HON’BLE SRI JUSTICE V. ESWARAIAH AND HON’BLE SRI JUSTICE NOUSHAD ALI A.S.No.710 of 2000 AND A.S.No.1080 of 2000 COMMON ORDER: (per Hon’ble Sri Justice Noushad Ali) Both the appeals are filed by the claimants, arising out of the common order dated 01.04.1996 passed in O.P.Nos.393 and 392 of 1989 respectively, on the file of the Court of the Subordinate Judge, Sathupalli. The said Original Petitions relate to the references for enhancement of compensation under Section 18 of the Land Acquisition Act, 1894 (for short ‘the Act’). An extent of Ac.0.34 guntas of land in each O.P., situated in Sy.Nos.203/1 and 204/4 of Madhira Village and Mandal, Khammam District, was acquired for extension of agriculture Market Yard, pursuant to the draft notification issued under Section 4(1) of the Act published on 19.09.1985. Possession of the said land was taken on 16.02.1985. The respondent-Land Acquisition Officer passed Ex.B.1- Award No.2/1987 dated 30.11.1987 fixing the market value of the acquired land at Rs.10,000/- per acre based on a sale transaction in respect of an extent of Ac.0.10 guntas of land in Sy.No.204. The appellants/claimants not being satisfied with the compensation awarded, sought for reference under Section 18 of the Act. On such reference, the petitions were registered as O.P.Nos.393 of 1989 (A.S.No.710 of 2000) and 392 of 1989 (A.S.No.1080 of 2000) respectively. Before the reference Court, the claimants filed claim statements claiming compensation at Rs.270/- per sq. yard, contending that the acquired lands are fertile and suitable for rising commercial crops like chillies and tobacco. They were rising the said crops and deriving an income of Rs.30,000/- to Rs.40,000/- per year per acre. The acquired lands were adjacent to Madhira town, which is the Mandal Headquarter with all facilities like railway station, degree-college, high schools, banks, government hospitals etc. In support of their claim, the appellants examined PWs.1 to 6 and marked Exs.A.1 to A.8. PW.1 is the claimant in O.P.No.393 of 1989; PW.2 is the vendor of Ex.A.2 registered sale deed dated 2.06.1982; PW.3 is the husband of the vendor in Ex.A.4 registered sale deed dated 12.06.1986; PW.4 is the Sub-Registrar, Madhira; PW.5 is the Executive Officer of Gram Panchayat and PW.6 is the Advocate Commissioner. The respondent-Land Acquisition Officer did not examine any witnesses, but marked Ex.B.1-Award proceedings dated 30.11.1987; Ex.B.2-reference application in O.P.No.392 of 1989 and Ex.B.3- reference application in O.P.No.397 of 1989 (O.P.No.397 of 1989 is not the subject matter of these appeals). The reference Court on a consideration of the evidence adduced, basing on the orders in O.P.Nos.394, 395, 396 dated 10.04.1990 relating to the same Award proceedings wherein compensation was awarded at Rs.25/- per sq. yard, which was confirmed by this Court in A.S.No.2368 of 1990, awarded compensation @ Rs.25/- per sq. yard. The appellants still not being satisfied filed these appeals seeking further enhancement of compensation. The point for consideration is whether the appellants are entitled for further enhancement of compensation in these appeals? Heard the learned counsel appearing for the appellants and the learned Government Pleader for the respondent. Learned counsel for the appellants would submit that compensation awarded by the Reference Court @ Rs.25/- per sq. yard is not just and proper and the appellants are entitled for compensation @ Rs.60/- per sq. yard. The counsel would rely on the oral evidence as well as the transactions covered by Exs.A-2 and A-3. On the other land, the learned Government Pleader would contend that compensation awarded by the Reference Court @ Rs.25/- per sq. yard is just and adequate and requires no further enhancement. As noted above, the appellants adduced both oral and documentary evidence in support of their case. PW.1 is the claimant in O.P.No.393 of 89 and he deposed on behalf of claimant in O.P.No.392 of 89 also. He deposed that Madhira town is a developed town with all facilities and amenities available and that acquired land is also useful for house sites. The land is situated at a distance of 600 to 700 yards from Vijayawada to Madhira road. The railway station is located at 150 yards and already market yard has come into existence in the land acquired. His evidence goes to show that the land to an extent of 260 sq. yards, which is situated by the side of Vijayawada-Madhira road near the schedule land was sold under Ex.A-2-sale deed, dated 02-06- 1982, for Rs.10,720/-, which works out to Rs.40/- per sq. yard. Similarly, Ex.A-3-sale deed, dated 24-10-1983 is in respect of sale to an extent of 106 sq. yards situated in Sy.Nos.42, 43 and 44 of Madhira, which was sold for a sum of Rs.19,000/-, which works out to Rs.179/- per sq. yard. In order to corroborate the said statement, PW.2, who is the vendor of the land covered under Ex.A-2, was examined. According to PW.2, he sold the land covered by Ex.A-2 at Rs.40/- per sq. yard and the said land is 150 yards away from the land of PW.1 and the said land is useful for construction of houses. PW.3 was examined for showing the escalation of prices after acquisition. He purchased 273 sq. yards @ Rs.150/- per sq. yard on 12-06-1986 under Ex.A-4. An Advocate Commissioner was appointed for noting the physical features of the acquired land, who submitted Ex.C-1 report. As per the said report, two godowns and two plat-forms were found in the Agricultural Market Committee Yard Land and a rice mill is situated to the southern side of Madhira to Vijayawada road and towards the north of the acquired land, a railway track is situated and towards the west, the office of the Agricultural Market Committee is situated and residential houses are also situated towards the west of the said acquired land. Railway Station of Madhira is situated at a distance of one furlong from the acquired land towards its north-west. Madhira bus depot and bus station are situated in a compound at a distance of one furlong from the Railway station. It is evident from the report of the Advocate Commissioner that the acquired land had potentiality of house sites and is located very close to the commercial area in Madhira Town. In the circumstances, we are of the view that Ex.A-2-sale transaction, dated 02-06-1982, is relevant for the purpose of determining the fair market value in respect of the acquired land. We are not inclined to take Ex.A-3 sale transaction, since it covered a small bit of 106 sq. yards, whereas the land covered by Ex.A-2 is for an extent of 267 sq. yards. Since the land covered under Ex.A-2 was sold on 02-06-1982 i.e., three years before 4(1) Notification, dated 19-09- 1985, and it is undisputedly at a distance of 150 yards and close to Vijayawada-Madhira road, we consider the said sale is relevant. The land covered by Ex.A-2 was sold at Rs.40/- per sq. yard, which works out to Rs.1,93,600/- per acre. Since the land covered by Ex.A-2 is a house site, we are of the opinion that 1/3rd is liable to be deducted. On such deduction, the market value works out to Rs.26.67 paisa per sq. yard. Having regard to escalation of prices (10% per year) at 30% for three years, it would work out to Rs.34.67 paisa, which can be rounded off to Rs.35/- per sq. yard. The other documents covered by other exhibits are posterior to the land acquisition and the same need be taken into consideration. We are, therefore, of the opinion that the fair market value can be fixed at Rs.35/- per sq. yard. But, as seen from the grounds of appeals, it is evident that the claimants sought enhancement of compensation @ Rs.31.50 paisa per sq. yard only. Therefore, we restrict the enhancement only to Rs.31.50 paisa. We, therefore, hold that the appellants are entitled for enhancement of compensation @ Rs.31.50 paisa per sq. yard from Rs.25/- per sq. yard awarded by the Reference Court. The appellants are also entitled for all statutory benefits on the enhanced amount. Accordingly, the appeals are allowed. There shall be no order as to costs. ________________ V. ESWARAIAH, J ________________ NOUSHAD ALI, J. Dated: 06-10-2010. Prv