JUDGMENT

Dr. MUKUNDAKAM SHARMA, J.

1. The present appeals are filed by the appellant and are directed against the judgment and order dated 08.06.2001 passed by the High Court holding that the respondents-claimants are entitled to compensation at the rate of Rs. 75/- per square yard for the acquired lands after deducting 1/3rd from the said amount, i.e., Rs. 25/- per square yard, along with other benefits as awarded by the Civil Court.

2. The State Government of Andhra Pradesh by issuing a notification under Section 4(1) of the Land Acquisition Act, 1894 [hereinafter referred to as "the Act"] on 16.01.1985, which was published in the Gazette on 17.04.1985, proposed to acquire an extent of land measuring 84 acres 24 guntas of land situated in Survey Nos. 4, 5, 6, 7, 8, 13, 14 and 108 of Pothireddipalli village, Sangareddy Mandal, Medak District. The aforesaid notification was followed by a notification under Section 6 of the Act. The Land Acquisition Officer thereafter, taking into consideration the sale transactions of adjoining lands for a period of three years prior to the publication of notification in question, passed an award determining the market value of the land in question at Rs. 36,000/- per acre.

3. The respondent-claimants being dissatisfied with the aforesaid award passed by the Land Acquisition Officer, sought for a reference under Section 18 of the Act to the Civil Court claiming compensation at Rs. 100/- per square yard for the acquired land. Consequent to the said prayer, a reference case was registered. The respondents-claimants examined eight witnesses and also produced some documents on record in the nature of sale deeds exhibited as A1 to A15. On behalf of the Land Acquisition Officer, documents were produced which were exhibited as B1 to B22.

4. The District Judge, who heard the reference case, after considering the oral and documentary evidence produced before him, passed a common judgment and order dated 29.12.1997 fixing the market value of the land acquired at Rs. 50/- per square yard and also awarded 30 per cent solatium on the market value and a further sum of 12 per cent additional market value in terms of the Section 23(1)(A) of the Land Acquisition Act. The Civil Court also awarded interest at 9 per cent per annum for the first year and 15 per cent per annum thereafter.

5. The respondents-claimants, still aggrieved, filed appeals before the High Court under Section 54 of the Act. The Land Acquisition Department of the Government of Andhra Pradesh and the appellants herein also filed appeals before the High Court contending inter alia that the reference court was not justified in determining compensation on the basis of square yards of land when a large extent of land measuring 84 acres 24 guntas had been acquired. Another contention that was raised on behalf of the State was that the reference court should have at least made deduction towards development charges which could have been done in the range between 33 per cent to 65 per cent since the land acquired was a large tract of land whereas the exemplar is small plot of land.

6. Contention of the respondents on the other hand in their appeals was that similarly situated lands were sold for Rs. 200/- per square yards to Rs. 300/- per square yards and, therefore, the valuation fixed by the reference court should be enhanced.

7. The aforesaid appeals were heard by the High Court and by a common judgment and order dated 08.06.2001 the Court, taking into consideration the generality of the situation and the proximity of the land in question to industrial establishments and its potentiality, held that the claimants were entitled to compensation of Rs. 75/- per square yard for the acquired lands and then deducted 1/3rd from the said amount, which is Rs. 25/- per square yard, and consequently held that the respondents-claimants would be entitled for payment of compensation at the rate of Rs. 50/- per square yard with other benefits as awarded by the Civ