- 1 - HC-KAR NC: 2025:KHC-D:10000-DB MFA No. 100836 of 2018 C/W MFA No. 100834 of 2018 MFA No. 100835 of 2018 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 11TH DAY OF AUGUST, 2025 PRESENT THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL M.F.A. NO.100836 OF 2018 C/W M.F.A. NO.100834 OF 2018 AND M.F.A. NO.100835 OF 2018 (LAC) IN M.F.A. NO.100836 OF 2018 BETWEEN: THE DEPUTY CHIEF ENGINEER, CONSTRUCTION (CENTRAL), SOUTH WESTERN RAILWAY, KESHWAPUR, HUBBALLI-580020, DIST:DHARWAD. - APPELLANT (BY SRI. MALLIKARJUN S. HIREMATH, ADVOCATE) AND: 1. THE PRESIDENT. AROGYA NAGAR GRUHA NIRMAAN, SAHAKARI SANGH (REGD), DHARWAD-580007. 2. THE ASSISTANT COMMISSIONER. AND LAND ACQUISITION OFFICER, DHARWAD-580001. 3. THE PRINCIPAL SECRETARY, REVENUE DEPARTMENT, M. S. BUILDING, BENGALURU-560001. - RESPONDENTS (BY SRI. ARUN L. NEELOPANT, ADVOCATE FOR R1; SRI. V. S. KALASURMATH, AGA FOR R2 AND R3) Digitally signed by VINAYAKA B V Location: High Court of Karnataka, Dharwad Bench - 2 - HC-KAR NC: 2025:KHC-D:10000-DB MFA No. 100836 of 2018 C/W MFA No. 100834 of 2018 MFA No. 100835 of 2018 THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 54(1) OF LAND ACQUISITION ACT, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 23.03.2017 PASSED BY THE COURT OF THE IIND ADDITIONAL SENIOR CIVIL JUDGE, DHARWAD, IN L.A.C. NO.159/2011 AND CONSEQUENTLY REJECT THE REFERENCE PETITION, IN THE INTEREST OF JUSTICE. IN M.F.A. NO. 100834 OF 2018 BETWEEN: THE DEPUTY CHIEF ENGINEER, CONSTRUCTION (CENTRAL), SOUTH WESTERN RAILWAY, KESHWAPUR, HUBBALLI-580020, DIST:DHARWAD. - APPELLANT (BY SRI. MALLIKARJUN S. HIREMATH, ADVOCATE) AND: 1. THE PRESIDENT. AROGYA NAGAR GRUHA NIRMAAN, SAHAKARI SANGH (REGD), DHARWAD-580007. 2. THE ASSISTANT COMMISSIONER. AND LAND ACQUISITION OFFICER, DHARWAD-580001. 3. THE PRINCIPAL SECRETARY, REVENUE DEPARTMENT, M. S. BUILDING, BENGALURU-560001. - RESPONDENTS (BY SRI. ARUN L. NEELOPANT, ADVOCATE FOR R1; SRI. V. S. KALASURMATH, AGA FOR R2 AND R3) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 54(1) OF LAND ACQUISITION ACT, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 23.03.2017 PASSED BY THE COURT OF THE IIND ADDITIONAL SENIOR CIVIL JUDGE, DHARWAD, IN L.A.C. NO.07/2013 AND CONSEQUENTLY REJECT THE REFERENCE PETITION, IN THE INTEREST OF JUSTICE. - 3 - HC-KAR NC: 2025:KHC-D:10000-DB MFA No. 100836 of 2018 C/W MFA No. 100834 of 2018 MFA No. 100835 of 2018 IN M.F.A. NO. 100835 OF 2018 BETWEEN: THE DEPUTY CHIEF ENGINEER, CONSTRUCTION (CENTRAL), SOUTH WESTERN RAILWAY, KESHWAPUR, HUBBALLI-580020, DIST:DHARWAD. …APPELLANT (BY SRI. MALLIKARJUN S. HIREMATH, ADVOCATE) AND: 1. THE PRESIDENT. AROGYA NAGAR GRUHA NIRMAAN, SAHAKARI SANGH (REGD), DHARWAD-580007. 2. THE ASSISTANT COMMISSIONER. AND LAND ACQUISITION OFFICER, DHARWAD-580001. 3. THE PRINCIPAL SECRETARY, REVENUE DEPARTMENT, M. S. BUILDING, BENGALURU-560001. - RESPONDENTS (BY SRI. ARUN L. NEELOPANT, ADVOCATE FOR R1; SRI. V. S. KALASURMATH, AGA FOR R2 AND R3) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 54(1) OF LAND ACQUISITION ACT, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 23.03.2017 PASSED BY THE COURT OF THE IIND ADDITIONAL SENIOR CIVIL JUDGE, DHARWAD, IN L.A.C. NO.09/2013 AND CONSEQUENTLY REJECT THE REFERENCE PETITION, IN THE INTEREST OF JUSTICE. THESE MISCELLANEOUS FIRST APPEALS, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL - 4 - HC-KAR NC: 2025:KHC-D:10000-DB MFA No. 100836 of 2018 C/W MFA No. 100834 of 2018 MFA No. 100835 of 2018 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL) These appeals are filed by the appellant-beneficiary of the acquisition, i.e., The Deputy Chief Engineer, Construction (Central), South Western Railway, Hubballi, challenging the judgment and award dated 23.03.2017 passed in L.A.C. No. 159/2011, L.A.C. No. 07/2013 and L.A.C. No. 09/2013 respectively by the learned II Addl. Senior Civil Judge, Dharwad. 2. We have heard Sri Mallikarjun S. Hiremath, learned counsel appearing for the appellant, Sri Arun L. Neelopant, learned counsel for respondent No.1 and Sri V.S. Kalasurmath, learned counsel for respondents No.2 and 3 and perused the records. 3. Learned counsel for the appellant submits that the appeal in M.F.A. No. 101329/2018 filed by the appellant- beneficiary was partly allowed by the learned Single Judge vide order dated 18.11.2020 to the extent of correcting - 5 - HC-KAR NC: 2025:KHC-D:10000-DB MFA No. 100836 of 2018 C/W MFA No. 100834 of 2018 MFA No. 100835 of 2018 the legal error committed by the Reference Court in awarding additional 12% market value contrary to Sec. 23(1-A) of the Land Acquisition Act, 1894 (for short, the ‘Act’) and also interest at the rate of 9% and 15% contrary to Sec. 34 of the Act. Hence he seeks to allow these appeals in terms of the order of the learned Single Judge. 4. Per contra, learned counsel appearing for respondent No.1-claimant supports the order of the Reference Court and submits that if there is any error in the judgment, the same will be looked into by the executing Court at the time of execution. The appeals are devoid of merit and he seeks to dismiss the appeals. 5. We have given our anxious consideration to the submissions of both sides. 6. The operative portion of the order of the Reference Court is as under: “The Reference application filed U/s 18 of the L.A. Act is allowed in part. - 6 - HC-KAR NC: 2025:KHC-D:10000-DB MFA No. 100836 of 2018 C/W MFA No. 100834 of 2018 MFA No. 100835 of 2018 The claimant is entitled for compensation at the rate of Rs.7,27,095/- per gunta. The claimant is entitled for 30% solatium on the above referred market value U/s 23(2) of the L.A. Act. The claimant is entitled for additional amount at the rate of 12% p.a. on such market value from the date of 4(1) notification to till the date of award as per Sec. 23(1-A) of the L.A. Act. The claimant is entitled for interest at the rate of 9% p.a. for the 1st year and thereafter at the rate of 15% p.a. on such enhanced amount of compensation from the date of 4(1) notification or from the date of taking possession of the acquired land whichever is earlier till the deposit of the compensation amount in the Court. Amount paid already to be deducted and adjusted. The respondents shall pay or deposit the above amount within three months from the date of this order.” 7. The order of the Reference Court makes it clear that it had awarded 12% additional market value from the date of preliminary notification issued u/S 4(1) of the Act till the date of passing of the award and further held that the - 7 - HC-KAR NC: 2025:KHC-D:10000-DB MFA No. 100836 of 2018 C/W MFA No. 100834 of 2018 MFA No. 100835 of 2018 claimant is entitled for interest at the rate of 9% p.a. for one year and thereafter at the rate of 15% p.a. on such enhanced amount and compensation from the date of notification u/S 4(1) of the Act or from the date of taking possession of the acquired land, whichever is earlier, till the date of deposit in the Court. The aforesaid order of the Reference Court is contrary to Sec. 23(1-A) and Section 34 of the Act. 8. The claimants would be entitled to additional market value at 12% p.a. commencing from the date of preliminary notification u/S 4(1) of the Act in respect of the land in question till taking possession or passing of the award, whichever is earlier. In the case on hand, taking of possession is prior to passing of the award, i.e., date of preliminary notification is 09.01.2009, date of taking possession is 31.01.2010 and date of passing award is 11.06.2010. Hence, claimants would be entitled to additional market value of 12% p.a. from the date of preliminary notification till taking of the possession. - 8 - HC-KAR NC: 2025:KHC-D:10000-DB MFA No. 100836 of 2018 C/W MFA No. 100834 of 2018 MFA No. 100835 of 2018 Similarly, the claimants would be entitled to interest on the compensation amount at the rate of 9% p.a. from the date of taking possession till one year and thereafter 15% on the compensation amount till the deposit is made. 9. The learned Single Judge taking note of the same has passed the order at paragraph Nos.9 and 10 as under: “With regard to the submissions made by the learned counsel for the beneficiary that the reference Court has granted additional market value at the rate of 12% contrary to section 23(1A) of the Land Acquisition Act and also interest contrary to section 34 of the Land Acquisition Act has to be accepted. The claimant is entitled for admissible statutory benefits and interest as provided under the Land Acquisition Act. Accordingly, the appeal is allowed in part. The impugned judgment and award passed by the reference Court is modified. The market value of the land in question is fixed at Rs.7,27,095/- per gunta with all admissible statutory benefits and interests as provided under the provisions of the Land Acquisition Act.” - 9 - HC-KAR NC: 2025:KHC-D:10000-DB MFA No. 100836 of 2018 C/W MFA No. 100834 of 2018 MFA No. 100835 of 2018 10. In view of the aforesaid order passed by the learned Single Judge, the instant appeals are allowed in part holding that the claimants are entitled to additional market value of 12% p.a. as per Sec. 23(1-A) from 09.01.2009 to 31.01.2010 and interest at the rate of 9% from 31.01.2010 for a period of one year and 15% p.a. till the deposit of compensation is made as per Sec. 34 of the Act. Accordingly appeals are allowed in part. Pending IAs also stand disposed of. Sd/- (S.SUNIL DUTT YADAV) JUDGE Sd/- (VIJAYKUMAR A.PATIL) JUDGE BVV /CT-AN List No.: 1 Sl No.: 17