO.31872 OF 2012 iv. The Registry is directed to draw the modified decree. v. The original records shall be transmitted back to the trial Court. Sd/- (K NATARAJAN) JUDGE Sd/- (VIJAYKUMAR A. PATIL) JUDGE MCR CT: PS