IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD TUESDAY, THE FIFTH DAY OF OCTOBER TWO THOUSAND AND TEN PRESENT THE HON'BLE MR JUSTICE V.ESWARAIAH & THE HON'BLE MR JUSTICE NOUSHAD ALI A.S. Nos.2909, 2910, 2913, 2940, 2941 & 3002 of 1999 A.S. No.2909 of 1999 Between: The Land Acquisition Officer, (The Special Deputy Collector) I.P.T. & Raiways, Khammam ..... APPELLANT AND Bolla Jayamma .....RESPONDENT A.S. No.2910 of 1999 Between: The Land Acquisition Officer, (The Special Deputy Collector) I.P.T. & Raiways, Khammam ..... APPELLANT AND Maduri Laxmi Narsaiah .....RESPONDENT A.S. No.2913 of 1999 Between: The Land Acquisition Officer, (The Special Deputy Collector) I.P.T. & Raiways, Khammam ..... APPELLANT AND Bansoda Punnabai .....RESPONDENT A.S. No.2940 of 1999 Between: The Land Acquisition Officer, (The Special Deputy Collector) I.P.T. & Raiways, Khammam ..... APPELLANT AND Maduri Chandraiah .....RESPONDENT A.S. No.2941 of 1999 Between: The Land Acquisition Officer, (The Special Deputy Collector) I.P.T. & Raiways, Khammam ..... APPELLANT AND Mastan Saheb .....RESPONDENT A.S. No.3002 of 1999 Between: The Land Acquisition Officer, (The Special Deputy Collector) I.P.T. & Raiways, Khammam ..... APPELLANT AND Gunti Venkaiah .....RESPONDENT The Court made the following: THE HON'BLE SRI JUSTICE V.ESWARAIAH & THE HON'BLE SRI JUSTICE NOUSHAD ALI A.S. Nos.2909, 2910, 2913, 2940, 2941 & 3002 of 1999 COMMON JUDGMENT: (per Hon’ble Sri Justice V.Eswaraiah) All these appeals are filed by the Land Acquisition Officer (Special Deputy Collector) I.P.T. & Railways, Khammam against the common order dated 07.06.1999 passed in L.A.O.P.Nos.80/93, 56/92, 57/92, 58/92, 59/92 and 79/93 respectively. 2. The lands of various extents of the appellants/claimants situated in Sy.Nos.166/2 to 5, 170/1/2, 111/2, 165/2, 162/2 and 110/2 were acquired pursuant to the notification issued under Sec.4(1) of the Land Acquisition Act (hereinafter referred to as “the Act”) dated 29.03.1990 and Award No.1/92-93 was passed on 10.04.1992 fixing the market value by the Land Acquisition Officer @Rs.1200/- per acre for wet land and Rs.1000/- per acre for dry land under Nagarjuna Sagar Project (Acquisition of Land) Act, 1956 (Act 32/56) prevailing as on 01.07.1953. He has arrived at the market value of Rs.15,000/- per acre for dry land and Rs.20,000/- per acre for wet land as on the date of Sec.4(1) notification. The said lands were acquired for the purpose of laying a road from Khammam to Kodumuru village of Khammam District. Admittedly, the lands were acquired for the purpose of laying a road and it has no connection with the project area and the acquired lands are very nearer to Khammam town and surrounded by many residential houses and the same is within the municipal area. Thus, it was the claim of the claimants that fixing the market value by the Land Acquisition Officer by applying the Nagarjuna Sagar Project (Acquisition of Land) Act 1956 is without any basis and the said Act has no application for the lands acquired under the Land Acquisition Act for the purpose of laying of road. 3. The claimants are not even satisfied for the payment of compensation @Rs.15,000/- per acre for dry land and Rs.20,000/- per acre for wet land and on the protest applications filed by the claimants, the matters were referred to the Reference Court under Sec.18 of the Land Acquisition Act for fixation of fair market value. The Reference Court by the impugned common order dated 07.06.1999 enhanced the compensation fixing the market value for the acquired lands @Rs.81,000/- per acre. Aggrieved by the same, the Land Acquisition Officer filed these appeals. 4. The question that arises for consideration in these appeals is whether the market value fixed by the Reference Court is excessive and without any basis. 5. In support of their respective claims, on behalf of the claimants PWs 1 to 5 were examined and Exs.A1 to A13 were marked, and on behalf of the Referring Officer, RW 1 was examined and Ex.B1 Award and Ex.B2 the copy of the Gazette Notification dated 08.05.1989 were marked. 6. PW 1 is the claimant in L.A.O.P.No.58/1992. He stated that an extent of Ac.3.17 gts comprising of Sy.Nos.162, 165 and 111 of Pakabanda revenue village area of Khammam Urban Mandal was acquired for purpose of laying a road from Khammam to Kodumur pursuant to the notification issued under Sec.4(1) of the Act dated 29.03.1990. The Land Acquisition Officer fixed the market value @Rs.1,000/- per acre for dry land and @Rs.1,200/- per acre for wet land under Nagarjuna Sagar Project (Acquisition of Land) Act. It is stated that the acquired lands are agricultural lands and they used to raise paddy and the yield was 25 to 30 bags per acre earlier, and afterwards, they have converted the lands into house sites for the residential purposes and the houses have come up in the surrounding lands. It is stated that his wife sold an extent of 145.75 sq.yards in Sy.No.162 for a consideration of Rs.6,000/- vide Ex.A1 sale deed dated 26.08.1985 which works out to Rs.1,99,245/- per acre. Similarly, one Vanama Venkateswarlu sold an extent of 324 sq.yards in Sy.No.170 vide Ex.A2 sale deed dated 04.02.1987 for a total sale consideration of Rs.14,580/- @Rs.45/- per sq.yard. One Md.Khairunnisa Begum sold an extent of 200 sq.yards in Sy.Nos.1, 12, 13 vide Ex.A3 sale deed dated 18.05.1987 for a sum of Rs.10,000/- @Rs.50/- per sq.yard. One Pallapothu Rangarao sold an extent of Rs.381 sq.yards in Sy.Nos.169, 170, 171 and 172 vide Ex.A4 sale deed dated 16.06.1987 for a sum of Rs.43,500/- @Rs.60/-. One Peddi venkataiah sold an extent of 210 sq.yards in Sy.No.174 vide Ex.A5 sale deed dated 17.07.1987 for a sum of Rs.12,600/- @Rs.60/- per sq.yard. One Palla Jhon Ramulu sold an extent of 110 sq.yards in Sy.No.172 under Ex.A6 sale deed dated 02.09.1987 for a sum of Rs.6,930/- @Rs.63/- per sq.yard. One Aleti Govindachary sold an extent of 66 sq.yards in Sy.No.7 vide Ex.A7 sale deed dated 20.02.1988 for a sum of Rs.4,620/- @Rs.70/- per sq.yard. One Palla Janakiramulu sold an extent of 358 sq.yards in Sy.No.172 vide Ex.A8 sale deed dated 27.01.1988 for a sum of Rs.22,554/- @Rs.63/- per sq.yard. One Vangaveeti Satyanarayana sold an extent of 261.71 sq.yards in Sy.No.175 vide Ex.A9 sale deed dated 29.04.1988 for a sum of Rs.19,628/- @Rs.75/- per sq.yard. One Bhuma Venkanna sold an extent of 170 sq.yards in Sy.No.63 vide Ex.A10 sale deed dated 11.03.1988 for a sum of Rs.11,900/-. One Palla John Ramulu sold an extent of 185 sq.yards in Sy.No.172 vide Ex.A11 sale deed dated 19.09.1989 for a sum of Rs.13,875/- @Rs.75/- per sq.yard. One Gaddam Veerabhadram sold an extent of 201.50 sq.yards in Sy.Nos.9, 10, 11 vide Ex.A12 sale deed dated 31.10.1989 for a sum of Rs.18,135/- @Rs.90/- per sq.yard. It is stated that all the acquired lands are adjoining each other and are similar in nature and useful for house sites. 7. PW 2 is the resident of Khammam town and owner of the land in Sy.No.175 of Pakabanda bazaar within Khammam Municipal limits. He sold an extent of 261.71 sq.yards for a consideration of Rs.19,638/- @Rs.75/- per sq.yard under Ex.A9 sale deed dated 29.04.1988. He stated that the acquired land was located half kilometre away from his land. All the acquired lands are surrounded by house sites and several houses have also come up in the acquired land. 8. PW 3 who is resident of Allipuram village stated that he knew the claimants and he sold his wife’s lands in the capacity of GPA Holder of an extent of 145.75 sq.yards under Ex.A1 sale deed dated 26.08.1985 @Rs.40/- per sq.yard. 9. PW 4 is also resident of Khammam and owner of the land in Sy.No.172 and he sold an extent of 110 sq.yards under Ex.A6 sale deed dated 02.09.1987 @Rs.60/- per sq.yard. It is also stated that the land in Sy.No.172 is 1½ kilometres away from Khammam bus stand, and the acquired land and his land in Sy.No.172 are similar and both are useful for house sites. It is stated that he also sold the land under Ex.A7 @Rs.75/- per sq.yard, and also sold an extent of 358 sq.yards in Sy.No.172 @Rs.63/- per sq.yard. Thus, it is stated that he executed the sale deeds under Exs.A6, A7 and A11. 10. PW 5 is the claimant in L.A.O.P.No.57/92 and the owner of the land in Sy.No.170/1/2 of Pakabanda area. 11. RW 1 is the Deputy Collector-cum-Land Acquisition Officer, Khammam. He stated that he passed Ex.B1 award and fixed the market value as on 01.07.1953 under the Nagarjuna Sagar Project (Acquisition of Land) Act as well as under the Land Acquisition Act, as stated above. It is stated that he had called for the sale particulars for a period of three years prior to 01.07.1953 and also three years prior to notification issued under Sec.4(1) of the Act. There are only two sales prior to 1953, among them one sale was @Rs.600/- per acre and the second sale was @Rs.250/- per acre. Therefore, he fixed the value of the acquired lands @Rs.1,000/- per acre for dry land and Rs.1,200/- per acre for wet land as on 01.07.1953. He also stated that he has received 23 sale particulars with regard to the transactions in the preceding three years prior to Sec.4(1) notification and out of all the sales one sale transaction pertains to house site. The sale in respect of Sy.No.161 to the extent of Ac.2.17 gts. was sold @Rs.20,412/- per acre. On that basis, he fixed the market value as on date of Sec.4(1) notification @Rs.Rs.20,000/- per acre. 12. In the cross examination, RW 1 denied the suggestion that the acquired land is 1½ kilometres away from railway station and bus stand of Khammam. He admitted that all the lands surrounding the acquired lands were sold as house sites prior to Sec.4(1) notification. Nearby the acquired land, there were Babymoon Junior College, poultry forum and brick factories. It is further stated that he could not say when the structures have come up, and stated that the structures have come up after the acquisition. He had no knowledge about the functioning of rice mill near the acquired land prior to Sec.4(1) notification. He stated that he fixed the market value on acreage basis taking into consideration of sale transaction of an extent of Ac.2.17 gts. He denied the suggestion that the sale transaction of Ac.2.17 gts. in Sy.No.161 is far away from the acquired land. But he stated that the said land is two furlongs away from the acquired land. 13. Based on the aforesaid oral and documentary evidence, the Reference Court considered the sale transactions under Exs.A6, A7 and A11 and the value mentioned in Ex.A11 sale transaction was taken into account for fixing the market value @Rs.25/- per sq.yard, and after deduction of 1/3rd amount towards development of the land, fixed the market value @Rs.81,000/- per acre. 14. The sale transactions covered under Exs.A3, A6, A7 to A10 and A12 relate to different survey numbers and therefore, the Reference Court rightly discarded those transactions. In so far as Ex.A11 is concerned, the Reference Court placed heavy reliance on Ex.A11. Ex.A11 relates to Sy.No.172 which is not part of the acquired land. However, based on the oral and documentary evidence, as the land covered under Ex.A11 is abutting and neighbouring land of the acquired land, and both the lands are useful for house sites, the Reference Court placed reliance on Ex.A11. The sale transaction covered under Ex.A4 is in respect of sale of the house of an extent of 160.50 sq.yards in Sy.Nos.169, 170, 171 and 172 of Pakabanda. It is not in dispute that Sy.No.170 is part of the acquired land. The acquired lands are small extents such as Ac.0.03/4 gts, Ac.16½ gts, Ac.0.10 gts, Ac.0.14 gts, Ac.0.15 gts, Ac.0.33 ½ gts, one acre and Ac.1.21 gts. 15. It is pertinent to note that under Ex.A4 sale transaction an extent of 160.50 sq.yards in which a house was situated in the part of Sy.No.170 was sold for a sum of Rs.43,500/-. It was clearly mentioned in Ex.A4 sale deed that the built up area was 381 sq.ft. and the land area was 160.50 sq.yards. Value of the land was also mentioned in the document stating that the land was sold @Rs.60/- per sq.yard, that means for a sum of Rs.9,630/- which works out to Rs.2,90,400/- per acre. Out of the total value of Rs.43,500/- the value of construction is Rs.33,870/- Therefore, the value of the structures of 381 sq.ft was Rs.33,870/-. Even 50% of the said value is taken into account, it comes to Rs.1,45,000/- per acre. Therefore, we are of the opinion that the Reference Court has rightly placed reliance on the sale transaction of the neighbouring lands and fixed the market value @Rs.81,000/- per acre. The said lands are useful for house sites and in part of the acquired lands Ex.A4 house was situated which was sold @Rs.60/- per sq.yard and even half of the said land value is taken, even after deducting 1/3rd market value, it would be much more what was fixed by the Reference Court. 16. In view of the facts and circumstances of the case, we are unable to accept the contentions of the learned Government Pleader for the appellants that the Reference Court has erred in not taking into account of the sale transactions of a larger extent to fix the market value of the acquired lands of small extents. We are of the opinion that as Ex.A4 sale deed land is part and parcel of Sy.No.170, it cannot be said that the market value of the acquired land as fixed by the Reference Court @Rs.81,000/- per acre in respect of acquisition made in 1990 is excessive or without any basis. Therefore, we are not inclined to interfere with the award passed by the Reference Court. However, as the acquired lands were taken possession prior to Sec.4(1) notification, the claimants are not entitled to interest, additional market value and solatium, as awarded by the Reference Court from the date of taking possession, but they are entitled to the said benefits from the date of Sec.4(1) notification alone. 17. Accordingly, all these appeals are allowed in part, to the extent as indicated above. ____________________ V.ESWARAIAH,J ________________ NOUSHAD ALI,J Dated: 05.10.2010 Dsr