Karnataka Neeravari Nigam Vs Eranna (Karnataka High Court)
Karnataka HC Encourages Mediation Because Prolonged Land Acquisition Litigation Increased Interest Burden; Land Acquisition Dispute Resolved Through Mediation Because Court Found Adversarial Process Inefficient; Karnataka HC Approves Mediated Settlement Fixing Land Value at Rs.90,000 Per Acre; Karnataka HC Directs Timely Electronic Payment of Land Compensation Under Mediation Agreement.
In Karnataka Neeravari Nigam Vs Eranna, the Karnataka High Court referred a long-pending land acquisition dispute to mediation and disposed of the matter in terms of a comprehensive settlement agreement executed between Karnataka Neeravari Nigam Limited (KNNL), the State authorities, and the land losers.
The petitioner, KNNL, had challenged a judgment and award dated 04.03.2021 passed by the III Additional District and Sessions Judge, Kalaburagi. While considering the matter, the High Court noted that the acquisition proceedings had remained pending for an inordinately long period and that the land losers had not received compensation within a reasonable timeframe. The Court observed that prolonged litigation had resulted in execution proceedings and increasing liabilities towards statutory interest and related consequences.
Considering the prejudice likely to be caused to both land losers and the State, the Court suggested mediation under the principles underlying Section 89 CPC. The State Government, KNNL, and the land losers agreed to explore settlement through mediation. The disputes were accordingly referred to mediation under the guidance of former High Court Judge Justice A.V. Chandrashekhar.
