THE HON’BLE SRI JUSTICE K. LAKSHMAN AND THE HON’BLE SRI JUSTICE VAKITI RAMAKRISHNA REDDY LAND ACQUISITION APPEAL SUIT No. 300 of 2013 Date: 10-02-2026 Between The Special Deputy Collector (L.A.), IPT & Railways, Khammam District. … Appellant And Bheemireddy Rama Chandra Reddy … Respondents JUDGMENT: (Per Hon’ble Sri Justice Vakiti Ramakrishna Reddy This Appeal, filed by the Special Deputy Collector, (L.A), IPT and Railways, Khammam District under Section 54 of the Land Acquisition Act, 1894 (for short, “the Act”), is directed against the Order and Decree dated 15.07.2010 passed in O.P. No. 47 of 2007 on the file of Senior Civil Judge, at Sathupalli (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 land.

I. BRIEF FACTS

2. The lands situated in Survey No. 1622 of an extent of Ac. 1.15 gts, Survey No. 1750 of an extent of Ac. 0.01 gts situated in Vemsoor Village and Mandal, Khammam District, were acquired for the purpose of formation of ‘Bethupalli Flood Flow Channel’ in the village limits of Vemsoor. A notification under Section

4(1) of the Act was published on 06.11.1996.

3. The LAO passed an award dated 06.01.1998 fixing the market value of the acquired lands at Rs. 14,000/- 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. POINT FOR CONSIDERATION FRAMED BY THE REFERENCE COURT:

4. The following Point for consideration was framed for determination by the Reference Court:

Whether the market value fixed by the Land Acquisition Officer is inadequate and if so, what would be the market value?

III. EVIDENCE ON RECORD:

5. Before the Reference Court, the claimants examined PWs 1 to 6 and marked Exs.A-1 & A-2, which included exemplar sale deeds relating to the adjacent lands. On behalf of the respondent-

State, RW-1 was examined and Ex. B-1 was marked.

IV. FINDINGS OF THE REFERENCE COURT:

6. Upon appreciation of the oral and documentary evidence on record, the Reference Court came to a conclusion that the market value fixed by the LAO at the rate of Rs.14,000/- per acre is inadequate and does not reflect the true potential of the acquired land. The evidence of PWs 1 to 6, particularly, PW-3 (Mandal Surveyor) and PW-6 (Panchayat Secretary), clearly establishes that the acquired land in Sy.Nos.1622 and 1750 of Vemsoor village is situated in close proximity to the four-way junction of Marlapadu, Government offices such as MRO and MDO, Primary Health Centre and residential colonies. The sale transactions marked as Exs.A-1 and A-2, though relating to smaller extents and executed on square-yard basis, pertain to adjacent lands and were prior to the date of notification.

7. The Reference Court further held that in view of the principles laid down by the Honourable Supreme Court, the market value of even agricultural land can be determined on square-yard basis when the land has urban or semi-urban potential. Taking into consideration the location of the land, the Reference Court fixed the market value at Rs.30/- per square yard, equivalent to Rs.3,630/- per gunta, as on the date of notification. 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. Being aggrieved by the order dated. 15.07.2010 passed by the Reference Court, the LAO has preferred the present Appeal.

V. SUBMISSIONS OF THE PARTIES:

a) Submissions on behalf of the Appellant:

9. The Learned Government Pleader for Appeals appearing for the appellant contends that the Reference Court enhanced the compensation in O.P. No.47 of 2007 without proper reasons or supporting material and wrongly interfered with the award passed by the LAO.

10. It is further submitted that the Reference Court did not consider the case put forward by the LAO and faile