HON'BLE SRI JUSTICE ABHINAND KUMAR SHAVILI AND HON’BLE SMT. JUSTICE TIRUMALA DEVI EADA JUDGMENT: (per Hon’ble Smt. Justice Tirumala Devi Eada)

This appeal, under Section 54 of the Land Acquisition Act, 1894, (for short ‘the Act’) is preferred by the Land Acquisition Officer, Revenue Divisional Officer, Mulugu, Warangal District, aggrieved by the award and decree dated 24.03.2008 passed in L.A.O.P.No.766 of 2002 by the learned II Additional District Judge, Warangal (hereinafter referred to as ‘the Reference Court’).

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

3. The facts of the case in brief are that based on the requisition made by the Executive Engineer, I & CAD, Special Investigation Division, Warangal, for acquisition of the patta lands to an extent of Ac.04-05 guntas for forming flood bank at the right side of Dayyam Vagu and Goadavari River of Eturunagaram village, Warangal District. The draft notification under Section 4(1) of the Act was published in the Gazette on 26.03.2001 and the advance possession was taken over on 02.02.2001. After due enquiry, the Land Acquisition Officer (LAO) has passed an award on 19.10.2001 awarding a compensation of Rs.150/- per square yard for some house properties and Rs.130/- per square yard for the remaining house properties belonging to the claimants. 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 District Court, Warangal, for adjudication.

4. The case of the claimants is that their acquired lands fetch more market value and that the LAO has not considered the true market value and that they are entitled for enhancement of compensation to Rs.450/- per square yard. It is their contention that the lands acquired are in a busy locality and are near to the RTC bus stand, market and other shopping complexes and that the prevalent market rate is ranging from Rs.400/- to Rs.450/- per square yard.

5. The learned Government Pleader has also filed counter opposing the claim and stated that the LAO has passed the award after conducting thorough enquiry and that there is no need to enhance the amount any further.

6. Based on the averments, the reference Court has framed the following points for consideration:

“1) Whether the claim petitioners are entitled for enhancement of compensation of market value of the acquired lands, if so, at what rate?

2) Whether the claim petitioners are entitled to additional benefits, as provided by the land acquisition act, 1894? 3) To what relief?”

7. At the time of trial, the claim petitioners got examined PWs 1 to 4 and got marked Exs.A1 and A2, while the respondent got examined RW1 and got marked Exs.B1 and B2.

8. Based on the evidence on record, the reference Court has enhanced the compensation to Rs.300/- per square yard in respect of the category No.1 from that of Rs.150/- per square yard and in respect of category No.2 it was enhanced to Rs.280/- per square yard from that of Rs.130/- per square yard, apart from awarding the consequential statutory benefits. Aggrieved by the said award, the present appeal is preferred by the LAO.

9. Heard the submissions of the learned Advocate General for the appellant and Sri S.Lakshma Reddy, learned counsel for the respondents.

10. The learned appellant counsel has submitted that the LAO was right in awarding compensation to the claimants and that he has arrived at the said calculation after conducting a thorough enquiry and examined the sales statistics of the local area. He further argued that the trial Court ought to have seen that Exs.A1 and A2 pertains to a developed area but the acquired lands are located in an undeveloped area and thus, the reference Court ought not to have enhanced the compensation.

11. The learned respondents counsel, on the other hand, has argued that their lands fetch much more value as they are situated in a developed area and that there are no