The court upheld the trial court's enhanced compensation ruling, emphasizing that higher market values must be considered in land acquisition cases, allowing for smaller sales as indicators under proper reasoning.

JUDGMENT :

Tirumala Devi Eada, J.

This appeal, under Section 54 of the LAND ACQUISITION ACT , 1894, (for short ‘the Act’) is preferred by the Special Deputy Collector, Karimnagar aggrieved by the order and decree dated 13.06.2003 passed in O.P.No.113 of 1997 by the learned Senior Civil Judge at Karimnagar (hereinafter referred to as ‘the trial Court’).

2. The appellant – Special Deputy Collector is aggrieved by the order of the trial Court enhancing the compensation from Rs.16,800/- per acre that was granted by the Land Acquisition Officer to that of Rs.1,46,000/- per acre.

3. X-Objections are filed by the respondents - claimants praying for enhancement of the market value of the acquired lands to Rs.4,00,000/-. It is their contention that the lands which were acquired are useful for residential house purposes and that the Court below while enhancing the market value ought to have considered that the neighbouring lands are sold for residential houses, medical, educational institutions, industrial and commercial establishments and that documentary evidence was filed to the said effect. It is their further contention that the acquired lands in subject matter O.P.No.04 of 1998 were purchased by the claimants therein by forming into house building society and many plots were sold in the year 1988 and that the acquisition has taken place when the construction was about to get started and in the vicinity there were rice mills, poultry farms and dairy farms. They further contended that the evidence of PWs 1 to 5 and the documentary evidence under Exs.A1 to A9 ought to have been considered by the Court below. That the lands acquired are situated nearer to Karimnagar Town and that they are just 1 KM away from the Government Hospital, Karimnagar and that during the pendency of the acquisition proceedings the area in which the acquired lands are situated, was brought under the purview of the Municipal Corporation of Karimnagar. Therefore, they prayed for enhancement of compensation to Rs.4,00,000/- per acre.

4. For convenience and clarity, the parties herein are referred to as they were arrayed before the trial Court.

5. The facts of the case in brief are that based on the requisition made by the Deputy Chief Engineer South Central Railway, land to an extent of Ac.29.16 guntas situated in the limits of Bommakal village of Karimnagar Mandal and District was acquired, for the purpose of laying railway line. A draft notification was issued under Section 4(1) and 6 of the Act on 17.10.1995 in the Gazette and on 14.11.1995 in the local news paper. After conducting the due enquiry, the LAO has fixed the market value of the land as Rs.16,800/- per acre. Aggrieved by the said award, the claimants have filed a petition for reference and the same was referred under Section 18 of the Act to the trial Court.

6. The trial Court has framed the following point for consideration:

“Whether the claimants are entitled for enhancement of compensation, if so, at what rate?”

7. The claimants before the trial Court got examined PWs 1 to 5 and Exs.A1 to A10 were marked. One Manzoor Ahmed, Special Deputy Collector, Land Acquisition Unit, S.C.Railway, Karimnagar got examined as RW1 and Exs.B1 and B2 were marked.

8. Based on the evidence on record, the trial Court has enhanced the compensation from Rs.16,800/- per acre to Rs.1,46,000/- per acre. Aggrieved by the said enhancement, the Special Deputy Collector has preferred the present appeal.

9. Heard the submissions of Ms.T.Suhasini, learned Standing Counsel for the appellants and Sri V.R.Avula, learned counsel for the respondents.

10. The lear