- 1 - HC-KAR NC: 2025:KHC-K:2770 MSA No. 200055 of 2016 IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 2ND DAY OF MAY, 2025 BEFORE THE HON'BLE MR. JUSTICE M.G.S.KAMAL M.S.A NO. 200055 OF 2016 (LA) BETWEEN: 1(a) MALKAJAPPA @ MALLIKARJUN S/O REVANSIDDAPPA BY LRS SHAKUNTALA W/O APPARAO AGED ABOUT 42 YEARS OCCU: AGRICULTURE R/O KANNADAGI TQ: CHITTAPUR DIST - KALABURAGI. 1(b) ANNARAO BIRADAR W/O MALLIKARJUNAPPA BIRADAR AGED ABOUT 46 YEARS OCCU:AGRICULTURE R/O KANNADAGI TQ: CHITTAPUR DIST - KALABURAGI. …APPELLANTS (BY SRI. HARSHAVARDHAN R. MALIPATIL, ADVOCATE) AND: 1. SPECIAL LAND ACQUISITION OFFICER M & MIP, KALABURAGI-585 102. 2. 3. DEPUTY COMMISSIONER MINI VIDHAN SOUDHA KALABURAGI- 585 102. THE EXECUTIVE ENGINEER, KNNL BNT PROJECT HEBBAL DIVISION TQ: CHITTAPUR DIST: KALABURAGI - 585 102. …RESPONDENTS Digitally signed by SUMA B N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC-K:2770 MSA No. 200055 of 2016 (BY SRI. K. SHASHI KIRAN SHETTY AG A/W SRI. K. MALLAHA RAO, AAG AND SMT. T. MAYA AGA FOR R1 & R2 SRI. SANJEEV KUMAR PATIL, SRI. M. SUDARSHAN MS. HETU ARORA SETHI AND MS. L. MOHINI BHAT., ADVOCATE FOR R3) THIS MSA IS FILED UNDER SEC. 54(2) OF LAND ACQUISITION ACT, AGAINST THE JUDGMENT AND AWARD DATED 21.08.2015 PASSED IN LAC.APPEAL NO.820/2012 ON THE FILE OF THE I ADDL. DISTRICT JUDGE, AT KALABURAGI, WHEREIN ALLOWING THE APPEAL FILED AGAINST THE JUDGMENT AND AWARD DATED 17.04.1996 ON THE FILE OF THE ADDL. CIVIL JUDGE, AT GULBARGA, IN LAC NO.421/1993 ACCEPTED IN PART. THIS APPEAL, COMING ON FOR FURTHER HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.G.S.KAMAL ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE M.G.S.KAMAL) This appeal is filed by the appellants/claimants claiming to be the owners of land bearing Sy.Nos.35/1, 35/8, 35/11 and 48 measuring 24 guntas, 16 guntas, 40 guntas and 10 acres respectively totally measuring 12 acres and 16 guntas of land situated in Kannadagi, Gulbarga District which was acquired for the purpose of construction of Bennethora Project in terms of Preliminary Notification dated 05.04.1990 issued under Section 4 (1) of the Land Acquisition Act, 1894. 2. The Special Land Acquisition Officer had determined the compensation at Rs.5,400/- per acre which was enhanced - 3 - HC-KAR NC: 2025:KHC-K:2770 MSA No. 200055 of 2016 by the Reference Court vide order dated 17.04.1996 in LAC No.421/1993 to Rs.25,000/- per acre. In the appeal filed in LACA No.820/2012 before the I Additional District Judge, Kalaburgi, the said compensation was further enhanced to Rs.56,800/- per acre vide judgment and award dated 21.08.2015. Aggrieved by the same, the appellants/claimants have preferred the present appeal seeking further enhancement. 3. The Coordinate Bench of this Court by order dated 13.03.2017 had allowed the aforesaid appeal granting enhanced compensation of Rs.1,52,059/- per acre of dry land with all statutory benefits. However, it was clarified that the appellants/claimants were not entitled for interest for the delayed period. 4. Aggrieved by the same, respondent-KNNL had carried the matter in appeal to the Apex Court. By orders dated 10.05.2022 and 12.03.2024 passed in the said civil appeal along with connected matters, the Apex Court set aside the earlier order passed by this Court and remanded the matter for - 4 - HC-KAR NC: 2025:KHC-K:2770 MSA No. 200055 of 2016 fresh consideration. Accordingly, matter was taken up for hearing. 5. After hearing the matter on merits and upon the submissions made by the learned Advocate General and the learned counsel appearing for the appellants as well as the respondents, the matter was placed before the Hon'ble Mr. Justice A.V. Chandrashekar, Former Judge, High Court of Karnataka for mediation. Accordingly, mediation process was undertaken and the parties have arrived at amicable resolution of their dispute by entering into a Mediation Agreement. The process of settlement has been accepted and approved by the respondent- State Government as seen in the Communication bearing No.d¸ÀAE 124 JAJAf 2024, dated 23.04.2025 produced by learned Additional Advocate General. 6. The terms of the Mediation Agreement are as under: MEDIATION AGREEMENT "Thorough discussions were held in the presence of the Learned Mediator, Justice A.V.Chandrashekhar (Retired), the Managing Director of Karnataka Neeravari Nigam (Hereinafter "KNNL"), the Learned Advocate General, the Additional Advocate General, Kalaburagi, the Learned Advocates appearing for the parties, and the authorized representatives of KNNL. - 5 - HC-KAR NC: 2025:KHC-K:2770 MSA No. 200055 of 2016 The present appeal is one of several land acquisition matters pertaining to various irrigation projects which are being undertaken and managed by KNNL, which were remanded to the Hon'ble High Court of Karnataka, Kalaburagi Bench at the instance of the KNNL which preferred Special Leave Petitions before the Hon'ble Supreme Court of India by the orders dated 10.05.2022 and 12.03.2024. By order dated 27.09.2024, the Hon'ble High Court referred the matters for mediation. The present compromise has been duly approved by the State Government of Karnataka on 23.04.2025. After considering the various factors like the decisions of the Hon'ble Supreme Court and deliberations between the parties, the parties have voluntarily agreed as follows: (a) The market value of the land acquired is calculated and arrived at Rs.1,52,059/- per acre (Words: one lakh fifty two thousand fifty nine rupees only); (b) The Appellant/s(Claimant/s) is/are entitled for all statutory benefits under Land Acquisition Act, except for the period of delay in filing the Appeal before the First Appellate Court and for the period of delay in filing the Appeal before the Hon'ble High Court; (c) No interest is payable to the Appellant/s(Claimant/s) for the period of delay in filing the Appeal before the First Appellate Court and for the period of delay in filing the Appeal before the Hon'ble High Court; (d) The Appellant/s (Claimant/s) agree that they will give up statutory interest for a period of two years; (e) It is agreed to between the parties that the calculation of interest is made up to the date of approval by the State Government of Karnataka i.e. 23.04.2025. - 6 - HC-KAR NC: 2025:KHC-K:2770 MSA No. 200055 of 2016 (f) Subject to the vacation of stay in W.P. (C) No. 100913 of 2025, it is agreed to between the parties that, in case the agreed amount is not paid within four months from the signing of this agreement, KNNL will not be entitled for exemption of payment of interest for a period of two years as outlined in clause (d); (g) The Appellant/s(Claimant/s) has/ have understood and agreed that the payment of amounts quantified in the present agreement would be made from the through the P.D. account of KNNL of the Chief Accounts Officer, KNNL, Dharwad. (Head of Account "8443-00-106") as outlined in G.O. No. AE 13 TAR 2023 dated 27.09.2024; (h) The Appellant/s(Claimant/s) agree that the present agreement would be a full and final settlement of their claims and they would not be entitled to any differential interest except in accordance with the terms of this agreement; (i) Appellant/s(Claimant/s) has/have agreed to give an undertaking in writing about the genuineness of their claim and undertake to furnish copy of the Passbook and Aadhar Card immediately upon signing of the agreement; (j) The Appellant/s(Claimant/s) agree that the present agreement would be a full and final settlement of their claims and they and/or their legal heirs undertake to not agitate any further claims in this regard, in the future; (k)The Appellant/s(Claimant/s) agree to withdraw all pending Execution Petition(s) in terms of this agreement; (l) KNNL would not be bound to pay any further compensation or claim to a third party, should any dispute arise between the Appellant/s(Claimant/s) - 7 - HC-KAR NC: 2025:KHC-K:2770 MSA No. 200055 of 2016 and such person, in respect of ownership and claim of the acquired land; (m) KNNL has agreed to pay the costs to the Appellant/s(Claimant/s) which is equivalent to the Court fee paid by the Appellants. Consequently, KNNL is entitled for return of Court fee from this Hon'ble Court, as per law; (n) KNNL has undertaken that the payment of agreed amount will be deposited directly to the account of the Appellant/s(Claimant/s) through the P.D. account of KNNL of the Chief Accounts Officer, KNNL, Dharwad. (Head of Account "8443-00-106") as outlined in G.O. No. AE 13 TAR 2023 dated 27.09.2024; (o) The present settlement shall not be considered either as a precedent or a policy decision or a proposal binding on KNNL for cases, other than the present matter referred to Mediation. The parties to this agreement have entered into this compromise voluntarily, on their own volition, without any coercion or misrepresentation and the contents of this agreement have been explained to and understood by the Appellant/s(Claimant/s) in vernacular as well." 7. The terms of the Mediation Agreement have been accepted by the parties. The Mediation Agreement not being opposed to any provisions of law, same is taken on record. Accordingly, the present appeal is disposed of in terms of the aforesaid Mediation Agreement. - 8 - HC-KAR NC: 2025:KHC-K:2770 MSA No. 200055 of 2016 8. Sri. Mallaha Rao K, learned Additional Advocate General for the respondent-State and learned counsel for respondent-KNNL submit that since the "Personal Deposit Account" which is opened in the name of the Chief Accounts Officer-KNNL, Dharwad, for the purpose of disbursing the compensation amount is subject matter of writ petition in W.P.(C) No.100913/2025, necessary steps will be taken to either vacate or modify the aforesaid interim order to the extent of subject matter of this appeal and that if in the event of any further impediment in implementing the terms of the Mediation Agreement, appropriate alternate arrangements will be made to comply with the terms of the Mediation Agreement. Submission is taken record as an undertaking to this Court. 9. It is made clear that in the event of any failure on the part of respondent-KNNL, the appellant/claimant would be at liberty to seek enforcement and execution of this order in accordance with law. In such an event, appellant/claimant would also be entitled for all the statutory benefits including interest till realization. - 9 - HC-KAR NC: 2025:KHC-K:2770 MSA No. 200055 of 2016 10. This Court places on record its appreciation of the earnest efforts made by Hon'ble Justice A.V.Chandrashekar, former Judge, High Court of Karnataka, Sri. K. Shashi Kiran Shetty, learned Advocate General, Sri. K.Mallaha Rao, learned Additional Advocate General for the respondent-State, Smt.T.Maya, learned Additional Government Advocate for respondent No.1, Ms.L.Mohini Bhat and Ms.Hetu Arora Sethi, Sri. Sanjeev Kumar Patil, Sri. M.Sudarshan, Sri.Abhimanyu, learned counsel for respondent-KNNL, Sri.Harshavardhan R. Malipatil, Sri. Nagaraj Patil, Sri. Shivashankar H. Manur, learned counsel for the appellants, as well as Sri. Rajesh, Managing Director of KNNL, Sri. Girish, Secretary of KNNL in amicably resolving the dispute. SD/- (M.G.S.KAMAL) JUDGE RL List No.: 48 Sl No.: 0