- 1 - HC-KAR NC: 2026:KHC:5523 MSA No. 91 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 31ST DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE MISCELLANEOUS SECOND APPEAL NO. 91 OF 2021 (LA) BETWEEN: THE ASSISTANT COMMISSIONER AND LAND ACQUISITION OFFICER, KOLAR SUB DIVISION, KOLAR - 563101. …APPELLANT (BY SRI M RAJAKUMAR, AGA) AND: ASHWATHANARAYANASWAMY, S/O LATE MUNIVENKATAPPA, AGED ABOUT 54 YEARS, R/O BANGAVADI VILLAGE, KASABA HOBLI, SRINIVASAPURA TQ, KOLAR DISTRICT. …RESPONDENT (BY SRI SHANKAR M NAIK, ADVOCATE) THIS MSA IS FILED UNDER SECTION 54(2) OF LAND ACQUISITION ACT AGAINST THE ORDER DATED 02.11.2018 PASSED IN MA No.18/2017 ON THE FILE OF THE I ADDITIONAL SESSIONS JUDGE, KOLAR, PARTLY ALLOWING THE APPEAL AND SETTING ASIDE THE JUDGMENT AND AWARD DATED 08.08.2017 PASSED IN LAC No.6/2013 ON THE FILE OF THE I ADDITIONAL SENIOR CIVIL JUDGE, KOLAR, PARTLY ALLOWING THE APPEAL FILED UNDER SECTION 18 OF THE LAND ACQUISITION ACT. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: Digitally signed by PRAMILA G V Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:5523 MSA No. 91 of 2021 CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE ORAL JUDGMENT This appeal is filed against the Award passed by the Reference Court and the decree passed by the Appellate Court. The dispute arises out of the land acquisition proceedings initiated under the provisions of the Land Acquisition Act, 1894. 2. This appeal is by the State. The respondent's land is acquired for the benefit of the railway. The beneficiary railway is not made a party to the proceeding before the Reference Court. The respondent's land is acquired in terms of Section 4 Notification dated 10.02.2011. The land acquisition officer fixed Rs.1,50,000/- per acre as the market value of the land. The land loser sought reference seeking enhancement of compensation. The Reference Court after hearing the petitioner and respondent-State before it, enhanced the market value to Rs.1,60,000/- per acre. In addition Rs.56,000/- is awarded as the compensation for trees and the crops in the acquired land. 3. Aggrieved by the compensation determined by the Reference Court, the land loser filed appeal before the I - 3 - HC-KAR NC: 2026:KHC:5523 MSA No. 91 of 2021 Additional District Judge, Kolar in MA No.18/2017. The said appeal is allowed in part. The Appellate Court fixed Rs.2,50,000/- per acre as the market value. The compensation payable in respect of the crops and trees is enhanced to Rs.1,00,000/-. In addition, the other consequential benefit is also conferred. 4. The acquiring authority is made a party to the proceeding and the beneficiary is not made a party to the proceeding. The acquiring authority-State is in appeal before this Court on the premise that the proceeding is defective, the compensation is required to be paid by the beneficiary and the beneficiary is not made a party. 5. The learned Government Advocate submits that the beneficiary has instructed the appellant to file an appeal and beneficiary has also deposited entire compensation amount before the State authorities and since there is an instruction by the beneficiary to file an appeal, the present appeal is filed. 6. Learned Government Advocate would submit that the settled position of law is the proceeding before the Reference Court is to be initiated by making the beneficiary as - 4 - HC-KAR NC: 2026:KHC:5523 MSA No. 91 of 2021 well as acquiring authority as parties to the proceeding. In the instant case only the acquiring authority is made a party and the beneficiary is not made a party. Thus, learned counsel would contend that the matter has to be remanded to the Reference Court for fresh adjudication. 7. It is also urged that the compensation fixed by the Reference Court in respect of the trees and crops is on higher side and liable to be set aside and it is further submitted that the compensation determined by the Appellate Court in respect of the land as well as on the trees is on higher side and has to be set aside. 8. It is relevant to notice that the beneficiary has not filed appeal before the District Judge challenging the award passed by the Reference Court. However, it is also required to be noticed that the beneficiary was not made a party to the proceeding before the Reference Court. 9. Before this Court, contention is raised holding that the trees were not in existence and the crops were not grown when the property was acquired. - 5 - HC-KAR NC: 2026:KHC:5523 MSA No. 91 of 2021 10. This being the position, the Court is of the view that the matter requires to be remanded. 11. Hence the following: ORDER (i) Appeal is allowed in part. (ii) The impugned judgment and decree dated 02.11.2018 on the file of I Additional District Judge, Kolar in M.A. No.18/2017 are set aside. (iii) The impugned judgment and award dated 08.08.2017 on the file of I Additional Senior Civil Judge, Kolar in L.A.C.No.6/2013 are set aside in part. (iv) The matter is remitted to the Reference Court to consider the land loser's claim for higher compensation. (v) The Reference Court shall issue notice to the beneficiary South Western Railway Corporation as respondent No.2. (vi) The amount said to have been deposited with the appellant by the railway in respect of the award which is affirmed by the Appellate Court to the extent of Rs.1,50,000/- per acre shall - 6 - HC-KAR NC: 2026:KHC:5523 MSA No. 91 of 2021 be released in favour of the claimant along with other consequential benefits and interests, subject to claimant giving an undertaking in writing that in case the market value is reduced he will reimburse the excess compensation received along with interest @ 6% per annum from the date of receipt till the date of repayment. (vii) The balance amount deposited by the Indian Railway Corporation shall be kept in a Fixed Deposit in a Nationalised Bank for a period of one year with auto renewal mandate. (viii) The balance amount to be kept in deposit in Nationalised Bank shall be released in terms of final judgment. (ix) This Court has not expressed anything on the merits of the matter and all contentions are kept open. Sd/- (ANANT RAMANATH HEGDE) JUDGE GVP List No.: 1 Sl No.: 19