HON'BLE SRI JUSTICE ABHINAND KUMAR SHAVILI AND HON’BLE SMT. JUSTICE TIRUMALA DEVI EADA APPEAL SUIT NO.762 OF 1998 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 appellants – claimants, aggrieved by the order and decree dated 04.10.1994 passed in O.P.No.48 of 1992 by the learned Sub-ordinate Judge at Nagarkurnool (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.04-35 cents situated in Sy.No.559 of Gangaram village belonging to the claimants was proposed to be acquired to provide house sites to the people belonging to Backward Classes and to remove congestion in the said village. In pursuance of the said proceedings, the notification under Section 4(1) and 6 of the Act have been published in the Gazette on 20.02.1992 and 29.02.1992 respectively. After conducting due enquiry, the Land Acquisition Officer (LAO) has granted an amount of Rs.3,200/- per acre. Aggrieved by the said award, the claimants have made an application under Section 18 of the Act, which was referred to the learned Sub-Ordinate Judge at Nagarkurnool.

4. The case of the claimants is that their land fetches high value as it is abutting the road and it is a well developed area with transport facilities, schools, post office etc., and it is connected to the road leading from Wanaparthy to Hyderabad and that it has high potential for development in future and is suitable for house sites and that they used to fetch an income of not less than Rs.8,000/- per acre per annum after deducting agricultural expenses and that if they sold outside, they would get Rs.80,000/-

per acre.

5. The LAO has filed his reply statement denying the averments of the claimants and has stated that he has relied upon the sales statistics available in the village and that even though the land in question is abutting the village and is suitable for construction of houses, the village is in developing stage and thus, the same will not get a rate of Rs.30/- per square yard and that the award fixed by him may be confirmed.

6. In view of the above pleadings, the reference Court has framed the following point for determination:

“Whether the claimants are entitled to have any enhancement in the compensation and if it is so to what extent?”

7. At the time of trial, the claimants got examined PWs 1 to 5 and got marked Exs.A1 to A3. On behalf of the respondent, RW1 was examined and Ex.B1 was marked. Based on the evidence on record, the reference Court has enhanced the compensation to Rs.8,000/- per acre, apart from awarding statutory benefits. Aggrieved by the same, the claimants have preferred the present appeal.

8. Heard the submissions Sri M.Ramalingeswara Reddy, learned counsel for the appellants and learned Government Pleader for the respondent.

9. The learned appellants counsel has submitted that the land of the claimants is in a well developed area and is suitable for house sites and has all the amenities, thus, their lands fetch more value than that awarded by the LAO and the reference Court. He further submitted that the reference Court has enhanced only to an extent of Rs.8,000/- per acre, while their lands would fetch around Rs.80,000/- per acre as they are suitable to be sold on yardage basis. He therefore, prayed to enhance the compensation further.

10. The learned Government Pleader has argued that the orders passed by the reference Court do not need any interference and that in fact the LAO has fixed the compensation based on a sound reasoning and the reference Court has enhanced it to Rs.8,000/- per acre which needs no further enhancement, he therefore, prayed to dismiss the appeal.

11. Based on the above rival contentions, this Court frames the following points for determination:

1. Whether the clai