IMPORTANT POINT
For determining market value of acquired land various factors as laid down by Supreme Court should be kept in mind.

JUDGMENT

Abhay Manohar Sapre, J.

1) Leave granted.

2) These appeals are filed against the final judgment and order dated 08.08.2014 passed by the High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh in LAAS No.762 of 2010 and CO(SR) No.373 of 2011 whereby the High Court dismissed the appeal filed by the appellant herein and partly allowed the cross objections filed by the respondents herein and enhanced the compensation as mentioned in detail infra.

3) We herein set out the facts, in brief, to appreciate the issues involved in these appeals.

4) On 12.11.2003, the State of Andhra Pradesh issued a notification under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as “the Act”) and acquired the land measuring about 10100 acres (SY No.398/3 and other connected survey numbers) situated at Jagitial Municipality, District Karimnagar (AP). The acquisition of land was for a public purpose, namely, "laying new broad gauge single railway line from Karimnagar to Jagitial Phase –II by the appellant-Railways". This was followed by issuance of notification under Section 6 of the Act and then possession on 02.12.2003.

5) The Land Acquisition Officer (LAO) started proceedings under Section 11 of the Act for determination of the compensation payable to the landowners for their lands. By award No.26/2006 dated 14.07.2006, the LAO determined the market value of the acquired land at the rate of "Rs.1,30,000/per acre for wet lands" and "Rs.1,24,000/per acre for dry lands". The LAO also awarded compensation for structures, wells etc. to some landowners.

6) The claimants (landowners) felt aggrieved and sought reference under Section 18 of the Act to the Civil Court in OP No.27/2007. By award dated 23.07.2010, the Civil Court (Sr. Civil Judge, Jagitial) re-determined the market value of the land in question. The Reference Court determined the market value of the acquired land at Rs.21,29,600/per acre uniformly. However, having regard to the totality of facts of the case, the Reference Court considered it just and proper to deduct 50% towards developmental charges and accordingly worked out the market value of the land at "Rs.10,64,800/per acre" for being paid to the landowners.

7) The appellant-Railways felt aggrieved and filed appeal before the High Court of Andhra Pradesh whereas the landowners also felt aggrieved and filed cross objections claiming enhancement of the market value determined by the Reference Court.

8) By impugned judgment, the High Court dismissed the appeal filed by the appellant-Railways and partly allowed the cross objections filed by the landowners and enhanced the compensation to Rs.15,97,200/per acre. The High Court, upheld the market value determined by the Reference Court i.e. Rs.21,29,600/per acre but reduced the deduction towards developmental charges from 50% to 25% and accordingly worked out the compensation “at the rate of Rs.15,97,200/per acre”. It is against this judgment, the appellantRailways felt aggrieved and filed the present appeals by way of special leave before this Court.

9) Heard Mr. Vikramjit Banerjee, learned Additional Solicitor General for the appellant-UOI and Mr. B. Adinarayana Rao, learned senior counsel for the respondents.

10) Mr. Vikramjit Banerjee, learned Additional Solicitor General appearing for the appellant while assailing the legality and correctness of the impugned judgment essentially made two submissions.

11) In the first place, learned ASG contended that the High Court erred in further enhancing the compensation at Rs.15,97,200/ per acre.

12) According to him the compensation determined by the Reference Court payable at the rate of Rs.10,64,800/per acre was just, legal and proper and, therefore, it did not call for any further enhancement.

13) In the second place, learned ASG urged that having placed reliance on exemplar Sale Dee