- 1 - HC-KAR NC: 2025:KHC:44906 MSA No. 41 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MRS. JUSTICE M G UMA MISCELLANEOUS SECOND APPEAL NO. 41 OF 2023 (LA) BETWEEN: GUDDANNA S/O YAROBAIAH, SINCE DEAD BY HIS LRS DODDA PAPAIAH S/O LATE GUDDANNA SINCE DEAD BY HIS LR'S 1. SRI GUNDA BORAIAH S/O LATE DODDA PAAPIAH, (GRAND SON OF GUDDANNA) AGED ABOUT 29 YEARS, 2. SRI OBAIAH S/O LATE GUDDANNA, AGED ABOUT 60 YEARS, 3. BORAIAH S/O LATE GUDDANNA, AGED ABOUT 57 YEARS, 4. SRI G. OBAIAH S/O LATE GUDDANNA, AGED ABOUT 45 YEARS, 5. SRI BASANNA S/O LATE GUDDANNA, AGED ABOUT 40 YEARS, AGRICULTURISTS AND COOLIES ALL ARE AGRICULTURISTS AND COOLIES Digitally signed by PRASHANTH N V Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:44906 MSA No. 41 of 2023 R/O NERALAHALLY VILLAGE, KASABA HOBLI, MOLAKALMURU TALUK, CHITRADURGA DISTRICT - 577 529. …APPELLANTS (BY SRI. GOPALAKRISHNAMURTHY C.,ADVOCATE) AND: 1. THE SPECIAL LAND ACQUISITION OFFICER CHITRADURGA DISTRICT - 577 529. 2. THE DEPUTY CHIEF ENGINEER (CONSTRUCTION 1) SOUTH-WESTERN RAILWAY, CLUB ROAD, KESHWAPUR, HUBLI, DHARAWAD DISTRICT - 580 023. PRESENTLY OFFICE IS LOCATED AT CHIEF ADMINISTRATIVE OFFICER SOUTH-WESTERN RAILWAY NO 18, MILLERS ROAD, BENGALURU - 560 046. …RESPONDENTS (BY SRI. GOPALAKRISHNA SOODI, AGA FOR R1 & R2) THIS MFA IS FILED UNDER SECTION 54(2) OF THE LAND ACQUISITION ACT, 1894 AGAINST THE ORDER DATED 31.10.2022 PASSED IN MA.NO(L.A.C.)4/2018 AND M.A.(L.A.C)5/2018 ON THE FILE OF THE PRL. DISTRICT AND SESSIONS JUDGE, CHITRADURGA, BOTH THE APPEALS ARE ALLOWED WITH COSTS. THIS APPEAL, COMING ON FOR FURTHER HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE M G UMA - 3 - HC-KAR NC: 2025:KHC:44906 MSA No. 41 of 2023 ORAL JUDGMENT The appellants being the claimants are seeking modification of the judgment and award dated 31.10.2022 passed in M.A. (LAC) 4/2018 and M.A. (LAC) 5/2018 on the file of the learned Principal District and Sessions Judge, Chitradurga (hereinafter referred to as 'the First Appellate Court'). 2. For the sake of convenience, the parties shall be referred to as per their rank and status before the First Appellate Court. 3. Brief facts of the case are that, the appellants being the owners of the land in question, which was acquired as per the Notification issued by respondent No.1 sought for reference of the award and accordingly, LAC No.213/2002 and LAC No.220/2002 came to be registered before the learned Civil Judge (Sr.Dvn.), Challakere (hereinafter referred to as 'the Reference Court'). The Reference Court allowed the Reference and fixed compensation at Rs.9,600/- per acre. Being aggrieved by the same, the claimants have preferred M.A.(LAC) 4/2018 and M.A. (LAC) 5/2018 before the First Appellate Court. - 4 - HC-KAR NC: 2025:KHC:44906 MSA No. 41 of 2023 However, these appeals came to be filed after delay of over 10 years and 8 months i.e., to be precise after 3908 days. The First Appellate Court after considering the contentions of both the parties, allowed both the appeals under common judgment modifying the award passed by the Reference Court by fixing the compensation at Rs.25,200/- per acre along with statutory benefits. However, it disallowed the interest for the period of delay caused in preferring the appeal. Being aggrieved by the same, claimants are before this Court. 4. Heard Sri. Gopalakrishnamurthy, learned counsel for the appellants and Sri. Gopalakrishna Soodi, learned counsel for the respondents. Perused the materials including the Trial Court records. 5. Learned counsel for the appellants contended that in MSA No.66/2019 and MSA No.81/2019, the claimants under same Notification have preferred the appeal and there was delay in preferring the first appeal. Even then, the claimants were granted interest even for the period of delay caused in preferring the appeal. Under such circumstances, the appellants are entitled for the interest for the delayed period. He has - 5 - HC-KAR NC: 2025:KHC:44906 MSA No. 41 of 2023 drawn the attention of the Court to the order dated 25.08.2021 passed in MSA No.66/2018 wherein, the Coordinate Bench of this Court held in paragraphs 6 and 7 as under: "It is to be noticed that in MSA No.81/2019, this Court while condoning the delay of 3658 days did not waived the interest and the said order has been accepted by the State Government. In view of the matter, the request of the learned Government Advocate for waiving of interest cannot be acceded to." 6. Pursuant to the order of the Coordinate Bench of this Court in MSA No.66/2019, the Review Petition No.2/2024 was filed before the Reference Court, which came to be allowed holding that the claimant therein is entitled for the interest at the rate of 9% per annum on the award amount from the date of preliminary Notification for a period of one year. Thereafter, he is entitled for interest at the rate of 15% per annum till the date of deposit of the entire amount. 7. Learned counsel for the appellants contended that these orders were never challenged by the Government till date - 6 - HC-KAR NC: 2025:KHC:44906 MSA No. 41 of 2023 and hence, the same have attained finality. Accordingly, he prays for granting similar benefit to the appellants in the present case. 8. Learned Additional Government Advocate opposing the submissions made by the learned counsel for the appellants contended that the Government has not yet paid the interest as ordered. However, he seeks accommodation to verify as to whether the Government has challenged the order in MSA No.66/2019, MSA No.81/2019 and the order passed in the Review Petition No.2/2024. 9. Learned Additional Government Advocate further submitted that, after addressing the arguments before this Court on 29.10.2025, the respondent has preferred an appeal in M.A.No.23/2025 on 04.11.2025 before the learned Principal District and Sessions Judge, Chitradurga challenging the order passed by the learned Civil Judge and JMFC, Molakalmuru in Review Petition No.2/2024. He further submits that even an application is filed to recall the order dated 15.11.2024 passed by this Court. Under such circumstances, the appellants are not - 7 - HC-KAR NC: 2025:KHC:44906 MSA No. 41 of 2023 entitled to rely upon the orders passed in R.P.No.2/2024. Accordingly, he prays for dismissal of the appeal. 10. In view of the rival contentions urged by the learned counsel for both the parties, the point that would arise for my consideration is "Whether the appellants have made out any grounds to allow the appeal?" My answer the above point in the 'Affirmative' for the following: REASONS 11. In R.P.No.2/2024, the First Appellate Court formed an opinion that the petitioner/claimant therein is entitled for interest at the rate of 9% per annum, and the award amount from the date of preliminary Notification for a period of one year and thereafter entitled for interest at the rate of 15% per annum till the date of payment. The said order was passed on 28.06.2025. The same was never challenged till yesterday i.e., 04.11.2025. It is pertinent to note that on 29.10.2025, the Court has heard the arguments addressed by the learned - 8 - HC-KAR NC: 2025:KHC:44906 MSA No. 41 of 2023 counsel for the appellants and learned AGA for the respondents. Learned AGA took time to get instructions as to whether the interest was paid as ordered in the connected matter, and whether the Government has challenged the order passed in MSA Nos.66/2019 and 81/2019 and also the order in R.P.No.2/2024. It is only thereafter it appears that the Government has challenged the order passed in R.P.No.2/2024. The same cannot be taken into consideration at this stage to deny the entitlement of interest to the appellants. 12. It is pertinent to note that the order dated 25.08.2021 in MSA No.66/2019 was passed by the Co-ordinate Bench of this Court, based on the order passed by the Co- ordinate Bench of this Court in MSA No.81/2019, dated 12.04.2021. 13. Admittedly, the said order is also not challenged by Government till date. Under such circumstances, I do not find any merits in the contention raised by the respondents. Appellants being the claimants are entitled for parity with that of the other claimants, who got the benefits inspite of there being delay, after condoning the same. Hence, I answer the - 9 - HC-KAR NC: 2025:KHC:44906 MSA No. 41 of 2023 above points in the affirmative and proceed to pass the following: ORDER (i). Appeal is allowed. (ii). The judgment and award dated 31.10.2022 passed in M.A.(LAC) No.4 and 5/2018, before the learned Prl. District and Sessions Judge, Chitradurga is modified to the extent as stated below:- (a) The claimants are entitled for all the statutory benefits including the interest, at the rate as provided under the law, even for the period of delay in preferring the appeal. (iii) The other portion of the judgment shall remain as it is. SD/- (M G UMA) JUDGE BH/RL List No.: 1 Sl No.: 43