Holding

The High Court's order ordering deposit of 50% of the enhanced amount with liberty to withdraw the whole sum requires modification; claimants may withdraw only 25% without security and the remaining 25% must be kept as a fixed deposit in a nationalized bank.

Summary

The Supreme Court examined an appeal against a Karnataka High Court interim order that stayed execution of land acquisition awards pending the appellant’s deposit of 50% of the enhanced compensation, solatium, additional market value and interest, and allowed claimants to withdraw the amount. The appellant contended that the direction was excessive and sought modification. The Court held that while a 50% deposit of the enhanced amount was appropriate, the High Court’s liberty to withdraw the entire amount needed alteration. It directed the appellant to deposit the specified amounts with the reference court, permitted claimants to withdraw only 25% without security, and ordered the remaining 25% to be kept as a fixed deposit in a nationalized bank pending further orders. The Court also instructed the High Court to dispose of the pending appeals within six months and dismissed the appeal without costs.

Issues considered

Whether the High Court's interim order directing the appellant to deposit 50% of the enhanced compensation and allowing claimants to withdraw the entire amount is legally valid.
What should be the appropriate terms of deposit and withdrawal of the enhanced compensation, solatium, additional market value and interest pending final determination.

Subjects

land acquisitionenhanced compensationsolatiumadditional market valueinterim orderstay of executiondepositfixed depositreference courtappeal

Judgment

A GEN. MANAGER, MIS. HUTII GOLD MINES CO.
v.
SHIVAPPA (D) THR. HIS LRS. AND ORS.

FEBRUARY 19, 2007

B [DR. AR. LAKSHMANAN AND AL TAMAS KABIR, JJ.]

Land Acquisition:
\

Execution of award passed in Land Acquisition proceedings-Stay by •
c High Court subject to appellant depositing 50% of enhanced compensation
amount alongwith proportionate amounts towards solatium, additional
market value and the interest thereon and claimants given liberty to withdraw
the same-Challenge to-Held: Order of High Court needs modification-On
deposit of 50% of the enhanced amounts, claimants permitted to withdraw
D 25% without furnishing security-Remaining 25% to be kepi in fixed deposit
0
of Nationalized Bank.

The High Court while admitting appeals stayed the operation and
execution of the award passed in Land Acquisition proceedings subject to the
'
appellant depositing 50% of the enhanced compensation amount alongwith
E the proportionate amounts towards solatium, additional market value and the
interest thereon with the Reference Court and on such deposit being made,
granted liberty to Respondent-claimants to withdraw the same. Hence the
present appeal challenging_ the said direction of High Court.

Disposing of the appeal, the Court
F
HELD: The order of the High Court ordering deposit of 50% of the
enhanced amount with liberty to withdraw needs modification. The appellant
is directed to deposit 50% of the enhanced amount along with the
proportionate amounts towards solatium, additional market value and the
interest thereon with the Reference Court. On ~uch deposit, all the claimants
G are entitled to withdraw 25% of the enhanced amount without f~rnishing any
security. The Reference Court shall open a separate account in respect of all
the claimants and keep 25% of the remaining amount in fixed deposit in a
Nationalised Bank and await further orders from the High Court in the
.
pending appeal. [Para 5) [806-A, B, CJ
H 804
GEN. MANAGER. ~VS. HUTTI GOLD MINES CO.>. SHIVAPPA (DI THR. HIS LRS. [LAKSl1't4NAN, J.] 805

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 840 of 2007. A
From the interims Order dated 11.1.2007 of the High Court of Court of
Kamataka at Bangalore in M.F.A. No. 3707/2006.

Gopal Subramaniam, Mukul Rohtagi, Lalit Mohini Bhat, Anitha Shenoy
and Naveen R. Nath for the Appellants. B
Dhruv Mehta, Harshvardhan Jha and Yashraj Singh Deora for the
Respondents.

The Judgm<!nt of the Court was delivered by

DR. AR. LAKSHMANAN, J. 1. Heard Mr.Gopal Subramaniam, learned
c
ASG appearing on behalf of the appellant and Mr. Dhruv Mehta, learned
counsel appearing on behalf of the respondent-claimants.

2. Leave granted.
D
3. This appeal is directed against the order passed by the High Court
of Karnataka in M.F.A.No.3707/2006 and other connected matters. The High
Court of Karnataka by order dt.11.01.2007 while admitting the appeals has
passed the following interim order:-

"This Court doth Order that pending admission of the above E
appeal the operation and execution of the impugned award in LAC
Nos. 1,2,31.3,4,32,5,6,7,33,34,8,35,37,9,10 of2001 dated 19.12.2006 and
LAC Nos.22,23, 13,24,17,26,18,27, 19, 14,28,20,29, 15m 30 of 200 I dated
03.01.2006 on the file of the Addi.Civil Judge (Sr.On.) Raichur is
hereby stayed subject to the appellant depositing 50% of the enhanced F
amounts along with the proportionate amounts towards solatium,
additional market value and the interest thereon within four weeks
from today i.e. 11.01.2007 with the reference Court. On such deposit
being made, it is open to the claimants to draw the same.".

4. Aggrieved against the direction to deposit 50% of the enhanced G
amount along with the proportionate amounts towards solatium, additional
market value and the interest thereon, the appellant through its General
_, Manager preferred the above Civil Appeal arising out ofSLP(C) No.2471/2007.

5. We have perused the grounds of appeal and also heard the arguments
advanced by learned ASIJ for the appellant and learned counsel for the H
'
J

806 SUPREME COURT REPORTS .[2007] 2 S.C.R.

A respondents. Since the appeal is pending before the High Court, we are not
expressing any opinion on the merits of the rival claims. However, in our
opinion, the order of the High Court ordering deposit of 50% of the enhanced
amount with liberty to withdraw needs modification. We, therefore, direct the
appellant herein to deposit 50% of the enhanced amount along with the
B proportionate amounts towards solatium, additional market value and the
interest thereon within four weeks from today with the Reference Court. On
such deposit, all the claimants are entitled to withdraw 25% of the enhanced
amount without furnishing any security. The Reference Court shall open a
separate account in respect of all the claimants and keep 25% of the remaining
amount in fixed deposit in a natior;ialised bank and await further orders from
C the High Court in the pending appeal. Since the acquisition proceedings
started in the year 1995 and the matter is pending in one forum or the other
we request the High Court to dispose of the appeals filed by the appellant
herein ar.d also the appeals filed by the respondents herein/claimants within
six months from today on merits and in accordance with law. We request the
Hon'ble Chief Justice of the Karnataka High Court to place all the matters
D before a Division Bench of the said court for disposal of the same within the
time stipulated in this Order.
' appeal stands disposed of accordingly.
6. The

7. No costs.
E
B.B.B. Appeals disposed of.

L