THE HON’BLE SRI JUSTICE ABHINAND KUMAR SHAVILI AND THE HON’BLE SRI JUSTICE VAKITI RAMAKRISHNA REDDY LAND ACQUISITION APPEAL SUIT. No. 670 of 2011 JUDGMENT: (Per Hon’ble Sri Justice Vakiti Ramakrishna Reddy This Appeal, filed by the Land Acquisition Officer & Revenue Divisional Officer, Nizamabad under Section 54 of the Land Acquisition Act, 1894 (for short, “the Act”), is directed against the judgment and award dated 22.06.2010 passed in O.P. No. 1147 of 2002 on the file of I Additional District Judge, at Nizamabad (hereinafter called as ‘Reference Court), whereby the Reference Court enhanced the compensation awarded by the Land Acquisition Officer (for short, “LAO”) in respect of the acquired lands.

I. BRIEF FACTS

2. The lands situated in Survey Nos. 530 to an extent of Ac. 1-35 gts, Survey Nos. 530/1 extent of Ac. 0-37 ½ gts and Survey Nos. 530/1 extent of Ac. 0-02 ½ gts of Sirikonda Village and Mandal, Nizamabad District were acquired for the public purpose of providing house sites to the weaker sections of the society. A notification under Section 4(1) of the Act was published on 23.10.1999.

3. The LAO passed an award dated 16.04.2001 fixing the market value at Rs. 6000/- per acre. Not being satisfied with the said compensation, the claimants sought a reference under Section 18 of the Act before the Reference Court.

II. ISSUES FRAMED BY THE REFERENCE COURT:

4. The following issues were framed for determination by the Reference Court:

i. Whether market value fixed by the LAO is just and fair.

ii. Whether the claimants are entitled for enhancement of the market value of the acquired lands.

iii. To what result?

III. EVIDENCE ON RECORD:

5. Before the Reference Court, the claimants examined PW.1 to PW.3 and marked Exs.A1 to A4, which included exemplar sale deeds and certified copies of awards relating to adjacent lands. On behalf of the respondent-State, RW.1 was examined and Ex. B1 was marked.

IV. FINDINGS OF THE REFERENCE COURT:

6. The Reference Court, on a consideration of the evidence adduced by the claimants, observed that it stood established that the acquired lands were potential and suitable for house sites, which fact was also admitted by RW–1 in his cross-examination. The very purpose of acquisition itself indicates that the lands were intended for conversion into house plots. The LAO, however, ignored this potentiality and relied only upon the sales statistics of larger extents. Exs.A1 and A2 disclose that small plots were sold at Rs.75/- and Rs.80/- per sq. yard, duly supported by the testimony of PWs 2 and 3. The sale exemplers of smaller extents cannot be discarded inasmuch as they constitute a relevant factor for arriving at a just market value.

7. The Reference Court further observed that it is also evident from Ex. B1 that the land in Sy.No.149 was sold at Rs.54,875/- per acre in 1997, which has relevance for determining the value of the present acquired lands of 1998. Having regard to the potentiality of the acquired lands for house sites, the sale transactions under Exs.A1 and A2 coupled with the sale of agricultural land in Sy.No.149 provide a sound basis for determination. Accordingly, the Reference Court deemed it appropriate to fix the market value at Rs.20/- per sq. yard after deducting 1/3rd towards developmental charges at Rs.10/- per sq. yard. The claimants were also held entitled to statutory benefits including 30% solatium, additional market value and interest as envisaged under the provisions of the Land Acquisition Act.

8. The Reference Court, upon appreciation of the said evidence, enhanced the market value, in respect of the acquired lands.

9. Being aggrieved by the order dated. 22.06.2010 passed by the Reference Court, the LAO has preferred the present Appeal.

V. SUBMISSIONS OF THE PARTIES:

a) Submissions on behalf of the Appellant:

10. The Learned Government Pleader for Appeals appearing for the appellant contends that the Reference Court has erred in enhancing the compensation by relying upon Exs.A1 and A2, w