Kamalakar Vs Karnataka Neeravari Nigam Ltd. (Karnataka High Court)
Summary: The Karnataka High Court allowed Kamalakar’s writ petition and directed Karnataka Neeravari Nigam Ltd. and the other respondents to release, within three months from receipt of the order, the compensation amounts withheld from the petitioner if those sums had been deducted as income tax or tax deducted at source. The petitioner sought a mandamus for payment of the withheld portion of compensation payable for acquired land. The Court found the controversy directly and squarely governed by its order dated 10.08.2026 in Siddanna & Ors. vs. Karnataka Neeravari Nigam Litd. & Ors., W.P. No.203085/2026, and reproduced that order extensively.
In Siddanna, the land losers had received enhanced compensation in several appeals, but specified amounts remained withheld. The respondents could not produce material explaining the withholding and suggested that the sums might represent income tax/TDS. The land losers relied on Karnataka Neeravari Nigam vs. The State and Ors., W.P. No.226178/2020, decided on 02.04.2026, and The Defense Estate Officer and Sunanda and Ors., W.P. No.102884/2025, decided on 20.08.2025. The former order recorded a mediated settlement of long-pending land-acquisition disputes and directed that payments under the settlement be made without TDS. The latter distinguished interest under Sections 28 and 34 of the Land Acquisition Act, 1894. It held that interest awarded under Section 28 on enhanced compensation formed part of compensation and was not interest per se, whereas Section 34 concerned delayed payment of the original compensation.
