- 1 - HC-KAR NC: 2025:KHC:35500 WP No. 3169 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 3169 OF 2024 (LA-KIADB) BETWEEN: NATARAJ G.U., S/O LATE SHRI G.C.UMAPATHI AGED ABOUT 47 YEARS RESIDING AT 253B S.BETTY ST GILBERT AZ 85295 UNITED STATES OF AMERICA. &PETITIONER (BY SRI ARUN GOVINDRAJ, ADVOCATE) AND: 1. KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD HEADQUARTERS AT NUMBER 49, 4TH AND 5TH FLOORS, EAST WING MINERAL BHAVAN, RACE COURSE ROAD BENGALURU 3 560 001. REPRESENTED BY ITS Digitally signed by NAGAVENI Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:35500 WP No. 3169 of 2024 CHIEF EXECUTIVE OFFICER AND EXECUTIVE MEMBER 2. SPECIAL LAND ACQUISITION OFFICER KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD SITE NO. CA(1-B), GROUND FLOOR KARURU KAIGARIKE PRADESHA OPPOSITE DISTRICT OFFICE, P.B ROAD DAVANAGERE 3 577 006. &RESPONDENTS (BY MS. MONICA PATIL, ADVOCATE FOR R1 AND R2; SRI N.PRAVEEN KUMAR, ADVOCATE FOR R3) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE LETTER OF CONFIRMATION DTD 18.12.2023, BEARING NO.KIADB/LAQ-1(DA)/MAY-KA/242/2023-24, ISSUED BY THE R2, WITHHOLDING 1/3RD OF THE COMPENSATION AWARDED FOR ACQUISITION OF THE SCHEDULE PROPERTY ANNEXURE-E. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:35500 WP No. 3169 of 2024 CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA ORAL ORDER The petitioner is before this Court seeking the following prayer: <a. Issue a Writ of CERTIORARI or any other Writ, direction or order quashing the Letter of Confirmation dated 18.12.2023, bearing No. KIADB/LAQ-1(DA)/MAY-KA/242/2023-24, issued by the second Respondent, withholding 1/3rd of the compensation awarded for acquisition of the Schedule Property [ANNEXURE-E]. b. Issue a Writ of MANDAMUS or any other Writ, direction o7 order directing the second Respondent to release in favour of the Petitioner the withheld amount of 1/3rd of the compensation awarded for acquisition of the Schedule Property [ANNEXURE- E]. c. Such other Writ/s, direction/s, order/s having regard to the facts and circumstances of the case, in the interest of justice and equity.= 2. Heard Sri Arun Govindraj, learned counsel for the petitioner, Ms. Monica Patil, learned counsel for the respondent Nos.1 and 2 and Sri N. Praveen Kumar, learned counsel for the respondent No.3. 3. The parties to the lis are members of the family, barring respondent Nos.1 and 2. The issue shrouds around - 4 - HC-KAR NC: 2025:KHC:35500 WP No. 3169 of 2024 disbursement of compensation. It is not in dispute that the petitioner's property becomes the subject matter of acquisition. The land is acquired by respondent Nos.1 and 2 3 Karnataka Industrial Areas Development Board; compensation is determined; now certain amount is released to the petitioner partially and one third of the compensation is remaining with the Board, on the score that a suit is pending consideration. The suit is instituted by respondent No.3, who is said to be the sister of the petitioner. The petitioner is the recipient of a deed of gift, pursuant to which, the property falls into his share and the said property is the subject matter of acquisition. 4. Learned counsel for the petitioner has produced the suit prayers. They read as follows: <15) Therefore, the plaintiff prays the Hon'ble Court to pass judgment and decree in the case in her favour and against the defendants for the following relief. a) for partition and separate possession of the plaintiffs 1/3rd share in the suit schedule properties by metes and bounds. b) for means profits from date of suit till date of delivery of the possession of the share to plaintiff in suit schedule properties by meters & bounds by holding an enquiry under order 20, Rule 12 of the C.P.C. - 5 - HC-KAR NC: 2025:KHC:35500 WP No. 3169 of 2024 c) The first defendant had gifted the property to second defendant and which is not binding on this plaintiff and it should be treated as null and void which falls to share of the this plaintiff and further direct the defendants to hand over the possession of the plaintiff share. d) For grant of permanent injunction restraining the first defendant and his attorneys or any other persons claiming interest through him, from alienating the suit schedule properties in any manner by them. i.e. by way of sale Gift, Exchange, Mortgage, Lease and bequeath etc. as the same are prejudicial to the rights, interest and the share of plaintiff in the suit schedule properties. e) For court costs and to grant such other relief, or relief as the Hon'ble court deems fit to grant under the circumstances of the case, in the interest of justice.= The prayer in the suit is to annul the gift deed or hold the gift deed not to be binding on respondent No.3 herein and therefore, seeks partition of the property. The said suit is pending adjudication and nearing completion. The amount that is with the Board as on today, is to be paid to the party to the suit, subject to the result of the suit. As the petitioner claims the property on the strength of the gift deed that was executed in favour of him, determination of the gift deed as erroneous or contrary to law or fraud or coercion is yet to be decided by the concerned Court. - 6 - HC-KAR NC: 2025:KHC:35500 WP No. 3169 of 2024 5. In that light, learned counsel for the petitioner submits that pending such determination by the concerned Court, the amount that is withheld by the Board may be released to the petitioner, to which the petitioner submits an affidavit of undertaking that he would return the entire money along with interest, in the event, respondent No.3 - plaintiff would succeed in the suit or abide by any orders that would be passed in the suit. 6. In furtherance of the said submissions, the petitioner has filed an affidavit of such undertaking. The affidavit of undertaking reads as follows: <1. I state that I am the Petitioner in this case and I am well conversant with the facts and circumstances of this case. Hence, I am competent to swear to this affidavit. 2. I state that I have filed this petition seeking quashment of the Letter of Confirmation dated 18.12.2023, bearing No. KIADB/LAQ-1(DA)/MAY- KA/242/2023-24, issued by the second Respondent, withholding 1/3rd of the compensation awarded to me for acquisition of the Schedule Property and for a direction to the second Respondent to release the withheld amount being 1/3rd of the compensation awarded for acquisition of the Schedule Property, in my favour. The averments made in my petition may kindly be treated as a part and parcel of this Affidavit. - 7 - HC-KAR NC: 2025:KHC:35500 WP No. 3169 of 2024 3. I state that my father acquired the Schedule Property by way of Registered Family Settlement dated 12.04.1971. The Schedule Property was gifted to me by my Late father vide Registered Gift Deed dated 12.03.2015. Thereafter, my step sister, i.e. my father's daughter from his second marriage, who is the impleaded third Respondent herein, filed a suit for partition in O.S. No. 45/2016 on the file of the Hon'ble Senior Civil Judge and JMFC, Hiriyur, which is presently pending consideration. The Registered Gift Deed dated 12.03.2025, remains legally and practically unchallenged. Revenue entries pertaining to the Schedule Property stand in my name. 4. As matters stood thus, the second Respondent, acquired the Schedule Property and determined total compensation of Rs. 2,38,00,000/- [Rupees Two Crores and Thirty-Eight Lakhs only], vide Notification No. CI/163/SPQ(E)/2022 dated 12.12.2022, published in the Karnataka State Gazette on 14.12.2022. The acquisition and quantum of compensation remains unchallenged. Be that as it may, at the time of disbursement of compensation, only 2/3rd compensation was released in my favour, while 1/3rd compensation of Rs. 79,33,333/- [Rupees Seventy-Nine Lakhs Thirty-Three Thousand Three Hundred and Thirty-Three only] was withheld by the second Respondent on the ground that the suit for partition filed by the third Respondent in O.S. No. 45/2016 on the file of the Hon'ble Senior Civil Judge and JMFC, Hiriyur was pending. Hence, I was constrained to present this petition. 5. I wherefore pray that the second Respondent be directed to release the portion of the compensation withheld by it, in my favour, being Rs. 79,33,333/- [Rupees Seventy-Nine Lakhs Thirty-Three Thousand Three Hundred and Thirty-Three only]. I hereby state that in the event the third Respondent succeeds in legal proceedings respecting partition of the Schedule Property herein, I will pay the afore said sum of Rs. 79,33,333/- [Rupees Seventy-Nine Lakhs Thirty- Three Thousand Three Hundred and Thirty-Three only] to the third Respondent, along with bank interest on fixed deposits. - 8 - HC-KAR NC: 2025:KHC:35500 WP No. 3169 of 2024 Wherefore, I most respectfully pray that this Hon'ble Court be pleased to allow this petition, as prayed for, in the light of my above undertaking, in the interest of justice and equity. What is stated above is true and correct to the best of my knowledge, belief and information.= The petitioner is said to be residing in United States of America today and has sworn to the said affidavit that he would repay the amount of ¹79,33,333/- at the bank interest rates on fixed deposits, if he does not succeed in the suit. 7. In the light of the said undertaking and to protect the interest of respondent No.3 for the present, I deem it appropriate to accept the said undertaking and direct the Board to consider the representation of the petitioner for release of the remaining amount, which shall, however remain, subject to the undertaking made in the affidavit, as quoted hereinabove. 8. It is made clear that if the petitioner would breach the undertaking, in the event of his failure in the suit, the matter would be viewed very seriously including a direction to the Passport Authorities to take appropriate action in accordance with law. - 9 - HC-KAR NC: 2025:KHC:35500 WP No. 3169 of 2024 9. For the aforesaid reasons, the following: ORDER a. The writ petition stands disposed. b. Respondent Nos.2 and 3 3 Karnataka Industrial Areas Development Board shall now consider the representation of the petitioner bearing in mind the observations made in the course of the order and take steps to release the amount, within eight weeks from the date of receipt of a copy of the order. Ordered accordingly. Sd/- (M.NAGAPRASANNA) JUDGE NVJ List No.: 1 Sl No.: 18 CT:SS