Differences Between State And Its Entities Ought To Be Resolved On A Separate Platform, Not In Courts: Karnataka High Court

The Karnataka High Court has referred the petition moved by Special Agricultural Produce Market Committee, raising a dispute regarding the quantum of compensation to be paid for acquisition of its land for construction of a metro line, to a committee headed by the Chief Secretary of the State.

A Single judge bench of Justice Sunil Dutt Yadav remarked,

“Differences between State and its entities ought to be resolved in a separate platform and cannot land up for adjudication before the Courts which even otherwise are overburdened. The State and its entities are to contribute to lowering matters that end up before Courts for adjudication in a meaningful manner.”

It added, “The above approach is not only the mandate of the law, but would go a long way towards avoiding disputes between State and its entities contributing to increased workload.”

An extent of 2147.03 sq. mt. and subsequently, further extent of 140 sq. mt. belonging to the petitioner-Authority came to be acquired for the benefit of Bangalore Metro Rail Corporation Limited. The GO for land acquisition provided that the rate payable for acquisition of land belonging to Government and other autonomous authorities would be in terms of the Guideline Value under the Stamp and Registration Act as in force.

Court has directed the Chief Secretary to endeavour to resolve the dispute within a period of 3 months.

It noted that both the petitioner-entity and BMRCL are 'State' for the purpose of Article 12 of the Constitution. It also took into account the "Karnataka State Dispute Resolution Policy - 2021" which is adopted and formulated to combat the rise in pendency of cases where the State Government/ Instrumentalities is a party in the litigation.

Accordingly it observed, “The said Committee to be constituted to endeavour to settle the dispute amicably taking note of the constituent entities all being State Authorities. Needless to state that if the Chief Secretary, Government of Karnataka, is of the opinion that the matter cannot be resolved due to any legal impediment and is a matter to be decided by the Court, the matter may be referred back to the Court.”

Accordingly it disposed off the matter.

Case Title: Special Agricultural Produce Market Committee For Fruits, Flowers and Vegetables And Special Land Acquisition Officer—1 & others

Case No: WRIT PETITION NO. 20905 OF 2022

Citation: 2023 LiveLaw (Kar) 283

Date of Order: 14-07-2023

Appearance: Advocate Dr Nanda Kishore for Petitioner.

Advocate P V Chandrashekhar for R1.

AGA R Srinivasgowda for R5, R6.

Advocate K Krishna FOR R2 TO R4

Click Here To Read/Download Order