Compensation Will Have To Be Paid If Money Belonging To Citizen Is Retained By State Entities: Karnataka High Court

The Karnataka High Court emphasized that money belonging to a citizen is considered his property, and if retained by state entities, it constitutes temporary acquisition of property, mandating compensation as per Article 300A jurisprudence. \r

In a case concerning land auctioned by the state, later restored to its original owner, the court set aside a single judge's order directing alternate land allocation. It noted the doctrine of frustration of contract, emphasizing that the state should conduct auctions meticulously, considering challenges to property forfeiture. \r

The court directed the state to refund 25% of the bid amount with 10% interest per annum from 2005. Additionally, it ordered the payment of interest at the same rate on the remaining amount from 2019 to 2024, with penalties for non-compliance and costs to be borne by the state.