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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
NINALA JAYASURYA, T. MALLIKARJUNA RAO, JJ.
The Special Deputy Collector - Appellant
Versus
S. Chandrasekhar Reddy - Respondent
Land Acquisition Appeal Suit Nos: 226, 225 (X-Obj No.15469/2013) 227 (X-Obj No.15463/20133), 239, 240 (X-Obj No.15470/2013), 241(X-Obj No.15478/2013), 242, 2466, 419, 438, 439, 440 (X-Obj No.15467/20013), 441, 442, 443(X-Obj No.15477/2013), 444, 445 (X-Obj No.15460/2013), 447(X-Obj No.1189/2014), 448,, 449(X-Obj No.15466/2013), 450, 451(X-Obj No.15459/2013), 452 (X-Obj No.15458/2013), 453, 454 (X-Obj No.155457/2013), 456(X-Obj No.15461//2013), 457(X-Obj No.15473/2013), 458(XX-Obj No.15456/2013), 459, 460 (X-Obj No.15462/2013), 461, 462, 463, 464 (X-Obj No.15464/2013), 465, 467 (XX-Obj No.15471/2013), 539 (X-Obj No.100730/2015), 555(X-Obj No.1190/2014), 556 (X-Obj No.15468/2013), 559, 566, 5884, 586 (X-Obj No.15455/2013), 587, 594 OF 2013 AND L.A.A.S.Nos.43(XX-Obj No.2556/2014), 45(X-Obj No.2557/2014), 48(X-Obj No.2558/2014), 77, 225, 226, 227, 228, 232 OF 2014 (X-Obj No.10745/2014) AND L.A.A.S.No.305 OF 20015 (X-Obj No.9002/2016)
Decided On : 03-01-2025

Advocates Appeared:
For the Appellant : GP for Appeals (AAP)
For the Respondent: K. Rathanga Pani Reddy.

The court upheld the Reference Court's compensation enhancement for acquired land, emphasizing the burden of proof on claimants to demonstrate inadequacy of the initial award and reliance on valid market comparisons.

Headnote:(A) Land Acquisition Act, 1894 - Sections 4(1), 17(4), 18, and 23 - Compensation for acquired land - Market value enhancement upheld from Rs.45,000/- to Rs.1,13,000/- per Acre for dry land and from Rs.65,000/- to Rs.1,33,000/- per Acre for irrigated land - Assessment not based on valid comparable sales or land potential in LAO's award leading to rejection - Reference Court determined the compensation appropriately, awarding 30% solatium and interest. (Paras 1, 11, 19-21, 45, 56)

(B) Burden of proof - Claimants responsible to demonstrate higher value than LAO's assessment - Evidence of land potential, past compensation awards considered; insufficient information led to rejection of claims for mineral deposits. (Paras 25-40)

Facts of the case:
The Appeals arise from enhancement of compensation for land acquired under Notification dated 28.02.2006, with Claimants dissatisfied by the initial award leading them to file under Section 18 of the Act. The LAO determined values lower than market rates and failed to provide necessary evidence for land classification.

Findings of Court:
The Reference Court found the initial valuations inadequate and provided appropriate compensation based on market realities and land potential.

Issues: 1) Was market value fixed by LAO justified? 2) Were Claimants entitled to higher compensation? 3) Is interference in Reference Court's order warranted?

Ratio Decidendi: The Reference Court correctly determined that the LAO's classification of land and compensation was unjustified and enhanced compensation according to past awards and evidence submitted.

Result: Appeals and Cross Objections dismissed.

Table of Content
1. background of land acquisition appeals (Para 1 , 2 , 5 , 6 , 7)
2. court enhances compensation for land acquisition disputes. (Para 4)
3. claimants argue for enhanced compensation (Para 8 , 12 , 13)
4. court addresses claims and evidence presented (Para 9 , 14 , 40 , 54)
5. legal principles for determining compensation (Para 15 , 19 , 30 , 39 , 50 , 52)
6. determination of compensation needs evidence of prior market value. (Para 20 , 28)
7. final decision on appeals (Para 56)

JUDGMENT :

(T. Mallikarjuna Rao, J.)

1. These Land Acquisition Appeal Suits arise out of the Common Order, dated 29.02.2012, passed in LAOP.No.1 of 2008 and batch on the file of Senior Civil Judge, Allagadda (hereinafter referred to as "Reference Court") whereby the compensation for the land acquired was enhanced from Rs.45,000/- to Rs.1,13,000/- per Acre for dry land and Rs.65,000/- to Rs.1,33,000/- per Acre for I.D. land.

2. This batch of Appeals and Cross Objections arise from the same land acquisition Notification dated 28.02.2006 for the land of village Perusomula Village, Sanjamala Mandal, Kurnool District and involve common facts and questions; therefore, with the consent of the learned counsels for the parties, all these first Appeals have been heard together treating the LAAS No.226 of 2013 as the leading first Appeal.

3. For the sake of convenience, the Parties will be hereinafter referred to as per their ranking in the Reference Court.

4. The Government has issued a Notification under Section 4(1) of the LAND ACQUISITION ACT , 1894 (hereinafter referred to as 'the Act') dated 28.02.2006. The Land Acquisition Officer fixed the market value of the lands at the rate of Rs.45,000/- per Acre for dry land and for Rs.65,000/- per Acre for I.D. land with bore wells vide Award No.4/2006-07 dated 28.07.2006.

5. Dissatisfied with the compensation awarded in Award No.4/2006-07 dated 28.07.2006, passed by the Land Acquisition Officer (hereinafter referred to as ‘LAO’), several Land Owners submitted references under Section 18 of the Act. These references were adjudicated by the Common Order dated 29.02.2012 in leading LAOP.No.1 of 2008 and batch before the learned Senior Civil Judge, Allagadda. The Reference Court enhanced the market value of the acquired land from Rs.45,000/- to Rs.1,13,000/- per Acre for dry land and Rs.65,000/- to Rs.1,33,000/- per Acre for I.D. land with bore wells.

6. Aggrieved by this common order, the Appellant/Referring Officer filed the present batch of First Appeals. Some of the Claimants also preferred Cross Objections.

7. Briefly stated facts of the present Appeals for referring to matters by the Special Deputy Collector (L.A.) GNSS, Unit-I, Nandyal, to the Civil Court under Section 18 of the Act are as follows:

(a) The Special Deputy Collector (LA) (FAC) GNSS Unit-I, Nandyal, and the Executive Engineer, GNSS Division No.5, Jammalamadugu, submitted requisitions dated 19.08.2005 and 27.12.2005 for the acquisition of 152.24 acres of land in Perusomula Village, Sanjamala Mandal, Kurnool District, for the excavation of the GNSS Flood Flow Canal. Under Section 17(4) of the L.A. Act, urgency was invoked, and the enquiry under Section 5(A) was dispensed with. Some lands were under the control of the Endowment Department, with compensation directed to be paid to the Assistant Commissioner. The lands were classified as dry land, and the D.N. proposal for 149.03 acres was approved on 15.02.2006. The Section 4(1) notification was published in the Kurnool District Gazette on 28.02.2006, and the draft declaration was published in relevant local offices on 13.04.2006.

(b) To determine the market value, the LAO considered sale transactions from the three years before the Notification under Section 18 of the Act. However, all transactions from the Sub-Registrar, Owk, were discarded. The market value was fixed at Rs.45,000/- per Acre for dry land and Rs.65,000/- per Acre for irrigated land with bore wells. The Claimants, however, were n

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