The Supreme Court has restored the valuation of land at ₹1,000 per square foot in a long-running dispute involving Nandi Infrastructure Corridor Enterprises (NICE). The Court set aside the Karnataka High Court’s order that had reduced the valuation to ₹500 per square foot, holding that the High Court exceeded its jurisdiction under Article 227 of the Constitution.
Background of the Case
The dispute arose from a compromise settlement between Nandi Infrastructure Corridor Enterprises and landowners B. Gurappa Naidu and Sunitha regarding land in Kengeri, Bengaluru. The land was part of the Bangalore-Mysore Infrastructure Corridor Project.
Under the 2007 settlement, NICE was required to transfer alternative land to the landowners. However, if it failed to do so, it had to compensate them based on the “guideline value” of the original land.
When NICE failed to complete the land exchange, execution proceedings were initiated by the landowners seeking compensation. The central issue became the correct valuation of the land under the Karnataka government’s guideline value notification.
The Executing Court determined the value at ₹1,000 per square foot, relying on the 2007 notification and considering the land’s location within municipal limits and its proximity to a State Highway.
However, the Karnataka High Court later modified this valuation to ₹500 per square foot. It relied on a different interpretation of the notification and accepted the State’s clarification that industrial land should be valued at 50% of residential rates.
The bench of Justices Aravind Kumar and N.V. Anjaria carefully examined the scope of Article 227 jurisdiction.
The Court noted that the High Court had effectively acted like an appellate authority.
“The High Court travelled beyond the limits of its jurisdiction… and substituted its own view merely because another interpretation was possible,” the bench observed.
The Supreme Court emphasized that supervisory jurisdiction is limited and cannot be used to re-evaluate evidence or reinterpret findings unless there is a clear legal error.
On valuation, the Court found that the Executing Court’s interpretation was reasonable and consistent with the notification. It clarified that the base guideline value of ₹800 per square foot, along with a 25% increase for land abutting a State Highway, correctly resulted in ₹1,000 per square foot.
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Rejecting the argument that the land should be treated as agricultural, the Court stated that the land had already been converted for industrial use and was within municipal limits.
“Having agreed to compensation on the basis of guideline value, the parties cannot later seek a different method of valuation,” the bench noted.
Allowing the appeal filed by the landowners and dismissing the appeal by NICE, the Supreme Court restored the Executing Court’s order.
It held that:
- The land value is ₹1,000 per square foot.
- The total compensation amounts to ₹13.72 crore.
- After adjusting the amount already deposited, NICE must pay the balance ₹8.79 crore.
- Interest at 6% per annum is payable as previously directed by the High Court in separate proceedings.
“The impugned order of the High Court is set aside, and the order of the Executing Court is restored,” the Court concluded.
Case Details
Case Title: Nandi Infrastructure Corridor Enterprises Ltd. & Anr. vs B. Gurappa Naidu & Ors.
Case Number: Civil Appeal No. 1388 of 2013 (with Civil Appeal No. 1354 of 2013)
Judges: Justice Aravind Kumar and Justice N.V. Anjaria
Decision Date: April 30, 2026
