- 1 - HC-KAR NC: 2026:KHC:28876 WP No. 35685 of 2025 C/W WP No. 34653 of 2025 WP No. 35970 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 35685 OF 2025 (LA-RES) C/W WRIT PETITION NO. 34653 OF 2025 (LA-RES) WRIT PETITION NO. 35970 OF 2025 (LA-RES) IN WP No. 35685/2025 BETWEEN: 1. RAMAKRISHNAPPA S/O BASAPPA, AGED ABOUT 70, 2. SIDDAPPA S/O BASAPPA, AGED ABOUT 65 YEARS, THIMMAPPA S/O BASAPPA, DEAD, REPRESENTED BY LR'S 3. MALLAMMA W/O LATE THIMMAPPA, AGED ABOUT 56 YEARS, 4. RAMACHANDRAPPA S/O LATE TIMMAPPA, AGED ABOUT 55 YEARS, 5. MAMATHA D/O LATE THIMMAPPA, AGED ABOUT 48 YEARS, 6. NIRMALA D/O LATE THIMMAPPA, AGED ABOUT 46 YEARS, Digitally signed by HEMALATHA J Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:28876 WP No. 35685 of 2025 C/W WP No. 34653 of 2025 WP No. 35970 of 2025 7. KUBERA S/O LATE THIMMAPPA, AGED ABOUT 45 YEARS, 8. UMESH S/O LATE THIMMAPPA, AGED ABOUT 42 YEARS, PETITIONER NO.1-2 AND 3 TO 8 ARE R/O BASAVANAGANGURU VILLAGE, HOLALUR HOBLI, SHIMOGA TALUK AND DISTRICT-577216. …PETITIONERS (BY SRI. RAJU BHAT, ADVOCATE) AND: 1. SPECIAL LAND ACQUISITION OFFICER UPPER THUNGA PROJECT, SHIMOGA-577201. 2. THE EXECUTIVE ENGINEER, KARNATAKA NIRAVARI NIGAMA NIYAMITA, UPPER THUNGA PROJECT, SHIMOGA-577201. …RESPONDENTS (BY SRI. ADITYA DIWAKAR, ADDITIONAL GOVERNMENT ADVOCATE FOR RESPONDENT NO.1; SRI. PRASHANTHA B.R., ADVOCATE FOR RESPONDENT NO.2) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT RESPONDENT NOS. 1 AND 2 TO MAKE PAYMENT OF COMPENSATION TO THE PETITIONERS AS PER THE JUDGMENT DATED 29/11/2024 PASSED BY THIS HON. COURT IN MFA 2739/2015, WITHOUT DEDUCTING ANY AMOUNT TOWARDS TDS, A CERTIFIED COPY OF THE ORDER DATED 29/11/2024 IS HEREBY PRODUCED AS ANNEXURE-B. - 3 - HC-KAR NC: 2026:KHC:28876 WP No. 35685 of 2025 C/W WP No. 34653 of 2025 WP No. 35970 of 2025 IN WP NO. 34653/2025 BETWEEN: RANGAMMA @ KAMALAMMA AGE: 65 YEARS R/O BASAVANAGANGURU VILLAGE SHIMOGA TALUK AND DISTRICT PIN-577201 ...PETITIONER (BY SRI. RAJU BHAT, ADVOCATE) AND: 1. SPECIAL LAND ACQUISITION OFFICER UPPER THUNGA PROJECT SHIMOGA-577201 2. THE EXECUTIVE ENGINEER KARNATAKA NEERAVARI NIGAM NIYAMITA, UPPER THUNGA PROJECT SHIMOGA-577201 ...RESPONDENTS (BY SRI. ADITYA DIWAKAR, ADDITIONAL GOVERNMENT ADVOCATE FOR RESPONDENT NO.1; SRI. PRASHANTHA B.R., ADVOCATE FOR RESPONDENT NO.2) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE RESPONDENTS TO MAKE PAYMENT OF COMPENSATION AMOUNT AS PER THE ORDER OF THE HON. HIGH COURT OF KARNATAKA AT BENGALURU DATED 12/08/2025 PASSED IN MFA 1189/2021 WITHOUT DEDUCTING ANY AMOUNT TOWARDS TAX DEDUCTION AT SOURCE (TDS). A CERTIFIED COPY OF THE ORDER DATED 12/08/2025 IS HEREBY PRODUCED AS ANNEXURE-A. - 4 - HC-KAR NC: 2026:KHC:28876 WP No. 35685 of 2025 C/W WP No. 34653 of 2025 WP No. 35970 of 2025 IN WP NO. 35970/2025 BETWEEN: 1. GANESH RAO S/O GUNDAPPA, AGED ABOUT 58 YEARS, R/O BASAVANAGANGURU VILLAGE, HOLALURU VILLAGE, SHIMOGA TALUK AND DISTRICT PIN 577201. BASHEER AHMED S/O BAHADUR KHAN, DEAD, REPRESENTED BY HIS LR'S 2. NAZIMA KARADIGAR W/O MOHMAD RAFIQUE D/O BASHEER AHMED, AGED ABOUT 53 YEARS, R/O NO.30, 1ST CROSS, HOSUR HOBLI, HUBLI, DIST. DHARWAD-580001. 3. ZAMEER AHMAD KHAN S/O BASHEER AHMED, AGED ABOUT 43 YEARS, R/O NO.8, 4TH CROSS, N T ROAD TEMPO STAND, SHIVAMOGGA-577201. ...PETITIONERS (BY SRI. RAJU BHAT, ADVOCATE) AND: 1. SPECIAL LAND ACQUISITION OFFICER UPPER THUNGA PROJECT, SHIMOGA-577201. 2. THE EXECUTIVE ENGINEER, KARNATAKA NEERAVARI NIGAMA NIYAMITA, UPPER THUNGA PROJECT, SHIMOGA-577201. - 5 - HC-KAR NC: 2026:KHC:28876 WP No. 35685 of 2025 C/W WP No. 34653 of 2025 WP No. 35970 of 2025 ...RESPONDENTS (BY SRI. ADITYA DIWAKAR, ADDITIONAL GOVERNMENT ADVOCATE FOR RESPONDENT NO.1; SRI. PRASHANTHA B.R., ADVOCATE FOR RESPONDENT NO.2) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE RESPONDENTS TO MAKE PAYMENT OF COMPENSATION AMOUNT AS PER THE ORDER OF THE HON. HIGH COURT OF KARNATAKA AT BENGALURU DATED 29/11/2024 PASSED IN MFA 2295/2015 WITHOUT DEDUCTING ANY AMOUNT TOWARDS TAX DEDUCTION AT SOURCE (TDS). A CERTIFIED COPY OF THE ORDER DATED 29/11/2024 IS HEREBY PRODUCED AS ANNEXURE-B. THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE R. NATARAJ ORAL ORDER The petitioners in these petitions have sought for a writ in the nature of mandamus to direct respondents No.1 and 2 to pay compensation as per the judgments passed by this Court in MFA No.2739/2015, MFA No.2295/2015 and 1189/2021 dated 29.11.2024 and 12.08.2025 respectively without deducting any amount towards Tax Deduction at Source (TDS). - 6 - HC-KAR NC: 2026:KHC:28876 WP No. 35685 of 2025 C/W WP No. 34653 of 2025 WP No. 35970 of 2025 2. (i) The petitioners claim that they are the owners of certain lands situate in Basavana Ganguru Village, Holalluru Hobli, Shivamogga Taluk and District which were notified for Upper Tunga Canal Project in terms of a preliminary notification dated 11.09.1997 issued under Section 4(1) of the Land Acquisition Act, 1894 (henceforth referred to as 'Act, 1894' for short), followed by a final notification. (ii) The petitioners in W.P.Nos.35970/2025 and 35685/2015 and in W.P.No.34653/2025 contend that an award was passed on 23.07.2001 determining the compensation payable at a sum of Rs.60,000/- per acre, a sum of Rs.1,00,000/- per acre for rain-fed lands respectively. Being aggrieved by the said award, references were sought under Section 18 of the Act, 1894 and the reference Court enhanced the compensation to a sum of Rs.2,00,000/- per acre for irrigated lands. The petitioners thereafter filed MFA No.2739/2015, MFA No.1189/2021 and MFA No.2295/2015 respectively claiming compensation at the rate of Rs.105/- per square feet and a Division Bench of this Court vide judgments - 7 - HC-KAR NC: 2026:KHC:28876 WP No. 35685 of 2025 C/W WP No. 34653 of 2025 WP No. 35970 of 2025 and awards dated 29.11.2024 and 12.08.2025 determined the compensation payable at Rs.105/- per square feet. (iii) The petitioners contend that they made several representations requesting the respondents to release the compensation as per the judgments passed by this Court in MFA No.2739/2015, MFA No.1189/2021 and MFA No.2295/2015. The respondents prepared a calculation sheet which disclosed that 10% of the compensation is deducted towards TDS under Section 194LA of the Income Tax Act, 1961. The petitioners claim that Section 194LA of the Income Tax Act, 1961 is not applicable to them, as they have lost their lands and that the interest awarded by the Court is statutory in nature and is intended to factor inflation. The petitioners therefore contend that a direction be issued to the respondents to pay the compensation as per the judgments passed by this Court in MFA No.2739/2015, MFA No.1189/2021 and MFA No.2295/2015 without deducting any amount towards TDS. 3. The learned counsel appearing for the petitioners in all these cases submits that the issue is no longer res integra in view of the judgment passed by a Co-ordinate Bench of this - 8 - HC-KAR NC: 2026:KHC:28876 WP No. 35685 of 2025 C/W WP No. 34653 of 2025 WP No. 35970 of 2025 Court in W.P. No.26755/2025. He submits that when the compensation payable to the petitioners itself cannot be treated as income and it cannot be subject to deduction of tax, the respondents are not authorized to deduct any amount from the interest payable on the compensation awarded. 4. The learned Additional Government Advocate appearing for respondent No.1 does not dispute the fact that a similar question was considered by a Co-ordinate bench of this Court in W.P. No.26755/2025. 5. The learned counsel for the respondent No.2 does not dispute the aforesaid position of law. 6. The Apex Court in the case of Commissioner of Income-Tax, Faridabad Vs. Ghanshyam (HUF), 2009 (8) SCC 412, held that the interest awarded under Section 28 of the Land Acquisition Act, 1894, forms part of the enhanced compensation and that such interest is intended to factor inflation during the period between the determination of compensation and its payment. The Hon'ble Apex Court also held that "interest under Section 28 of the Act, 1894 is an - 9 - HC-KAR NC: 2026:KHC:28876 WP No. 35685 of 2025 C/W WP No. 34653 of 2025 WP No. 35970 of 2025 accretion to the value of the land and hence forms part of the enhanced compensation or consideration". 7. As a matter of fact, a Co-ordinate bench of this Court in M/s. Power Grid Corporation of India ltd. Vs. The Assistant Commissioner, Mysore Division and others - W.P.No.43215/2015, held that the interest awarded under Section 28 of the Act, 1894 forms part of the compensation and therefore, no TDS can be deducted on such payment. 8. In view of the above position of law and in view of the judgment of Co-ordinate Bench of this Court in W.P.No.26755/of 2025, these writ petitions also deserve to be disposed off accordingly. 9. Accordingly, these writ petitions are disposed off. The respondents are directed to pay the compensation to the petitioners in all these petitions in terms of the judgments passed by this Court in MFA No.2739/2015, MFA No.1189/2021 and MFA No.2295/2015 without deducting any tax at source on the interest component. - 10 - HC-KAR NC: 2026:KHC:28876 WP No. 35685 of 2025 C/W WP No. 34653 of 2025 WP No. 35970 of 2025 10. This shall be complied within a period of two months from the date of receipt of a copy of this order. Sd/- (R. NATARAJ) JUDGE HJ List No.: 1 Sl No.: 24