The Karnataka Industrial Areas Development Board vs Karimsab

Mohan M. Shantana Goudar, J.—The delay of 74 days in filing the writ appeals is condoned and I.A. No. 1/2014 is accordingly allowed. I.A. No. 3/2014 for dispensation and I.A. No. 4/2014 for production of additional documents are allowed.

Heard the writ appeals on merits.

Certain lands of these respondents were acquired by KIADB by issuing notification under Section 28(4) of the Karnataka Industrial Area Development Board Act published on 06.10.2007. The lands of the respondents are totally measuring 17 acres 28 guntas and are situated at Tarihal village, Hubli, Taluk, Dharwad District. Though the preliminary notification was issued in the year 2006, final notification was issued in the year 2007, consent agreement was entered into between the parties in the month of July 2008. Under such agreement, these respondents agreed to pay and the petitioners agreed to receive certain lump-sum compensation, apart from compensation relating to the malkies and buildings.

Indisputably, the compensation in respect of acquired land, as agreed under the agreement of July 2008, was paid to the respondents by KIADB, as per the agreement within the reasonable period. However, the compensation relating to malkies and building was not paid from 2008 till 2011/2012. There is nothing on record to show that the KIADB had issued notice to the land-losers for receiving the compensation in respect of malkies and buildings. Subsequently, in the month of May-2012, one more agreement came to be entered into between the parties agreeing to pay and receive certain amount of compensation in lumpsum in respect of malkies and buildings. Such compensation is paid.

The land-losers subsequently approached this Court by filing Writ Petition Nos. 85548-552 of 2013 praying for a direction to KIADB to pay interest on the compensation fixed in respect of malkies and buildings. This Court, while disposing of the writ petitions on 21.04.2014, directed the KIADB as under:-

"(i) Writ petitions are hereby allowed in part.

(ii) Respondents are directed to pay interest @ of 9% p.a. from 26.11.2007 to 25.11.2008 and @ 15% p.a. from 25.11.2008 till the date on which payment have been made in favour of respective petitioners i.e., in the year 2011 or 2012 as the case may be, within a period of six weeks from the date of receipt of certified copy of this order.

Ordered accordingly."

The aforementioned order is assailed in these writ appeals.

During the course of hearing, it is brought to the notice of the Court by the learned advocates on both sides, that the land losers/original writ petitioners have agreed to receive 9% interest on the amount of compensation fixed from the respondents in respect of malkies and buildings and such amount is already paid by KIADB to land-losers by way of settlement between the parties. Thus, the land-losers do not wish to pursue the matter any more, so also the KIADB also does not wish to pursue the matter further.

Though, it is contended by Sri. Ashok N. Nayak, learned advocate for the KIADB, that the compensation in respect of the malkies and buildings was fixed as on the date of valuation, we cannot agree with the said contention in view of the fact that there is no scientific report as to development of malkies from the year 2007 to 2012. So also, there is nothing on record, much less scientific report with regard to depreciation of the valuation of the building. In the absence of such scientific report in respect of appreciation or depreciation of the malkies and buildings, from the date of acquisition till the date of agreement between the parties, in our considered opinion, 9% interest, as agreed by the land losers, may be appropriate interest under the facts and circumstances of the case.

Moreover, the agreement of 10.05.2012 does not specify as to whether the compensation. agreed includes interest also. In view of the same, we do not propose to interfere in the agreement between the parties relating to acceptance of 9% of compensation by the land losers despite direction issued by the learned Single Judge by virtue of the impugned order.

Hence, the writ appeals stand disposed of with an observation that the agreed 9% interest paid by the KIADB in favour of the land-losers in respect of compensation relating to malkies and buildings will hold good insofar as the land losers are concerned.

In view of disposal of writ appeals, I.A. No. 2/2014 for stay does not survive for consideration.