IMPORTANT POINT
The highest prevailing market value should be used to determine compensation for acquired lands, rejecting undervalued assessments by the Land Acquisition Officer.

JUDGMENT :

Laxmi Narayana Alishetty, J.

Heard learned Government Pleader for Appeals appearing for the appellant-Land Acquisition Officer and Sri A. Krupadhar Reddy, learned counsel for the respondents/claimants.

2. This appeal, under Section 54 of the Land Acquisition Act, 1894, (for short ‘the Act’) is filed by the Land Acquisition Officer, Ramagundam, aggrieved by the order and decree dated 12.03.2013 passed in O.P.No.38 of 2012 on the file of the Senior Civil Judge, Peddapalli (hereinafter referred to as “the Reference Court’).

3. In brief, the facts of the case are that the subject lands to an extent of Acs.13.20 ½ guntas situated in the limits of Garrepalli Village, Sulthanabad Mandal, Karimnagar District, belonging to the respondents/claimants were acquired for laying of Pipe line under Moulana Abdul Kalam Hyderabad Sujala Sravanthi Project (Godavari); that the Draft Notification under Section 4(1) of the Act was published in the A.P. Gazette on 07.05.2010; that after following the procedure prescribed under the Act and after conducting enquiry, the Land Acquisition Officer passed an Award, dated 20.05.2011, granting compensation @ Rs.86,000/- per acre for dry lands and @ Rs.96,000/- per acre for wet lands, along with solatium and other statutory benefits.

4. Not being satisfied with the compensation granted by the Land Acquisition Officer, the respondents/claimants sought reference under Section 18 of the Act and the same was numbered as O.P.No.38 of 2012 on the file of the Reference Court.

5. Before the Reference Court, on behalf of the respondents/ claimants, P.Ws-1 to 3 were examined and Exs.A-1 to A-3 were marked. On behalf of the Referring Officer, RW-1 was examined and Ex.B-1-Award was marked.

6. The Reference Court, on appreciation of the evidence on record, treated both the categories of wet and dry lands as one category and enhanced the compensation to Rs.6,00,000/- per acre for the acquired lands. Challenging the said order, the present appeal is filed.

7. It is contended by the learned Government Pleader for Appeals appearing for the appellant that the Reference Court erred in granting uniform compensation for both wet and dry acquired lands; that the Reference Court failed to take note of the fact that the Land Acquisition Officer has adopted the sale deeds pertaining to three years preceding the date of 4(1) notification for fixing the market value of the acquired lands and erred in placing reliance on Ex.A-1 which pertains to land situated far away from the acquired lands while determining the market value of the acquired lands; that the Reference Court erred in observing that the Land Acquisition Officer has followed pick and choose method while determining the market value of the acquired land and ultimately, the Reference Court erred in enhancing the compensation awarded by the Land Acquisition Officer and as such, the impugned order is liable to be set aside.

8. Per contra, learned counsel for the respondents/claimants contended that the Reference Court has rightly appreciated the evidence available on record and on finding that the compensation awarded by the Land Acquisition Officer does not commensurate to the potentiality of the subject acquired lands, and by taking into consideration the sale transaction under Ex.A-1, rightly enhanced the market value of the acquired lands and therefore, the impugned order needs no interference by this Court.

9. Before the Reference Court, the respondents-claimants have marked Ex.A-1-sale deed, whereunder the land covered therein was sold @ Rs.8,23,000/- per acre. P.W.1-one of the claimants and P.W-2-attestor of Ex.A-1 were examined, who reiterated the contents of Ex.A-1. Though P.Ws.1 and 2 were cross-examined at length, nothing contrary was elicited and their evidence stood unrebutted. P.Ws.1 and 2 in one voice stated that the acquired lands are abutting Rajiv State Highway. Even R.W-1 admitted that the acquired lands are abutting Rajiv State Highway leading from Ramagun