STATE OF KARNATAKA Vs. M S SHIVANANDA

JUDGEMENT

(1.) The State Government represented by the Deputy Commissioner. Mysore District, Mysore, has in this appeal challenged the correctness of the finding recorded by the learned District Judge, Mysore in C.C.A. Miscellaneous No. 1 of 1982 that a sum of Rs. 20,000/- being the interim compensation paid to the ex-operator (first respondent herein) need not be deducted out of the amount of compensation for the value of the vehicle acquired and the entire compensation fixed shall be paid to secured creditor, respondent 2 herein.

(2.) A few facts that are necessary for the disposal of the appeal are as follows: First respondent M.S. Shivananda was the ex-operator of the contract carriage bus bearing Registration No. 6366, which came to be acquired and vested in the State Government under Section 4 of the Karnataka Contract Carriages (Acquisition) Act, 1976 (hereinafter referred to as the 'Act'). Later, however, when the operator made an application for compensation, it was referred to the Arbitrator, the learned District Judge, Mysore, under Section 6(1)(b) of the Act. The learned District Judge-Arbitrator recorded the evidence, held an enquiry, heard the learned Counsel on both sides and proceeded to make an award, assessing the value of the contract carriage so acquired in a sum of Rs. 77,890/-. Out of it, Rs. 6,500/- towards the due was deducted. So the net compensation for the vehicle acquired was determined at Rs. 71,390/-. The contention urged on behalf of the State that the State was entitled to deduction, out of the total compensation, of Rs. 20,000/- paid as interim compensation during the pendency of the proceedings was rejected by the learned Judge, following the order made by this Court in Writ Petition No. 817 of 1976. The relevant portion in the said order reads:

(3.) Therefore, the questions that arise for consideration in this appeal are, whether the District Judge-Arbitrator was justified in holding that the sum of Rs. 20,000/- paid as interim compensation to the ex-operator cannot be deducted from the award amount and that the entire amount of compensation has to be paid to the secured creditor.