Market value of acquired land must reflect its potentiality and nature, with appropriate deductions for development costs applied.

ORDER :

Ninala Jayasurya, J.

The appellants / claimants aggrieved by a Common Order dated 08.08.2007 in O.P.Nos.111, 112, 114, 115, 117, 118, 119, 120, 121, 123, 124, 125, 127 and 128 of 2003 on the file of the Court of Principal Senior Civil Judge, Nandyal (hereinafter referred to as ‘the Reference Court’), preferred the present batch of appeals with regard to fixation of market value in respect of three categories of lands acquired from them, the details of which are as follows:

Category No.1:

Category No.2

Category No.3

Brief facts of the case:

2. For the purpose of construction of a spill way and formation of surplus course, a Draft Notification under Section 4 (1) of the Land Acquisition Act (hereinafter referred to as ‘the Act’) was published on 18.03.1994 for acquisition of land of an extent of Ac.25.66 cents in various survey numbers belonging to the appellants / claimants and others situated in Owk village of Banaganapalle Mandal, Kurnool District. The Draft Declaration under Section 6 of the Act was published simultaneously. After issuing notices as per the provisions of the Act, the Land Acquisition Officer conducted enquiry and passed Award No.26/1993-94 dated 31.03.1994. The Land Acquisition Officer classified the land under acquisition into three categories i.e.,

(i) Dry lands without irrigation potentiality;

(ii) Dry lands with irrigation potentiality with the water of wells; and

(iii) Dry lands having house site potentiality with approved lay out plans and situated near the industrial area.

3. The Land Acquisition Officer while fixing the market value of the land, considered as many as 163 sale transactions occurred in the village, three years prior to the issuance of Section 4 (1) Notification. Basing on the sale transaction at S.No.58 of the sale statistics, the Land Acquisition Officer fixed the market value of the Category No.2 @ Rs.59,000/- per acre. Insofar as Category Nos.1 and 3 lands are concerned, he fixed the market value @Rs.30,000/- and Rs.5,00,000/- per acre respectively.

4. Having dissatisfied with the compensation awarded by the Land Acquisition Officer, the appellants / claimants received the same under protest and sought reference under Section 18 of the Act seeking compensation @ Rs.10,00,000/- per acre.

5. Before the Reference Court, on behalf of the Referring Officer, P.Ws.1 and 2 were examined and Ex.A1-Copy of the Award No.26/1993-94 dated 31.03.1994 was marked. However, the evidence of P.W.1 was eschewed. On behalf of the claimants, R.Ws.1 to 4 were examined and Exs.B1 to B7 were marked.

6. The Reference Court formulated a point as to whether the Award passed by the Land Acquisition Officer is just and proper, if not, what should be the proper estimate of the market value of the land under acquisition, for which the claimants are entitled?

7. Answering the said point, the learned Reference Court examined the oral and documentary evidence and enhanced the market value of Category-1 Dry lands without irrigation potentiality from Rs.30,000/- to Rs.45,000/- per acre, Category-2 Dry lands with irrigation potentiality with the water of wells from Rs.59,000/- to Rs.88,000/- and Category No.3-Dry lands having house site potentiality with approved lay out plans and situated near the industrial area from Rs.5,00,000/- to Rs.7,00,000/- per acre. The Reference Court