THE HON'BLE SRI JUSTICE N.V. RAMANA & THE HON'BLE SRI JUSTICE K.S. APPA RAO Appeal Suit No.2108 of 2002 Date: 21-6-2011 Between The Land Acquisition Officer (R.D.O.), Bodhan. … Appellant and 1. Moglaji and others. … Respondents HON’BLE SRI JUSTICE N.V.RAMANA AND HON’BLE SRI JUSTICE K.S.APPA RAO Appeal Suit No.2108 of 2002 Judgment: (per Hon’ble Sri Justice N.V.Ramana) The Land Acquisition Officer-Revenue Divisional Officer, Bodhan, filed this appeal under Section 54 of the Land Acquisition Act, 1894 (for short ‘the Act’) challenging the order and decree, dated 22.04.2000 passed by the learned Senior Civil Judge, Bodhan, Nizamabad District in O.P.No.2 of 1997. The Land Acquisition Officer acquired Ac.14.04 guntas of dry land comprised in various survey numbers situated at Tadgoor (big) village in Madnoor Mandal, belonging to the respondents-claimants for the purpose of formation of road from Jukkal to Madnoor in the year 1996, by issuing a draft notification under Section 4(1) of the Act dated 16.5.1996 and publishing the same in the Gazette on 03.06.1996. The Land Acquisition Officer, after conducting due enquiry, fixed the market value of the acquired land at the rate of Rs.15,000/- per acre and passed an award accordingly. Being not satisfied with the same, the respondents-claimants sought for reference under Section 18 of the Act for determination of proper market value of the acquired land. The same was taken on file as O.P.No.2 of 1997. To substantiate the case, on behalf of the claimants, P.Ws. 1 to 3 were examined and Exs.A1 to A16 were marked. The Land Acquisition Officer was examined as R.W.1 and Exs.B1 and B2 marked on his behalf. The trial Court after considering the sale transaction that took place just three months prior to the 4(1) notification in respect of the land situated in the same village under Ex.A-15-registered sale deed for consideration of Rs.40,000/- per acre, and taking into account the fact that the acquired land is more potential for raising rain fed crops, enhanced the compensation from Rs.15,000/- to Rs.30,000/- per acre. The trial Court also held that the claimants are entitled for additional market value calculated at the rate of 12% p.a. on the enhanced market value for the period commencing from the date of publication dated 31.5.1996 to the date of the award i.e., 20.9.1996 and that the claimants are also entitled for solatium at 30% on the enhanced compensation and further entitled for interest at the rate of 9% p.a., on the enhanced compensation from the date of possession i.e., 30.6.1987 for a period of one year i.e., till 30.6.1988 and thereafter at 15% p.a., till the date of realisation. Challenging the same, the Government filed the present appeal. The learned Government Pleader for Appeals contended that the transaction under Ex.A15 was brought into existence with an intention to boost the compensation and further the said transaction was in respect of a very small extent and in any event, Ex.A-15, sale transaction cannot be treated as a comparable sale and therefore, the impugned order may be set aside. On the other hand, the learned counsel appearing for the respondents/claimants opposed the said contentions on the ground that Ex.A15 is a genuine transaction and the land covered under the said exhibit was purchased for the agricultural purpose at the rate of Rs.40,000/- and that the trial Court has not committed any error in fixing the market value of the acquired land and there are no grounds to interfere with the same. The land acquired in the present case under Section 4(1) notification dated 16.5.1996 is situated at Tadgoor (big) village in Madnoor Mandal. The land covered by Ex.A15 is nearer to the acquired land and the sale transaction thereunder relates to agricultural land and it was sold at the rate of Rs.40,000/- per acre. Except stating that the transaction under Ex.A15 was brought into existence for the purpose of the increasing the compensation, no material was produced by R.W.1 to discredit the sale transaction under Ex.A15. The said transaction had taken place between the third parties and nearly three months prior to the issuance of notification under Section 4(1) of the Act. When the said transaction is found to be a bona fide transaction, it can be taken as comparable sale for the purpose of determining the market value as on the date of notification. Though the value of the land in question was Rs.40,000/- taking into consideration the extent of land and the purpose of the acquisition, the trial Court after discussing elaborately enhanced the compensation to Rs.30,000/- per acre. In view of the documentary evidence available on record as to the sale transaction that took place in respect of the lands situated nearer to the acquired lands, we feel that the there is no infirmity in fixation of the compensation by the Court below for the acquired lands. Insofar as the interest is concerned, the trial Court held that the claimants are entitled for interest at the rate of 9% p.a., on the enhanced compensation from the date of possession i.e., 30.6.1987 for a period of one year i.e., till 30.6.1988 and thereafter at 15% p.a., till the date of realization. The Apex Court in R.L. JAIN (D) By LRs v. DDA AND BROTHERS[1] held that claimant is not entitled to any interest for the period from the date of taking possession to the date of issuance of notification under Section 4(1) of the Act. In the instant case, the possession was taken before issuance of 4(1) notification. In view of the judgment of the Apex Court cited supra, we are of the opinion that the claimants are not entitled to any interest for the period from the date of taking possession till the date of notification under Section 4(1) of the Act. With the above modification, the appeal is partly allowed. There shall be no order as to costs. _______________ N.V.RAMANA, J _______________ K.S. APPA RAO, J Dated: 21.06.2011 Nn THE HON'BLE SRI JUSTICE N.V. RAMANA & THE HON'BLE SRI JUSTICE K.S. APPA RAO A.S. No.2108 OF 2002 (Judgment delivered by the Hon’ble Sri Justice N.V. Ramana) 21.6.2011 [1] (2004) 4 SCC 79