Karnataka Neeravari Nigam Vs Tate Through Special Land Acquisition Officer (Karnataka High Court)
The Karnataka High Court dealt with a long-pending land acquisition dispute in which Karnataka Neeravari Nigam Limited (KNNL), the beneficiary of the acquisition, had challenged the judgment and award dated 01.06.2019 passed by the Principal District Judge, Kalaburagi in LACA No.776 of 2017. Taking note of the prolonged acquisition proceedings, delay in payment of compensation to land losers, continuing execution proceedings and the mounting burden of statutory interest and other liabilities, the Court considered whether the disputes could be resolved through an alternative dispute resolution mechanism instead of continuing adversarial litigation. The parties agreed to mediation and the disputes were referred to mediation under the aegis of former Karnataka High Court Judge Justice A.V. Chandrashekhar. Pasted markdown
Several rounds of mediation followed, involving representatives of the State Government, KNNL and the land losers. The parties eventually arrived at an amicable settlement recorded in a written Mediation Agreement. The compromise relating to the Bennethora project had been approved by the State Government of Karnataka on 25.02.2026. Under the settlement, the market value for dry land was arrived at at Rs.1,64,223 per acre. The claimants were entitled to statutory benefits under the Land Acquisition Act except for the period of delay in filing the appeal before the First Appellate Court. They agreed to forego statutory interest for two and a half years, while the calculation of interest was made up to 14.03.2026. If the agreed amount was not paid within four months from signing of the agreement, KNNL would lose the benefit of the agreed waiver of interest. Pasted markdown
