HON'BLE SRI JUSTICE ABHINAND KUMAR SHAVILI AND HON’BLE SMT. JUSTICE TIRUMALA DEVI EADA APPEAL SUIT No.3980 of 2003

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 Revenue Divisional Officer, Adilabad, aggrieved by the order and decree dated 17.07.2003 passed in O.P.No.87 of 1999 by the learned Senior Civil Judge at Adilabad (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 the land to an extent of Ac.01-29 guntas situated at Ratnapur Village of Talamadugu Mandal was acquired. The draft notification under Section 4(1) of the Act was approved on 20.08.1997. After conducting due enquiry, since there was no sales statistics available as the property is situated in scheduled area, the Land Acquisition Officer has fixed the market value based on the yield of the land by following capitalization method. He has taken the value of cotton for three years from the date of approval of notification i.e. for the year 1994-

95, 1995-96 and 1996-97 @ Rs.2008/-, 1720/-, 1671/- respectively per quintal of cotton. He has also considered the yield of red gram and the average rate for the three years was adopted as Rs.1800/- per quintal in respect of cotton yield and Rs.1283/- per quintal for the red gram. Thus, he arrived at a market value of Rs.4242/- per acre. According to him, the value of two quintals of cotton is worth Rs.3,600/- and yield of red gram was taken as Rs.642/- and thus, total income per year is calculated as Rs.4242/-. After deducting half of the value towards investment, Rs.2121/- was held to be the net income, by taking into consideration the multiplier ‘3’, the value was arrived at Rs.6363/- and LAO has awarded Rs.6,000/- per acre apart from statutory benefits. Aggrieved by the said award, the claimants have made an application and the same was referred under Section 18 of the Act to the Court of Senior Civil Judge, Adilabad.

4. The case of the claimants is that they used to earn net income of Rs.5000/- per acre after deducting all the expenses and thus, they sought a compensation of Rs.30,000/- per acre before the reference Court.

5. Based on the above pleadings, the Reference Court has framed the following points for consideration:

“1. Whether the claimants are entitled for enhancement of compensation for their acquired lands if so to what extent?

2. Whether the claimants are entitled for statutory benefits as prayed for?

3. To what relief?”

6. At the time of trial, the claimants got examined PW1 and got marked Exs.A1 to A3. On behalf of the LAO, RW1 was examined and Ex.B1 was marked. Based on the evidence on record, the reference Court has enhanced the compensation to Rs.10,000/- per acre, apart from statutory benefits and that there shall be interest on the aggregate compensation amount i.e. market value, 12% additional Market value and 30% solatium, from the date of possession i.e. 31.05.1995 upto the date of payment at the rate of 9% per annum for first one year and thereafter at the rate of 15% per annum. Aggrieved by the said order, the present appeal is preferred by the LAO.

7. Heard the submissions of learned Government Pleader for the appellant. The learned Government Pleader has submitted that the reference Court has granted interest on interest, it has awarded

12% additional market value from the date of possession i.e. from 31.05.1995 till the date of award i.e. 03.07.1998 and further has held that there shall be interest on the aggregate compensation including 12% additional market value.

8. Based on the above submissions, this Court frames the following points for consideration:

1. Whether the order and decree passed by the reference Court is sustainable in law and under the facts?

2. To what relief? 9. POINT NO.1:

a) The grievance of the appellant is t