JUDGMENT

Shivaraj V. Patil, J.-

Civil Appeal No. 6546 of 1999

The State of Andhra Pradesh is in appeal questioning the validity and correctness of the impugned order made by the Division Bench of the High Court in Writ Appeal No. 411 of 1998.

2. The few facts which are relevant and necessary for the disposal of this appeal are the following:

An extent of 1573 sq. yds. in survey No. 54/2 of Kakaguda village in Hyderabad district was acquired by the State for improvement of Hyderabad-Karimnagar-Ramagundam Road which included the land of the respondent to the extent of 8 guntas (968 sq. yds.). After completing the acquisition proceedings, the possession of the said land was taken. Aggrieved by the amount of compensation determined @ Rs. 1400 per sq. yds., the respondent sought reference under Section 18 of the Land Acquisition Act, 1894 (for short the Land Acquisition Act ) seeking enhancement of compensation amount and the reference is pending disposal before the Reference Court.

3. Out of the land so acquired, only 424 sq. yds., of land was utilized and the rest of the land remained vacant. The Resident Engineer (Roads & Buildings) addressed a letter dated 27.12.1996 to the Land Acquisit