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2026 Supreme(AP) 1086

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
BATTU DEVANAND, SUBHENDU SAMANTA, JJ.
Modepalli Chinna Venkatapathi S/o Chinna Narappa - Appellant
Vs.
The Land Acquisition Officer, (Special Deputy Collector, Kadapa) - Respondent
Land Acquisition Appeal Suit No. 454 of 2017
Decided On : 02-04-2026

Advocates:
Advocate Appeared:
For the Appellant : GP For Appeals (AP)
For the Respondent: P Kamlakar

In land acquisition cases, where specific yield-based capitalization is not fully supported by evidence, courts may determine compensation for fruit-bearing trees based on consistent judicial precedents and fixed per-tree values to ensure reasonable and uniform compensation.

Headnote:(A) Land Acquisition Act, 1894 - Section 18 and 23(2) - Compensation for land and fruit-bearing trees - Methodology for valuation - Capitalization of yield versus per-tree valuation based on precedents.

Facts of the case:
The claimant's land (Ac. 4-04 cents) was acquired for the construction of a spillway. The Land Acquisition Officer awarded compensation for land and trees. The claimant sought enhancement, contending the land was horticultural garden land and undervalued, and that the well and bore-well were not adequately compensated. The Reference Court enhanced the compensation, leading both the claimant and the LAO to file appeals.

Issues: (1) Whether the compensation fixed for the acquired land and fruit-bearing trees was justified. (2) Whether the claimant was entitled to enhanced compensation.

Findings of Court:
The court upheld the valuation regarding fruit-bearing trees based on established judicial precedents, awarding Rs.3,000 per tree for Guava, Mango, and Sapota trees, plus compensation for the bore-well, while rejecting the claim for further land value enhancement due to insufficient evidence.

Ratio Decidendi: Valuation of horticultural land can be based on consistent judicial rates for fruit trees when specific income capitalization data is insufficiently substantiated, ensuring uniformity and justice in state acquisitions.

Result: Appeals disposed of with modified compensation.

JUDGMENT:

(Per Hon’ble Sri Justice Battu Devanand)

The Land Acquisition Appeal Suit No.454 of 2017 filed by the claimant and Land Acquisition Appeal Suit No.263 of 2018 filed by the Land Acquisition Officer (for short “LAO) against the order, dated 23.12.2016 passed in LAOP No.529 of 2010 on the file of the VI Additional District Judge, Kadapa (hereinafter referred to as “Reference Court”).

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

3. The brief facts of the case:

(i) The land to an extent of Ac.33.22 cents lying in different survey numbers of Parnapalli Village, Lingala Mandal, was acquired for construction of Spill Way of Chitravati Balancing Reservoir at Parnapalli Village. The draft notification was published in Gazette, dated 14.02.2001. The draft declaration was passed in Gazette, dated 16.02.2001. The said lands are rain-fed lands. Nature of the lands is red soil and black cotton soil. Rain-fed crops like ground-nut, etc., were being raised.

(ii) Ac.4-04 cents out of 12.10 cents lying in Sy.No.381 of Parnapalli belonged to the claimant were acquired. In the said extent of Ac.4.04 cents, there were 460 Guava trees, 04 Mango trees and 01 Sapota tree. The land was said to be irrigated with bore-well water. The LAO had considered 57 sale deeds pertaining to surrounding lands of Parnapalli Village during three years prior to the date of notification i.e., from February, 1999 to February, 2002. Considering the value of the sales of such lands, the LAO fixed the value for Ac.1-00 cents at Rs.35,500/-. With regard to the value of the fruit bearing Guava trees raised in the land of the claimant, the report of the Horticulture Officer was considered basing on G.O.Ms.No.601, Revenue (LA) Department, dated 16.06.1992 and awarded Rs.1,43,420/-. In addition to the market value, solatium at 30% as provided under Section 23(2) of the Act, 12% additional market value from the date of draft notification i.e., 26.02.2001 to the date of award, dated 05.08.2002 were granted.

4. Dissatisfied with the compensation awarded by the LAO, the claimant filed claim application under Section 18 of the Land Acquisition Act (for short “Act”) for referring the award No.8/2002-2003 passed by the LAO. Accordingly, the LAO referred the matter to the Reference Court.

5. The claim of the claimant before the Reference Court is that the LAO has not followed correct method for fixing the market value of the acquired land and Ac.1-00 cents was worth Rs.1,00,000/- and the subject land was garden land irrigated with the help of bore-well water. The LAO has considered the land in the category of dry land. It is also contended that the LAO has failed to give compensation to the existing well and bore-well worth Rs.50,000/-. The capitalization method for fixing the value of trees was not followed.

6. The LAO denied the contention of the claimant and has asserted that the value of the land and fruit bearing tress were properly assessed.

7. P.W.1 was examined and Ex.A.1 to Ex.A.5 and Ex.X.1 and Ex.X.2 were marked on behalf of the Referring Officer. R.W.1 to R.W.5 were examined and Ex.B.1 to Ex.B.4 were marked on behalf of the claimant.

8. Considering the contentions of both parties, the Reference Court framed the following issues for consideration:

(1) Whether the compensation fixed for the acquired land and fruit bearing tress that belonged to the claimant under the award is justified?

(2) Whether the claimant is entitled to enhance the compensation as pleaded by him?

9. The Reference Court having considered the contentions of respective parties and upon consideration of the evidence available on record and the case law relied by the parties, allowed O.P. by decree and order, dated 23.12.2016 with the following order:

(i) The value of the land per acre is fixed at Rs.50,000/-;

(ii) The value of fruit bearing tress is determined at Rs.3,64,209/-;

(iii) Rs.10,000/- was allowed towards value of the well;

(iv) T

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