Land acquired for Ballari steel plant: SC orders ArcelorMittal to pay enhanced compensation

A group of farmers had approached the top court against a decision to re-examine their plea for enhanced compensation for their land in Ballari

The Supreme Court has ordered ArcelorMittal to pay enhanced compensation of more than Rs 30 lakh each for about 300 acres of land acquired by Karnataka Industrial Areas Development Board in 2010 for setting up a steel plant of the company at Kudatini in Ballari district.

A group of farmers had approached the top court against a decision to re-examine their plea for enhanced compensation for their land out of 4865.64 acres acquired in Ballari for setting up a steel plant.

A bench of Justices Sanjay Kishan Kaul and Abhay S Oka allowed the appeal filed by B Ravi Prakash and others and directed the beneficiary company to pay the entire amount payable as per award of the reference court to the owners within a period of three months.

The top court set aside as "completely erroneous" the Karnataka High Court's order that a notice was required to be issued to the Board, after having noted that a special land acquisition officer had already deposed before the reference court.

The petitioners were represented by senior advocate Devdatt Kamat and advocate Sanjay M Nuli, while KIADB was led by senior advocate Mukul Rohatgi.

In the matter, the special land acquisition officer had determined the compensation at the rate of Rs 1.5 lakh per acre. On an appeal, the reference court enhanced the compensation.

However, KIADB approached the Karnataka HC, which set aside the award, remanding the matter back to the reference court on the ground that the appellant was a necessary party and must be heard.

In their plea before the top court, the land owners contended the KIADB was neither a necessary nor a proper party to the reference proceedings as the beneficiary company was the person for whose benefit the acquisition was made. The company had never challenged the award.

The Board, which contended that it was a statutory body, could not dispute that the acquisition was specifically for the benefit of the company, the court noted.

It also pointed out an agreement dated June 02, 2012 was executed between the company and the Board which incorporated the obligation of the beneficiary company to pay the enhancement of land compensation as per the decree of the competent court.

The agreement also recorded that the initial compensation amount has already been deposited by the company with the Board.

"In the facts of the case, the beneficiary company is the person for whom the land was notified for acquisition and it is the beneficiary company which was liable to pay compensation and enhanced compensation to the owners. Therefore, there was no occasion for the High Court to come to the conclusion that the notice was required to be issued to the Board as well as to the company. There was no requirement of issuing notice to the Board in the facts of the case," the bench said.