IMPORTANT POINT
The court affirmed that compensation for land acquisition must reflect fair market value, supported by evidence, ensuring just compensation for claimants.

JUDGMENT:

(Ninala Jayasurya, J.) :

Feeling aggrieved by the common order dated 06.8.2010 of the II Additional Senior Civil Judge, Nandyal in Original Petition Nos.424, 425 and 426 of 2009 enhancing the compensation from Rs.12,600/- to Rs.34,600/- per acre, the present appeals have been preferred.

2. For excavation of 8R Sub-Minor of Singavaram Major Distributory Canal from KM 0.000 to 1.270 KM in Block No.6 of Telugu Ganga Project, a Gazette Notification dated 12.1.1996 under Section 4(1) of the Land Acquisition Act, 1894 was issued for acquisition of total extent of Acs.4.01 cents situated in various survey numbers of Ramapuram Village, Bandi Atmakur Mandal. The Draft Notification was published on 15.6.1996 and after issuing Draft Declaration, Award enquiry was conducted on 07.12.2001 and 26.12.2001. Subsequently, Award No.6 of 2001 dated 31.12.2001 was passed. For the purpose of awarding compensation, the Land Acquisition Officer had classified the subject matter lands as rainfed dry lands and fixed the market value at Rs.12,600/- per acre, while allowing the other benefits of solatium, additional market value etc. Dissatisfied with the market value fixed by the Land Acquisition Officer, the claimants received the compensation under protest and sought for enhancement of the compensation of the market value at the rate of Rs.2,00,000/- per acre, by referring the matter to the Civil Court.

3. Before the Reference Court, the claimants examined R.Ws.1 to 4 on their behalf and got marked Exs.B.1 to B.5. The Referring Officer had not adduced either oral or documentary evidence. Ex.A.1, copy of the Award No.6 of 2001 dated 31.12.2001 was marked with consent.

4. While deciding the question as to whether the Award No.6/2001 dated 31.12.2001 does not adequately compensate the claimants for the loss of their lands, the learned Reference Court, after considering the material on record, enhanced the market value. Aggrieved by the enhancement of compensation of the lands from Rs.12,600/- to Rs.34,600/- per acre, State filed these appeals.

5. Mr.T.S.Rayalu, learned Government Pleader, assailing the said enhancement, inter alia contends that the learned Reference Court without any valid basis enhanced the compensation and the same is not sustainable. It is his contention that the differential amount of Rs.2,100/-, which is added to the value of the land at Rs.18,000/- per acre, is without any valid basis and no cogent reasons were assigned for adding the said amount of Rs.2,100/-. He also contends that the value appreciation of the subject lands at the rate of 12% per annum, as adopted by the learned Reference Court, is not tenable and no reasons much less cogent reasons were assigned for fixing the same. Placing reliance on the decision of a Division Bench of the erstwhile common High Court in L.A.A.S.No.1 of 2010 and batch, dated 21.11.2013, he contends that at the most, escalation of prices may be taken at 10% and the value appreciation should have been fixed at 10% per annum. In any event, the learned Government Pleader submits that the enhancement, as made by the learned Reference Court, is on higher side and the order under challenge is liable to be set aside. Making the said submissions, he seeks to allow the appeals.

6. We have considered the submissions made by the learned Government Pleader and perused the material on record. It is pertinent to note that large extents of lands were acquired for the purpose of Telugu Ganga Project canal in the year 1990 and in respect of the lands in Chinnadevalapuram Village, as per the evidence adduced by the claimants, the market value was fixed at Rs.10,000/- per acre and on reference, the same was enhanced to Rs.18,000/- per acre. The subject lands are adjacent to Chinnadevalapuram Village and they are similar in nature with regard to its potentiality and market value.

7. Be that as it may. The learned Reference Court referring to Exs.B.2 and B.4 i.e., common order in O.P.Nos.1 to 19 of 2009 an