Case Note & Summary
The petitioners, land-losers whose lands were acquired by the Karnataka Industrial Area Development Board (KIADB) for formation of an industrial layout, sought compensation for eucalyptus trees standing on their acquired lands. The grievance arose from the non-assessment and non-payment of compensation for these trees, based on Condition No.4 of a Circular dated 19.07.2001 issued by the KIADB, which excluded eucalyptus, casurina and other firewood trees from compensation. The petitioners had made a representation on 25.07.2013 seeking compensation, which was rejected by an endorsement dated 18.02.2014 citing the circular condition. The petitioners then filed writ petitions under Articles 226 and 227 of the Constitution of India to quash the endorsement and direct the respondents to consider their representation. The court analyzed whether eucalyptus trees constitute 'immovable property' and whether the circular condition could validly exclude them from compensation. The court held that trees are immovable property and the circular condition is arbitrary and cannot override the statutory right to compensation under the Land Acquisition Act, 1894. The court quashed the impugned endorsement and directed the respondents to assess and pay compensation for the eucalyptus trees in accordance with law, within a specified period.
Headnote
A) Land Acquisition - Compensation for Trees - Immovable Property - Right to Compensation - The issue was whether eucalyptus trees are 'immovable property' and whether a circular condition excluding them from compensation is valid. The court held that trees are immovable property and the circular condition is arbitrary and cannot override the statutory right to compensation under the Land Acquisition Act, 1894. (Paras 1-5) B) Land Acquisition - Executive Circular - Validity - Condition Excluding Trees - The court examined Condition No.4 of the Circular dated 19.07.2001 which excluded eucalyptus, casurina and other firewood trees from compensation. Held that such exclusion is ultra vires the Land Acquisition Act, 1894 as it denies rightful compensation for property acquired. (Paras 2-5)
Issue of Consideration
Whether eucalyptus trees standing on acquired land are 'immovable property' and whether the condition in the circular dated 19.07.2001 excluding eucalyptus, casurina and other firewood trees from compensation is valid.
Final Decision
Writ petitions allowed. Impugned endorsement dated 18.02.2014 quashed. Respondents directed to consider the representation dated 25.07.2013 and assess and pay compensation for eucalyptus trees in accordance with law within a specified period.
Law Points
- Compensation for trees in land acquisition
- Interpretation of 'immovable property'
- Validity of executive circulars excluding certain trees from compensation
- Right to compensation under Land Acquisition Act



