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2025 Supreme(AP) 254

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI 
Ninala Jayasurya, T. Mallikarjuna Rao, JJ.
The Special Deputy Collector – Petitioner
Versus
S. Chandrasekhar Reddy – Respondent
Land Acquisition Appeal Suit Nos. 226, 225 (X-Obi No. 15469/2013)
Decided On : 03-01-2025

Advocates:
Advocate Appeared:
For the Petitioner: GP For Appeals (AP)
For the Respondent: K Rathanga Pani Reddy

The court affirmed that compensation for acquired land must reflect its market value based on comparable sales prior to acquisition, emphasizing the burden of proof lies with claimants to demonstrate inadequacy.

Headnote:

(A) Land Acquisition Act, 1894 - Sections 4(1), 18, 23(2) - Compensation for acquired land - Reference Court enhanced compensation 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 I.D. land - The LAO's valuation was deemed inadequate due to failure to consider market potential and comparable sales - Claimants argued for higher compensation based on mineral deposits and previous awards, but the Reference Court found insufficient evidence to support these claims. (Paras 1-56)

(B) Market Value Determination - The court emphasized that market value should be based on comparable sales prior to acquisition, not post-notification transactions - The burden of proof lies with the claimants to establish the inadequacy of the compensation awarded. (Paras 15-46)

(C) Evidence Evaluation - The court noted that the absence of evidence regarding mineral deposits undermined the claimants' assertions - The Reference Court's findings were upheld as sound and justified. (Paras 39-55)

Facts of the case:
The appeals arose from a common order enhancing compensation for land acquired for a flood flow canal, with claimants dissatisfied with the initial compensation set by the LAO.

Findings of Court:
The Reference Court's enhancement of compensation was justified based on inadequate valuation by the LAO and failure to consider relevant market data.

Issues: The main issues included the adequacy of the LAO's valuation, the classification of lands, and the claimants' entitlement to higher compensation.

Ratio Decidendi: The court ruled that the LAO's classification of lands was improper and that the claimants failed to provide sufficient evidence for their claims regarding mineral deposits.

Result: Appeals and Cross Objections dismissed.

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 not satisfied with the assessed market value.

8. In their respective OPs, the Claimants argued that the compensation granted by the LAO was insufficient, lacking justification and failing to follow the principles outlined under Section 23 of the Act. They contended that the LAO did not account for the potential of the acquired lands, comparable sales, or exercise individual discretion. The Claimants, who depend on the acquired land for agricultural purposes, also highlighted that they earn Rs.10,000

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