- 1 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF MARCH, 2025 PRESENT THE HON'BLE MRS. JUSTICE ANU SIVARAMAN AND THE HON'BLE MR. JUSTICE RAJESH RAI K MISCELLANEOUS FIRST APPEAL NO. 5025 OF 2019 (LAC) C/W MISCELLANEOUS FIRST APPEAL NO. 3108 OF 2019 MISCELLANEOUS FIRST APPEAL NO. 4920 OF 2019 MISCELLANEOUS FIRST APPEAL NO. 4934 OF 2019 MISCELLANEOUS FIRST APPEAL NO. 5023 OF 2019 MISCELLANEOUS FIRST APPEAL NO. 5028 OF 2019 MISCELLANEOUS FIRST APPEAL NO. 7469 OF 2019 (LAC) IN MFA No. 5025/2019: BETWEEN: BHABHA ATOMIC RESEARCH CENTRE RARE MATERIALS PROJECT RATNAHALLI, YELAWALA HOBLI MYSURU TALUK REP. BY ITS ADMINSTRATIVE OFFICER MR. TAPAN KUMAR BOSE …APPELLANT (BY SRI. UNNIKRISHNAN M., ADVOCATE) AND: 1. SMT. PREMA N. RAO W/O NARAYANA RAO R/AT. No.109/17, OMKAR 7TH MAIN, 6TH STAGE MAHAGANAPATHI NAGAR RAJAJINAGAR, BENGALURU Digitally signed by CHANNEGOWDA PREMA Location: High Court of Karnataka - 2 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS 2. THE ASSISTANT COMMISSIONER HUNSUR SUB DIVISION HUNSUR AND SPECIAL LAO HUNSUR …RESPONDENTS (BY SRI. SHANKARANARAYANA BHAT, ADVOCATE FOR R1; SRI. G.S. ARUNA, HCGP FOR R2) THIS MFA IS FILED U/S 54(1) OF THE LAND ACQUISITION ACT, 1894, AGAINST THE JUDGMENT AND AWARD DATED 18.09.2018, PASSED IN LAC. No.233/2012, ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE & JMFC, HUNSUR, ALLOWING THE REFERENCE PETITION FILED U/SEC.18 OF THE LAND ACQUISITION ACT AND ETC. IN MFA NO. 3108/2019: BETWEEN: BHABHA ATOMIC RESEARCH CENTRE RARE MATERIALS PROJECT RATNAHALLI, YELAWALA HOBLI MYSURU TALUK-570 001 ...APPELLANT (BY SRI. UNNIKRISHNAN M., ADVOCATE) AND: 1. SMT. P. SHYAMALA W/O LATE BALAKRISHNAN AGED ABOUT 75 YEARS R/AT. KRISHNA NILAYA 2ND CROSS BANDIGOWDA LAYOUT MANDYA-571 401 2. THE ASSISTANT COMMISSIONER HUNSUR SUB-DIVISION, HUNSUR AND SPECIAL LAO HUNSUR-571 105 ...RESPONDENTS (BY SRI. CHANDRASHEKAR H.B., ADVOCATE FOR R1; - 3 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS SRI. G.S. ARUNA, HCGP FOR R2) THIS MFA IS FILED U/S. 54(1) OF THE LAND ACQUISITION ACT, 1894, AGAINST THE JUDGMENT AND AWARD DATED DATED 28.07.2018, PASSED IN LAC. No.26/2018 (LAC.No.237/2012), ON THE FILE OF THE SENIOR CIVIL JUDGE AND JMFC, PERIYAPATNA, PARTLY ALLOWING THE REFERENCE PETITION FILED U/SEC.18 OF THE LAND ACQUISITION ACT AND ETC. IN MFA NO. 4920/2019: BETWEEN: BHABHA ATOMIC RESEARCH CENTRE RARE MATERIALS PROJECT RATNAHALLI, YELAWALA HOBLI MYSURU TALUK-570 001 REP. BY ITS ADMINISTRATIVE OFFICER ...APPELLANT (BY SRI. UNNIKRISHNAN M., ADVOCATE) AND: 1. SRI. S. CHANDRAMOULI S/O B. SIDDEGOWDA R/O. MIG 19, KHB COLONY KUVEMPUNAGAR MANDYA-571 401 2. THE ASSISTANT COMMISSIONER HUNSUR SUB-DIVISION HUNSUR AND SPECIAL LAO HUNSUR-571 105 ...RESPONDENTS (BY SRI. SHANKARANARAYANA BHAT N., ADVOCATE FOR R1; SRI. G.S. ARUNA, HCGP FOR R2) THIS MFA IS FILED U/S 54(1) OF LAND ACQUISITION ACT, 1984, AGAINST THE JUDGMENT AND AWARD DATED 18.09.2018 PASSED IN LAC.No.242/2012 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE AND J.M.F.C., HUNSUR, - 4 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS ALLOWING THE REFERENCE PETITION UNDER SECTION 18 OF THE LAND ACQUISITION ACT AND ETC. IN MFA NO. 4934/2019: BETWEEN: BHABHA ATOMIC RESEARCH CENTRE RARE MATERIALS PROJECT RATNAHALLI, YELAWALA HOBLI MYSURU TALUK-570 001 REP. BY ITS ADMINISTRATIVE OFFICER MR. TAPAN KUMAR BOSE ...APPELLANT (BY SRI. UNNIKRISHNAN M., ADVOCATE) AND: 1. SMT. RITA HARISH W/O N.B. HARISH R/O. No.581, DIWAN ROAD LAKSHMIPURAM MYSURU 2. THE ASSISTANT COMMISSIONER HUNSUR SUB-DIVISION HUNSUR AND SPECIAL LAO HUNSUR ...RESPONDENTS (BY SRI. T.I. ABDULL, ADVOCATE FOR R1; SRI. G.S. ARUNA, HCGP FOR R2) THIS MFA IS FILED UNDER SECTION 54(1) OF THE LAC ACT, 1894, AGAINST THE JUDGMENT & AWARD DATED 18.09.2018 PASSED IN LAC.No.236/2012 ON THE FILE OF THE PRL. SENIOR CIVIL JUDGE & JMFC, HUNSUR, ALLOWING THE REFERENCE PETITION FILED UNDER SECTION 18 OF LAC ACT AND ETC. - 5 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS IN MFA NO. 5023/2019: BETWEEN: BHABHA ATOMIC RESEARCH CENTRE RARE MATERIALS PROJECT RATNAHALLI, YELAWALA HOBLI MYSURU TALUK REP. BY ITS ADMINISTRATIVE OFFICER MR. TAPAN KUMAR BOSE ...APPELLANT (BY SRI. UNNIKRISHNAN M., ADVOCATE) AND: 1. SRI. N.B. HARISH S/O N.B. BHEEMAIAH No.581, DEWAN ROAD LAKSHMIPURAM MYSURU 2. THE ASSISTANT COMMISSIONER HUNSUR SUB-DIVISION HUNSUR AND SPECIAL LAO, HUNSUR ...RESPONDENTS (BY SRI. T.I. ABDULLA, ADVOCATE FOR R1; SRI. G.S. ARUNA, HCGP FOR R2) THIS MFA IS FILED U/S. 54(1) OF THE LAND ACQUISITION ACT, 1894, AGAINST THE JUDGMENT AND AWARD DATED 18.09.2018 PASSED ON LAC No.240/2012 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE & JMFC, HUNSUR, ALLOWING THE REFERENCE FOR COMPENSATION AND ETC. IN MFA NO. 5028/2019: BETWEEN: BHABHA ATOMIC RESEARCH CENTRE RARE MATERIALS PROJECT RATNAHALLI, YELAWALA HOBLI MYSURU TALUK - 6 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS REP. BY ITS ADMINISTRATIVE OFFICER MR. TAPAN KUMAR BOSE ...APPELLANT (BY SRI. UNNIKRISHNAN M., ADVOCATE) AND: 1. SRI. R. SRIPATHI S/O U.K. RAMAKRISHNAIAH R/AT. 8 & 9, 7TH CROSS BHUVANESHWARI NAGAR DASARAHALLI, HEBBAL BENGALURU 2. THE ASSISTANT COMMISSIONER HUNSUR SUB-DIVISION HUNSUR AND SPECIAL LAO HUNSUR ...RESPONDENTS (BY SRI. N. SHANKARANARAYANA BHAT, ADVOCATE FOR R1; SRI. G.S. ARUNA, HCGP FOR R2) THIS MFA IS FILED U/S 54(1) OF LAND ACQUISITION ACT, 1894, AGAINST THE JUDGMENT AND AWARD DATED 18.09.2018 PASSED IN LAC.No.234/2012 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE AND J.M.F.C., HUNSUR, ALLOWING THE REFERENCE PETITION FILED UNDER SECTION 18 OF THE LAND ACQUISITION ACT AND ETC. IN MFA NO. 7469/2019: BETWEEN: BHABHA ATOMIC RESEARCH CENTRE RARE MATERIALS PROJECT RATNAHALLI, YELAWALA HOBLI MYSURU TALUK ...APPELLANT (BY SRI. UNNIKRISHNAN M., ADVOCATE) - 7 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS AND: 1. SRI. H.N. NINGEGOWDA S/O NINGEGOWDA HIMMIGE VILLAGE SONAGANAHALLI POST KOTHATHI HOBLI MANDYA 2. THE CHIEF SECRETARY GOVERNMENT OF KARNATAKA VIDHANA SOUDHA BENGALURU-1 3. THE ASSISTANT COMMISSIONER HUNSUR SUB-DIVISION HUNUSR ...RESPONDENTS (BY SRI. SHANKARANARAYANA BHAT N., ADVOCATE FOR R1; SRI. G.S. ARUNA, HCGP FOR R2 & R3) THIS MFA IS FILED UNDER SECTION 54(1) OF LAND ACQUISITION ACT, 1894, AGAINST THE JUDGMENT DATED 28.09.2018 PASSED IN LAC.No.8/2013 ON THE FILE OF THE PRL. SENIOR CIVIL JUDGE AND JMFC, HUNSUR, ALLOWING THE REFERENCE MADE UNDER SECTION 18 OF THE LAND ACQUISITION ACT AND ETC. THESE APPEALS, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE ANU SIVARAMAN and HON'BLE MR. JUSTICE RAJESH RAI K - 8 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS ORAL JUDGMENT (PER: HON'BLE MRS. JUSTICE ANU SIVARAMAN) MFA Nos.3108/2019, 5025/2019, 4920/2019, 4934/2019, 5023/2019, 5028/2019 and 7469/2019 arise from the order passed by the reference Court in LAC Nos.26/2018 (LAC No.237/2012), 233/2012, 242/2012, 236/2012, 240/2012, 234/2012 and 8/2013 dated 28.07.2018, 18.09.2018, 18.09.2018, 18.09.2018, 18.09.2018, 18.09.2018 and 28.09.2018 respectively. 2. It is submitted by the learned counsel appearing for the appellant that the acquisition in question was initiated by a Preliminary Notification on 15.03.2008. Final Notification was issued on 05.06.2009 and possession was taken on 17.10.2011. It is contended that an award was passed fixing an amount of Rs.30/- per sq.ft. as land value in respect of the Notification in question. It is contended that the property is a large tract of agricultural land and that the reference Court has seriously erred in considering the sale deed dated 16.07.2007 in respect of a small item - 9 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS of property and fixing the market value on the basis of the same. 3. It is submitted that the sale deed which was relied on was a concocted document and that the person who had actually sold the land was also a beneficiary of the acquisition and that he had come forward to accept the compensation as a claimant and is the respondent in MFA No.5025/2019. 4. It is further contended that the finding of the reference Court that the land losers are entitled to appreciation of land value at the rate of 10% p.a. from the date of the preliminary notification till the date of the order of the reference Court is completely misconceived and the appreciation given for the land value from the year 2008 to 2018 was legally impermissible and untenable. 5. It is further submitted that grant of interest from the date of Preliminary Notification is also erroneous, - 10 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS since possession was taken only three years thereafter on 17.10.2011 and interest could have been granted only from the date on which, possession was taken. 6. Learned counsel appearing for the respondents would on the other hand, contend that the property was a converted site and that the contention raised that the property was a large tract of agricultural land, is factually incorrect. It is further contended that the land value which was fixed in the award was low and that determination of the market value relying only on the basis of sale statistics was clearly impermissible. 7. It is submitted that the claimants had examined the Special Power of Attorney holder who had produced evidence to show that the market value was fixed at Rs.270/- per sq.ft. It is submitted that the action of the reference Court in having taken note of the sale deeds produced and given permissible appreciation should not be interfered with by this Court. - 11 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS 8. It is further contended that there were several other appeals preferred by the appellant herein in identical matters, which have been settled by the appellant with the respective landholders and those findings of the reference Court with regard to the land value have not been interfered with in an appeal. It is therefore contended that the respondents are entitled to land value as fixed by the reference Court. 9. Having considered the contentions advanced, we notice that it is an admitted fact that the preliminary notification was issued on 15.03.2008. The possession of the property in question taken on 17.10.2011 is also not in dispute. 10. Section 28 of the Land Acquisition Act, 1894 ('Act of 1894' for short) specifically provides that interest is to be paid on the excess compensation at the rate of 9% p.a. from the date on which, possession of the land was - 12 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS taken till the date of payment of such excess into the Court. 11. It is also clear that the value of the land is to be ascertained as on the date of issuance of preliminary notification and that there can be no appreciation granted by the reference Court for the land value after such date. In the instant case, it appears that a document has been produced showing the land value of the property in question as Rs.270/- per sq.ft. The date of the sale deed was 16.07.2007. The preliminary notification in the instant case was one issued on 15.03.2008. 12. Though the learned counsel for the appellant submits that the document relied on was a concocted document and was executed only for the purpose of claiming compensation in this matter, we are of the opinion that in view of the fact that a proximate document had been placed on record, which was relied on by the reference Court, the land value as shown in the said - 13 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS document could have been taken into account by the reference Court. However, we are of the clear view that the finding of the reference Court that appreciation at the rate of 10% p.a. has to be made from the date of preliminary notification till the date of the order of the reference Court has no support whatsoever in any of the statutory provisions. The land losers are entitled to solatium and interest on the amount fixed as land value with reference to the date of the preliminary notification. However, fixing of the land value by granting appreciation after the date of the preliminary notification till the date of the order of the reference Court is perse illegal. 13. Further, it appears that interest has been granted from the date of preliminary notification on the enhanced amounts as well. Going by the provisions of Section 28 of the Act of 1894, interest on the enhanced amounts is available from the date of taking possession of the property. - 14 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS 14. In the above factual situation, we are of the opinion that the appeals are liable to succeed in-part. The directions issued by the reference Court granting appreciation on the land value from 15.03.2008 to the date of passing of the order of the reference Court that is 28.07.2018 are unsupported by any provisions of law. The said direction as well as the direction for grant of interest from the date of the preliminary notification shall stand set aside. The land value shall be fixed at Rs.270/- per sq.ft. as on the date of the preliminary notification. However, the interest as provided under Section 28 of the Act of 1894 shall be limited from the date of taking possession that is 17.10.2011. 15. The Miscellaneous First Appeals stand disposed of as above. - 15 - NC: 2025:KHC:9056-DB MFA No. 5025 of 2019 C/W MFA No. 3108 of 2019 MFA No. 4920 of 2019 AND 4 OTHERS All pending applications, stand disposed of. Sd/- (ANU SIVARAMAN) JUDGE Sd/- (RAJESH RAI K) JUDGE PN List No.: 1 Sl No.: 34