(Per Ghulam Mohammed, J.)

The Mandal Revenue Officer, who is Land Acquisition Officer, Jagtial, filed the present appeal under Section 54 of the Land Acquisition Act, 1894 (hereinafter referred to as "the Act") assailing the award dated 01-05-2007 rendered by the II Additional O.P.No.198 of 2004, whereby and whereunder the reference Court fixed the market value of the lands acquired at Rs.1,02,000/- per acre uniformly for both wet and dry lands with 30% solatium and interest at 9% per annum for one year from the date of taking possession, i.e. 04-09-1982 and thereafter at 15%p.a. both on the principal market value and the solatium till the entire amount is paid or deposited into Court excluding the interest for the period from 13-02-1996 to 29-04-1999 and disallowing additional market value at 12% per annum in view of the bar under Ex.B.2 order of this Court dated 13-09-2004 in W.P.No.9805 of 1999.

2. The factual background for the appeal is that the lands of the claimants admeasuring Ac.68.16 guntas of wet and dry lands in different survey numbers situated at Jagtial village were acquired for the purpose of construction, of summer storage tank to supply water to the public living in Jagtial by issuing a draft notification under Section 4 (1) of the Act, which was published in the official Gazette. The Land Acquisition Officer fixed the market value of the lands at Rs.12,200/- per acre for dry lands and Rs.13,000/- per acre for wet lands, apart from awarding a sum of Rs.32,060/- for 13 wells. As the acquired lands were taken over possession prior to Section 4(1) notification, the Land Acquisition Officer awarded interest and 30% solatium for the acquired lands by fixing the market value at Rs.6,000/- per acre for dry lands and at Rs. 7,500/- per acre for wet lands only for the purpose of calculating interest.

3. When the claimants submitted representations on 20-03-1995 requesting to refer the matter to Civil Court, the Land Acquisition Officer rejected the same by a memo dated 13-02-1996. Thereafter, the claimants approached the High Court by way of W.P.No.9805 of 1999 with a request to direct the Land Acquisition Officer to refer the matter to Civil Court under Section 18 of the Act, wherein the High Court by the order dated 13-09-2004, directed the Land Acquisition Officer to refer the matter to Civil Court, while disentitling the claimants to interest for the period from 13-02-1996 to 29-04-1999 and also additional amount of compensation under Section 23 (1-A) of the Act.

4. Pursuant thereto, the matter was referred to Civil Court under Section 18 of the Act. Before the reference Court, PWs. l to 10 and RW.1 were examined and Exs.A.1 to A.18 and B.1 to B.3 were marked. The reference Court, after considering the oral and documentary evidence on record and relying on the sale transactions, fixed the market value of the lands at Rs.1,02,000/- per acre uniformly for wet and dry lands with 30% solatium and interest at 9% p.a. for one year from the date of taking possession i.e. 04-09-1982 and thereafter at 15% p.a. both on the principal market value and the solatium till the entire amount is paid or deposited in the Court excluding the period from 13-02-1996 to 29-04-1999, while not granting additional market value at 12%p.a. for the said period in view of the bar created by Ex.B.2, Order of this Court dated 13-09-2004 in W.P.No.9805 of 1999. Challenging the said award, the present appeal has been filed by the Land Acquisition Officer.

5. The claimants also filed cross-objections on various grounds against the award insofar as it relates to them.

6. Learned Government Pleader for Appeals and the learned counsel for the respondents are heard in extenso.

7. Sri Y. Chandrasekhar, learned Special Government Pleader, vehemently argued on the following points:

(1) The enhancement made by the reference Court is improper and unsustainable;

(2) The escalation granted at 20% by the reference Court is not justified in law and is impermiss