IMPORTANT POINT
In respect of agricultural or undeveloped land which has potential value for housing or commercial purposes, normally 1/3rd amount of compensation has to be deducted towards development expenses and area required for roads and other civic amenities.

JUDGMENT

Sema, J.-Parties are heard.

2. On 30.9.1985, a chunk of land measuring 5 acres 39 cents in Survey no. 386 of Pebbair Village, Mahaboob Nagar District, Andhra Pradesh, was acquired by a draft Notification dated 30.9.85 under Section 4(1) of the Land Acquisition Act, 1894 ( in short The Act ) for providing house-sites to the poor. Section 17(4) Notification, by invoking urgency clause by which the enquiry under Section 5-A of the Act was dispensed with, was also issued. Possession of the land was taken over on 10.3.1986. Earlier draft Notification, having lapsed, led to a fresh Section 4(1) Notification dated 28.2.1990. On 28.3.1991, the Land Acquisition Officer after holding an enquiry fixed the market value of the land at Rs. 45,000/- per acre, equivalent to Rs. 10/- per square yard. Aggrieved by the Award, the claimants made a reference application under Section 18 of the Act. The learned Civil Judge by its order dated 28.4.1992 determined the market value of the land at Rs.78/- per square yard and after allowing deduction of 1/4th of the acquired area, which was required for developmental purposes, arrived at Rs. 58/- per square yard as net payable. The Reference Court also awarded additional amount under Section 23(1A) of the Act @ 12% per annum from the date of subsequent publication of Section 4(1) Notification i.e. 28.2.1990 to the date of Award i.e. 28.3.1991 and solatium @ 30% and interest @ 9% per annum for one year from the date of taking possession i.e. 10.3.1986 to 9.3.1987 and @ 15% per annum from 10.3.1987 to the date of the Award i.e. 28.3.1991 along with costs. Aggrieved by the Award of the Reference Court, two sets of appeals were filed before the High Court- one by the claimants seeking enhancement of the compensation from Rs. 58/- to Rs. 80/- per square yard; and the other filed by the Land Acquisition Officer assailing the enhancement. Both sets of appeals were disposed of by the High Court by a common order on 17.12.1996 allowing the appeals filed by the Land Acquisition Officer and dismissing the appeals filed by the claimants. In the said order the High Court fixed the market value of the acquired land @ Rs. 30/- per square yard. The High Court also allowed solatium @ 30% and interest @ 9% for one year from 10.3.1986 to 9.3.1987 and @ 15% from 10.3.1987 till the date of payment . The High Court held that the claimants were not entitled to additional amount under Section 23(1-A) from the date of Notification under Section 4(1) i.e. from 28.2.1990 upto the date of Award dated 28.3.1991. Aggrieved by the aforesaid order the present appeals have been preferred by the claimants.

3. Before the Reference Court, the claimants adduced evidence and exhibited documents, which are sale instances of comparable land. The claimants also admitted that the land so acquired is about hundred yards away from the National Highway No. 7. It is also the case of the claimants that there are houses, shops, two petrol bunks and hotels on the north, south and west of the acquired land. While interfering with the enhancement of the compensation made by the Reference Court, the High Court held that the Reference Court accepted the sale instances of comparable land without discussing and without assigning any reasons. The Reference Court relied on the Exhibit X-1, which is a certified copy of the Award dated 21.7.1989 made by the Assistant Collector relating to the acquisition of land bearing Survey No. 1071/2 measuring 2 acres and 5 guntas situated in Pebbair village for construction of APSRTC bus stand for which the draft Notification under Section 4(1) of the Act was published in the Gazette on 23.7.1987. The land so acquired by the aforesaid Notification was admittedly abutting the National Highway No.7. Since the land for which the Award has been made by Exhibit X-1 is abutting the National Highway No. 7, such Award cannot be comparable with the land acquired, which is admittedly away from the National Highway about 100