State, agencies must solve disputes on separate platform: K'taka HC

The Karnataka High Court has referred the dispute over compensation payable for a 2,287-sqm land, acquired for Namma Metro from the fruit and flower market at Binnypet, to a committee headed by the chief secretary.

Justice S Sunil Dutt Yadav observed that disagreements between the state and its entities should be resolved through a separate platform and not burden the already overwhelmed courts with adjudication.

The case was brought before the court by the Special Agricultural Produce Market Committee for Fruits, Flowers, and Vegetables in Binnypet, Bengaluru, seeking a fresh reference under the Karnataka Industrial Areas Development (KIADB) Act.

The petitioner committee stated that a compensation amount of Rs 15.32 crore was fixed following a proceeding in 2019. The petitioner claimed not to have been part of the proceedings, rendering the fixed price non-binding. The petitioner also felt that the compensation should have been higher.

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Justice Yadav cited the Chief Conservator of Forests, Government of AP vs Collector, and others case, wherein the Apex Court stressed the need for states and the Union of India to establish a mechanism to settle interdepartmental controversies within the government itself, rather than seeking resolution through a court of law.

The court took note of the Karnataka State Dispute Resolution Policy-2021, which replaced the 'Karnataka State Litigation Policy-2011', aiming to reduce the pendency of cases involving the state government or its instrumentalities.

The new policy introduced the Inter-Departmental Dispute Redressal Committee, led by the chief secretary or additional chief secretary, to adopt Alternative Dispute Resolution (ADR) methods for conflict resolution.

As a result, the court directed the constitution of a committee headed by the chief secretary, including representatives from the petitioner committee, the managing director of BMRCL or a representative, the CEO of KIADB, the special land acquisition officer of the board, and the principal secretary to the Department of Commerce and Industries to address and resolve the compensation issue.

“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,” it said.