The rate of interest payable on compensation for land acquisition in Andhra Pradesh is 4% per annum, as provided in the Land Acquisition Act as amended by the Andhra Pradesh Amendment Act, 12 of 1953.

P. RAMACHANDRA RAJU, J.

( 1 ) AN extent of Ac. O. 18 guntas of land in S. NO. 155/2 of Bhuktapur village, part of abilabad town was acquired by the Government for the construction of a vegetable market by the adilabad Municipality. A draft notification dated 21-3-1975 was published in the gazette dated 17-4-1975. The declaration under section 6 was published in the gazette on 8-5-1975. Possession of the land was taken on 21-2-1976. Before the land acquisition officer the appellant claimed compensation at the rate of Rs. 300. 00 per square yard. He further claimed Rs. 70,000. 00 towards the cost of the building Rs. 9,000. 00 towards the cost of the compound wall and Rs. 3,000. 00 for a well. According to the appellant, the building, compound wall and well are existing by the date of the draft notification and he should be compensated for such building compound wall and well at the rates claimed by him. The land Acquisition officer held that the appellant constructed the building well and compound wall after the publication of the draft notification and the appellant was, therefore not entitled to be compensated for those structures. The land acquisition officer felt that the values reflected by certain sales cannot be considered for the various reasons given by him in his award. He collected some particulars regarding the annual rental values of sites in that locality and adopted the capitalisation method and fixed the market value of the land at Rs. 70,691-33 ps after making various deductions on different accounts he provided interest at 4% from the date of taking possession and ultimately awarded a sum of Rs. 90. 689-03 which besides solatium also included the interest calculated till 12-1-1979. On an application by the appellant, the necessary reference under section 18 was made to the civil Court. The said reference was numbered as O. P. No. 108/79 and was disposed of by the additional district Judge, Adilabad, by his order dated 31-12-1980. The Additional district judge did not approve of the capitalisation method adopted by the land acquisition officer. He evaluated the evidence and held that the market value should be fixed at Rs. 75. 00 per sq. Yard He deducted 25% towards the costs of amenities and enhanced the total additional compensation payable to the appellant by Rs. 60,810-69 p. He held that the house compound wall and well were constructed after the date of publication of the draft notification and he rejected the claim made by the appellant for compensation in that behalf he did not however indicate in that judgment as to the amounts if any awardable to the appellant in case compensation became payable to the appellant on account of the cost of such building compound wall and well. The appeal was argued once before us. By order dated 4-3-1982 we called for a finding regarding the amount of compensation that may be payable to the appellant for the building, compound wall and well. As certain documents which were filed in the appeal were not filed earlier before the Additional district Judge we also directed the Additional District judge to consider the claim of the appellant afresh in the light of those documents and in the light of any further evidence which the parties may adduce and determine afresh the point of time at which the building compound wall and the well have been erected or dug by the appellant. The learned Additional district Judge has recorded the following findings:"there were no constructions on the acquired site except foundations of 50 x 60 by the date of notification under section 4 (1 ). The claimant failed to adduce any positive evidence as regards the actual expenses incurred for the construction of the building compound wall and the well. However, since the revenue divisional officer has estimated the value of the building and the well in the P. V. statement the same can be adopted as the value for the well and the building inclusive of the compound wall". It may be noted that the valu

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