In determining compensation under land acquisition, reliance on comparable sales is essential to reflect fair market value, and separate compensation for distinct improvements is permissible.

JUDGMENT:

Vakiti Ramakrishna Reddy, J.

1. This Appeal filed under Section 54 of the LAND ACQUISITION ACT , 1894 (hereinafter referred to as “the Act”), is directed against the Order and Decree dated 08.03.2007 passed in O.P. No. 703 of 2003 on the file of the Principal District Judge, Medak (hereinafter referred to as the “Reference Court”).

2. By the impugned order, the Reference Court enhanced the compensation originally awarded by the Land Acquisition Officer (for short, “LAO”) in respect of the acquired lands. The LAO had fixed the market value at Rs.45,000/- per acre for Category-A, Rs.30,000/- per acre for Category-B and Rs.20,000/- per acre for Category-C lands. The Reference Court enhanced the said values to Rs.1,93,600/, Rs.1,45,200 and Rs.96,800/- per acre respectively. Aggrieved thereby, the present appeal is preferred by the LAO, Revenue Divisional Officer, Siddipet.

I. BRIEF FACTS

3. The subject acquisition pertains to a total extent of Ac. 58-36 guntas of agricultural land situated in Survey Nos. 390 and 418 of Narsapur Village and Survey Nos. 415 and 442 of Mittapally Village, within Narsapur Mandal, Siddipet (erstwhile Medak) District. The lands were acquired for a public purpose, namely, excavation of a feeder channel as part of an irrigation development programme.

II. NOTIFICATION AND AWARD

4. A preliminary notification under Section 4(1) of the LAND ACQUISITION ACT , 1894 was published on 09.07.1999. Pursuant to the said notification, the LAO issued notices under Sections 9(3) and 10 of the Act, inviting objections and claims from the interested persons. Thereafter, an award enquiry was conducted by the LAO in accordance with law.

5. After completion of the enquiry, the LAO passed an award dated 21.05.2001, wherein the acquired lands were categorised into Category–A, Category–B, and Category–C. The basis for such categorisation, as recorded by the LAO, was the nature and quality of the land, including:

(i) irrigation facilities available;

(ii) soil fertility and productivity;

(iii) proximity to water sources;

(iv) distance from the main road and village habitation; and

(v) overall potential for cultivation and yield.

6. Lands having assured irrigation and high fertility were placed in Category–A; lands with partial irrigation or moderate fertility were placed in Category–B; and lands that were dry, inferior, or lacking irrigation facilities were placed in Category–C.

7. Based on this classification, the LAO fixed the market value as follows:

Category–A: Rs. 45,000/- per acre;

Category–B: Rs. 30,000/- per acre; and

Category–C: Rs. 20,000/- per acre.

8. Not being satisfied with the compensation so awarded and contending that the categorisation as well as the valuation did not reflect the true market value of the lands, the claimants sought a reference under Section 18 of the Act, and the matter came to be registered as O.P. No. 703 of 2003 before the Reference Court.

III. POINT BEFORE THE REFERENCE COURT

9. Upon the basis of the pleadings and rival assertions, the Reference Court framed the following point for determination:

“Whether the market value fixed for the acquired lands can be enhanced and, if so, to what quantum?”

10. The Court noted that the entire adjudication revolved around the adequacy of compensation awarded by the LAO under Section 11 of the Act and the claimants’ assertion that the compensation did not reflect the true and fair market value of the lands on the date of the Section 4(1) notification.

IV. EVIDENCE

11. In order to substantiate their claim for enhancement of compensation, the claimants examined PWs 1 to 7. Through them, the claimants marked Exs.A1 to A21, which include, Exs.A1 to A3 – Tonch Maps showing the detailed location, boundaries, and classification of the lands, Exs.A4 and A5 – certified copies of Revenue Maps, Exs.A7 to A16 – certified copies of various sale deeds reflecting the prevailing market value in the vicinity, Exs.A17 to A21 – certified copies of orders relating to comparable acqu