HON’BLE SRI JUSTICE V.ESWARAIAH AND HON’BLE SRI JUSTICE NOUSHAD ALI A.S.NO.2529 OF 2000 Dt.15.9.2010 Between: Smt.Annapurna Prasad and others ..Appellants And The Land Acquisition Officer-cum- Revenue Divisional Officer, Gudivada, Krishna District. ..Respondent HON’BLE SRI JUSTICE V.ESWARAIAH AND HON’BLE SRI JUSTICE NOUSHAD ALI A.S.NO.2529 OF 2000 JUDGMENT: (Per Sri Justice V.Eswaraiah) This appeal is directed against the decree and judgment in L.A.O.P.No.165 of 1994 on the file of the Senior Civil Judge, Machilipatnam, dated 7.3.2000. Appellants herein are the claimants. The lands of the claimants to an extent of Ac.9.41 cents in R.S.Nos.224/6, 225/3, 226/1-A, 226/2 and 227/1-A1 situate at Varahapatnam Village, Kaikaluru Mandal, Krishna District, have been acquired for the purpose of house sites to Scheduled Castes pursuant to the draft notification issued under Section 4(1) of the Land Acquisition Act (for short, the Act) dated 15.1.1993 and the award was passed by the Land Acquisition Officer on 16.12.1993 fixing the market value for the acquired land at the rate of Rs.29.250/- per acre. Not being satisfied with the market value so fixed, the claimants made request to refer the matter under Section 18 of the Act. In support of the claim of the claimants, the G.P.A holder of the claimants was examined as P.W.1 and P.W.2, attesting witness of Ex.A-6 sale deed and P.W.3, native of the said village was examined for the purpose of the income derived from the said agricultural lands. R.W.1, Senior Assistant of R.D.O’s office was examined on behalf of the Referring Officer. R.W.2 is the Revenue Divisional Officer/Land Acquisition Officer, who passed the award. On behalf of the claimants Exs.A-1 to A-6 were marked and on behalf of the Referring Officer Ex.B-1 award, Ex.B-2 registration extract and Ex.B-3 combined sketch were marked. Considering the oral and documentary evidence adduced by both the parties, the Reference Court by the impugned order dated 7.3.2000 in L.A.O.P.No.165 of 1994 on the file of the Senior Civil Judge, Machilipatnam, enhanced the compensation from Rs.29,250/- per acre to Rs.35,000/- pre acre. Not being satisfied with the said order of the Reference Court, the claimants filed this appeal under Section 54 of the Act claiming that for the very self-same lands purchased by the claimants under Exs.A-1 to A-5 sale deeds dated 20.3.1984 at the rate of Rs.35,000/- per acre nine years prior to the acquisition and the market value of the said lands have been increased by leaps and bounds and the part of the land purchased by them under Ex.A-6 sale deed dated 5.2.1987 at the rate of Rs.70,000/- per acre and therefore the claimants are entitled to the market value of the lands acquired based on Ex.A-6 and the escalation for the six subsequent years. Heard arguments of both the learned counsel and perused the records. It is not in dispute that the very self-same acquired lands purchased by the claimants under Exs.A-1 to A-5 on 20.3.1984 and out of which an extent of Ac.0.65 cents in S.No.227/A was sold by the claimant No.5 to claimant No.6 for industrial purpose for a sum of Rs.45,500/- which works out to Rs.70,000/- per acre. The notification under Section 4(1) of the Act was dated 15.1.1993 i.e., about six years after Ex.A-6 sale deed. The Reference Court also considered Exs.A-1 to A- 5 which are evidently purchased at the rate of Rs.35,000/- per acre and the very self-same lands were acquired for the purpose of house sites and part of the said lands was also sold under Ex.A-6, dated 5.2.1987, for industrial purpose. The claim of the claimants was at the rate of Rs.1,00,000/- per acre. The Reference Court also observed that there is a gap of nine years between the purchase of the said land under Exs.A-1 to A-5 and the date of notification and the price of the land will go high and Exs.A-1 to A-6 are validly proved documents and there is no dispute about the genuineness or validity of the said documents. However, taking into consideration Exs.A-1 to A-5 and also Ex.B-1, the Reference Court fixed the compensation at the rate of Rs.35,000/- per acre without assigning any reasons as to the entitlement of the claimants with regard to the escalation. Admittedly, when the claimants have purchased the very self-same land at Rs.35,000/- per acre nine years prior to the acquisition, the claimants are entitled to 10% escalation every year and for nine years it is 90% escalation which comes to Rs.66,500/-. Admittedly, part of the land was sold at the rate of Rs.70,000/- per acre six years prior to 4(1) notification. Therefore, we are of the opinion that the claimants are entitled at least at the rate of Rs.70,000/- per acre having regard to the fact that the said lands are in fact acquired for house sites. It is not the case of the Land Acquisition Officer that Ex.A-6 does not reflect the true market value. Therefore, we do not see any justification to discard Ex.A-6 sale deed dated 5.2.1987. Therefore, we are of the opinion that it is just and proper to fix market value at the rate of Rs.70,000/- per acre. The appeal is accordingly allowed enhancing the compensation from Rs.35,000/- to Rs.70,000/- per acre. The claimants are also entitled to all other statutory benefits. There shall be no order as to costs. _________________ V.ESWARAIAH, J. _________________ NOUSHAD ALI, J. 15.9.2010 kpr