THE HON’BLE SRI JUSTICE ABHINAND KUMAR SHAVILI AND THE HON’BLE SRI JUSTICE VAKITI RAMAKRISHNA REDDY APPEAL SUIT. No. 4195 of 2004 JUDGMENT: (Per Hon’ble Sri Justice Vakiti Ramakrishna Reddy This Land Acquisition Appeal, filed under Section 54 of the Land Acquisition Act, 1894 (hereinafter referred to as “the Act”), is directed against the judgment and award dated 13.08.2002 passed in O.P. No. 15 of 1997 on the file of the Senior Civil Judge, Huzurabad (hereinafter referred to as the “Reference Court”).

2. By the impugned judgment, the Reference Court enhanced the compensation awarded by the Land Acquisition Officer (for short, “LAO”) in respect of the acquired lands, thereby giving rise to the present appeal at the instance of the Special Deputy Collector, L.A. Unit, Huzurabad, Karminagar District.

I. BRIEF FACTS

3. The Land to an extent of Ac.11-33 gts. of Bethigal, Pothireddypet, and Metpalli villages of Keshava Patnam and Veenavanka Mandals were acquired for the purpose of canal excavation.

II. NOTIFICATION AND AWARD:

4. A notification under section 4(1) of the Act, was published on 24.12.1984 and after publication, notices under sections 9(3) and 10 of the Act, along with an award enquiry was conducted.

5. Subsequently, the LAO passed an award dated 30.04.1988, fixing the market value of the acquired lands at Rs. 4,000/- per acre. Not being satisfied with the said compensation, the claimants sought a reference under Section 18 of the Act, which came to be numbered as O.P. No. 15 of

1997 before the Reference Court.

III. ISSUES FRAMED BY THE REFERENCE COURT

6. The Reference Court, upon the pleadings, framed the following issues for determination:

(i) Whether there are reasonable grounds that enhancing the compensation fixed by the Land Acquisition Officer to the acquired lands?

(ii) To what relief?

IV. EVIDENCE ON RECORD:

7. To substantiate their claim for higher compensation, the claimants examined PWs 1 to 4 and got marked Exhibits A1 to A3, which comprised exemplar sale deeds and certified copies of earlier awards pertaining to adjacent lands.

8. On behalf of the respondent-State, none was examined and Exhibit B-1 was marked.

V. FINDINGS OF THE REFERENCE COURT:

9. The Reference Court, upon appreciation of oral and documentary evidence, found that the L.A.O. had relied upon a single sale deed dated 19.01.1983 relating to Sy.No.536/B of Bethigal village, to determine the market value at Rs.4,000/- per acre. However, the said document was never produced before the Court, nor were the parties to it examined, thereby depriving the Court of an opportunity to verify whether the lands covered under it were comparable in nature, fertility, and location to the acquired lands.

10. On the other hand, the claimants adduced cogent oral and documentary evidence. They examined PWs.1 to 4 and produced Exs.A1 to A3. Ex.A1 reflected a sale where the land was valued at Rs.80,000/- per acre, while Ex.A2 reflected at Rs.60,000/- per acre, and Ex.A3, on the other hand, was a judgment rendered in O.P.No.74/1996, wherein the reference Court had already enhanced the compensation for lands situated in Bethigal village from Rs.5,500/- to Rs.35,000/- per acre. The witnesses further established that the acquired lands were fertile, irrigated, and commercially productive, whereas the lands under the sale deed relied on by the L.A.O.

were rocky and barren.

11. The Reference Court further noted that though Ex. A1 was executed in 1985, three years after the acquisition on 01.07.1982, the steep rise in land prices due to industrial and commercial developments in the area justified adopting a rate between Ex. A1 (Rs.80,000/- per acre) and Ex. A-3 (Rs.35,000/- per acre) and fixed the market value at Rs.50,000/- per acre holding that the acquired lands were of superior quality to those in Ex. A3 and on par with those in Ex. A1. The Court further directed payment of statutory benefits under the Act, namely 30% solatium, 12% additional market value from 01.07.1982 to 30.04.1988