JUDGMENT :

This appeal is by the State under Section 54 (1) of the Land Acquisition Act, 1894 impugning the judgment and award dated 18.10.2014 in LAC.No.41/2011 on the file of the Senior Civil Judge and JMFC, Sindagi (for short, "the Reference Court"). The Reference Court has enhanced the assessment of the market value of the land to Rs.6,77,000/-per acre from Rs.26,580/-per acre as awarded by the Land Acquisition Officer holding that respondents (hereafter referred to as ‘the Claimants’) would be entitled for all statutory benefits accordingly with an addition at 5% of the total compensation as damages for severance.

2. The claimants’ land measuring 03 acres 06 guntas in Sy.No.808/2 of Devar-Hippargi Tq: Sindagi Dist: Vijayapura (hereafter referred to as ‘the subject property’) is notified for acquisition for the purpose of construction of Electricity 110 K.V. station at Devar-Hipparagi, Tq: Sindagi Dist: Vijayapura. The notification under Section 4 (1) of the Land Acquisition Act is dated 12.04.2007. The Land Acquisition Officer has determined the market value of the subject property at the rate of Rs.26,580/-per acre applying the sale statistics method describing the land as Maradi land (dry land). The Land Acquisition Officer has secured the details of the sale deeds executed for the different survey numbers in Devar-Hipparagi, Tq: Sindagi Dist: Vijayapura between 2004 and 2007 from the Sub Registrar’s Office and has taken the average value of the transactions for the dry land in the village during this period as the market value.

3. The claimants, being aggrieved by this determination of the market value, have submitted an application for reference, which is registered with the Reference Court in LAC.No.41/2011. The claimants have examined one of themselves as PW.1 and marked different documents such as exhibits which include the Service Certificate dated 16.12.2013 issued by Hubli Electricity Supply Company Limited (Ex.P.4), RTC for the subject land for year 2007-08 (Ex.P.5), a certified copy of the sale deed dated 12.08.2011 for the land Sy.No.704/A measuring 06 acres 20 guntas of Devar-Hipparagi village Tq: Sindagi Dist: Vijayapura (Ex.P.6), RTC for the year 2013-2014 (Ex.P.7) and a certified copy of the judgment of this Court in MFA.Nos.31998/2011 and connected matters dated 08.02.2013 (Ex.P.8).

4. The Land Acquisition Officer has cross-examined PW.1, but has not otherwise led any evidence. The Reference Court referring to the different methods in law for determination of the market value viz., (a) expert’s opinion on market value, (b) sale statistics method and (c) capitalization method, has opined that there is no evidence for determination of the market value of the subject property based on an expert’s opinion and therefore the market value must be determined according based on the sale statistics. The Reference Court opining that the subject property is irrigated land has relied upon the terms of the exemplar sale deed as per Ex.P.6, a certified copy of the sale deed dated 12.08.2011, for determination of the market value to a sum of Rs.6,77,000/-per acre.

5. This sale deed, which is executed in the year 2011, is for a total extent of 06 acres 20 guntas with 02 guntas of pot kharab in Sy.No.704/A of Devar-Hipparagi village Tq: Sindagi Dist: Vijayapura for a total value of Rs.50,00,000/-, or at the rate of Rs.7,69,230/-per acre (Rs.50,00,000.00/6.50 acres = Rs.7,69,230/-per acre). This value is taken as the proximate value of the subject property, and to arrive at the market value as of the date of the preliminary notification, the Reference Court has provided de-escalation at the rate of 3% per annum as this sale deed is dated four years from the date of preliminary notification. Thus, the Reference Court has arrived at the rate of Rs.6,77,000/-per acre after deducting 12% (Rs.7,69,230/-minus 12% of Rs.7,69,230/-is Rs.6,76,922/-which is rounded off to Rs.6,77,000/-). In addition, the Reference Court, relying upon thi