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Synopsis

The Supreme Court has on May 7, 2024 directed the Karnataka government to pay enhanced compensation of Rs 4.5 lakh per acre to landowners of the irrigated land acquired for the purposes of construction of canals under the Hippargi Barrage project in 2007.

A bench of Justices BR Gavai and Sandeep Mehta directed that the appellant-claimants Shripal and one other would be entitled to compensation towards the acquired lands at the rate of Rs 4,50,000 per acre with all statutory benefits, interest and costs. 

The court, however, said the direction of the High Court to deny interest for the period of delay in filing the cross-objections would be sustained.

Land losers, led by senior advocate Anand Sanjay M Nuli had approached the court by way of an appeal seeking enhancement of compensation pursuant to acquisition of their lands by the state authorities for the purpose of construction of canals under the Hippargi Barrage project.

The land acquisition notification under Section 4(1) of the Land Acquisition Act, 1894 was issued on April 12, 2007. The Special Land Acquisition Officer had awarded compensation to the tune of Rs 1,31,263 per acre to the landowners.

A reference was preferred and the Reference Court enhanced the compensation by fixing the market value of the land at Rs 3,00,000 per acre.

Aggrieved by it, the beneficiary, Karnaktaka Neravari Nigam Ltd filed a plea before the High Court of Karnataka, Dharwad Bench wherein, the appellant-claimants filed cross-objections seeking enhancement of compensation. In the High Court, the landowners contended that in another matter, the High Court had awarded compensation by fixing the market value at Rs 3,69,000 per acre along with statutory benefits so far as the irrigated lands are concerned.

Senior counsel Nuli drew the court’s attention to an order of April 17, 2021 by Single Judge of the High Court of Karnataka wherein, for the very same project, the landowners had been awarded compensation at the rate of Rs 5,00,000 per acre in respect of lands which are covered under the notifications issued between 2004-2008. 

He, thus, submitted that the appellants were entitled to the same relief. On the opposite side, senior advocate Navin R Nath, for the beneficiary claimed that the High Court committed a glaring error in construing the affidavit. He urged that in the said matter, the affidavit which was filed pertained to an acquisition of 2009, wherein the Reference Court had determined compensation at the rate of Rs 5,00,000 per acre.

For the lands acquired in the year 2009, the market value had been fixed by the Reference Court at Rs 5,00,000 per acre and above, the court noted. The lands of the appellants herein were acquired in the year 2007. 

"In this background, we feel that ends of justice would be met if the market value of the lands acquired from the appellants is fixed at Rs 4,50,000 per acre by modifying the order of February 2, 2018 passed by the High Court," accordingly ordered the bench.

Case Title: Shripal & Anr vs. Karnataka Neravari Nigam Ltd & Anr