KNNL vs. Land Owners: Land Acquisition Compensation Dispute

The civil appeals between Karnataka Neeravari Nigam Limited (KNNL) and the land owners of Bennethora Project, Lower Mullamari Project, and Amarja Project in Kalaburagi have led to a compensation dispute. The High Court has granted varied compensation amounts for the acquired lands, leading to a series of appeals and remands. Stay tuned for further developments in this legal battle.

Facts

  • The civil appeals pertain to the Bennethora Project, Lower Mullamari Project, and Amarja Project situated in Kalaburagi, Karnataka.
  • The acquisition was carried out under the Land Acquisition Act, 1894.
  • About 13000 acres of land were acquired by the State of Karnataka for various projects like Bennethora Project, Gandori Nala Project, Lower Mullamari Project, and Amarja Project.
  • The acquisition process included parcels of lands owned by the respondent-land owners of different villages.
  • Compensation for the acquired land was initially granted at varying rates by the SLAO on different dates.
  • The appellant, Karnataka Neeravari Nigam Limited (Corporation), claims to be the beneficiary of the subject-acquisition.
  • The Corporation is responsible for planning, executing, and operating drinking water and irrigation projects and schemes in Karnataka.
  • The High Court of Karnataka at Kalaburagi Bench enhanced the compensation for the acquired land in the impugned judgements.
  • The owners of the acquired lands approached the High Court for higher compensation, which was subsequently granted.
  • The compensation amounts were further enhanced by the District Court and the High Court in the appeals.
  • The rates of compensation were categorized project-wise for the Bennethora Project, Amarja Project, and Lower Mullamari Project.
  • The process of acquisition, issuance of Section 4 notifications, Section 6 declarations, and SLAO awards were detailed project-wise in the judgements.
  • The High Court granted varied compensation amounts based on the project and land type (dry/wet lands).
  • The High Court granted enhanced compensation amounts in various judgments for different projects.
  • The compensation amounts varied from Rs. 83,500/- per acre to Rs. 1,78,429/- per acre for dry lands and Rs. 2,46,334/- for wet lands.
  • Challenges were raised against the compensation amount of Rs. 1,20,814/- per acre for dry lands and Rs. 1,81,221/- per acre for wet lands in some cases.
  • In the case of The Executive Engineer, KNNL Vs. Annarao @ Anveerappa & Anr., the Supreme Court found that the High Court did not analyze the cases independently or consider specific parameters required for just compensation.
  • The Supreme Court ordered that parties be sent back to the High Court for reconsideration of the compensation amounts in accordance with the law.

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Arguments

  • Learned senior counsel for the appellant-Corporation argues that the matter has been partially heard by the High Court after remand.
  • Opposing this, learned senior counsel for the appellant(s) argues that the cases heard by the High Court pertained to different villages and cannot be used for claiming parity.
  • In contrast, learned senior counsel for the respondents-land owners points out that many similarly situated land owners have already received compensation at an enhanced rate through High Court decisions.

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Analysis

  • In the present batch of appeals, the impugned order passed by the High Court in CA No. 4053/2024 heavily relied on its own decision in Rajshekhar’s case.
  • Certain other appeals saw reliance on High Court decisions in cases like Malkajappa @ Mallikarjun, Kalappa, and Motibee which were not favored by the Court in the Annarao @ Anveerappa case.
  • A batch of cases has been remanded by the Court for reconsideration by the High Court.
  • The matters pertain to the same broader acquisition but may involve different projects.
  • Some judgments of the High Court have finalized compensation amounts while others are still under adjudication.
  • The cases are remanded to the High Court for a holistic view on the subject acquisition, on a project-wise basis.
  • The High Court is expected to ensure uniformity in compensation awards to the extent possible within the confines of the law.
  • The compensation awarded should not be reduced to a lower rate than what has already been finalized and paid to certain landowners.

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Decision

  • The impugned judgments and orders have been set aside and the appeals/petitions are remanded to the High Court for reconsideration.
  • The High Court is directed to take up the matters along with Rajshekhar’s case and other cases that are already part heard.
  • The High Court is requested to decide the matters expeditiously, preferably within three months from the date of this judgment.
  • Parties are directed to appear before the High Court on 18.03.2024 at the Karnataka Kalaburagi Bench.
  • High Court may assign a suitable date for hearing of the cases on 11.07.2022, proceeding notification-wise pertaining to concerned villages as a separate group.
  • The High Court is advised to dispose of the appeals expeditiously given the notifications dating back to 1983.
  • The appeals are disposed of in the above terms.

Case Title: THE EXECUTIVE ENGINEER, KNNL Vs. SUBHASHCHANDRA (2024 INSC 208)

Case Number: C.A. No.-004053-004053 / 2024

Click here to read/download original judgement

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