IN THE HIGH COURT OF JUDICATURE OF ANDHRA PRADESH : HYDERABAD TUESDAY, THE TWENTY SEVENTH [27TH] DAY OF APRIL, TWO THOUSAND AND TEN Present: HON’BLE SRI JUSTICE A.GOPAL REDDY & HON’BLE SRI JUSTICE G.V.SEETHAPATHY A.S.No.2518 of 2000 Between: The Mandal Revenue Officer (Land Acquisition Officer) Manthani … Appellant And: Illandula Chantaiah … Respondent THE HON’BLE SRI JUSTICE A.GOPAL REDDY & THE HON’BLE SRI JUSTICE G.V.SEETHAPATHY A.S.No.2518 of 2000 JUDGMENT: [Per AGR, J] This appeal under Section 54 of the Land Acquisition Act by the Mandal Revenue Officer (Land Acquisition Officer), Manthani, questioning the enhancement of the compensation in OP No.9 of 1994 dated 07.03.2000 by the Senior Civil Judge, Peddapalli. 2. The draft notification under Section 4(1) of the Land Acquisition Act (for short ‘the Act’), acquiring an extent of Ac.3.38 guntas situate in Medipalli village of Manthani Mandal, for providing house sites to the weaker sections, was published on 07.04.1992. The Land Acquisition Officer, after following the procedure prescribed under the Act, passed the award on 14.02.1994 fixing the market value at Rs.8,000/- per acre. The claimant, dissatisfied with the fixation of the market value, sought for reference of the matter to the civil Court. On reference being made, it was registered as OP No.9 of 1994. The claimant filed claim statement seeking enhancement of the compensation at Rs.1,50,000/- per acre with all statutory benefits. 3. The burden of proof lies on the claimant, who is seeking enhancement. To discharge the said burden, the claimant examined himself as PW.1 and another person, who purchased Ac.0.9½ guntas of land under Ex.A.1 sale deed dated 07.10.1989 was examined as PW.2. On behalf of the referring Officer, one witness was examined as RW.1 and certified copy of the award was marked as Ex.B.1. 4. The claimant, examined as PW.1, testified that an extent of Ac.3.38 guntas of land in Sy.No.54 of Medipalli village of Manthani Mandal was acquired by the Government for the purpose of providing house sites to weaker sections and the government granted very meagre compensation. The acquired land is more useful for house sites and there was lot of demand for house sites in Medipalli village. There are schools besides bus stop, Government Hospital and Gram Panchayat office in the said village. There is also PWD road near the acquired land, which goes towards Manthani road. He further deposed that one Macherla Komuraiah sold 1150 sq. yards of land to Sunku Ramulu (P.W.2) for Rs.17,300/- under Ex.A-1 dated 07-10-1989, which works out to Rs.72,810/- per acre. 5. To prove the transaction under Ex.A-1, PW.2 was examined. He deposed that he purchased an extent of Ac.0-9½ guntas of land (nearly 1/4th of the acre) situate at Kakarlapalli village for Rs.17,300/-, which works out to Rs.72,810/- per acre under Ex.A-1. He further deposed that he constructed a house in the year 1991 in the said land and his land and the acquired land is about 2 furlongs distance. According to him, Kakarlapalli and Medipalli villages are adjacent to each other. The acquired lands are more suitable for house sites. The lands covered under Ex.A.1 and the acquired lands are similar in potentiality. 6. No contra evidence had been adduced by the Land Acquisition Officer that the sale transaction covered by Ex.A.1-sale deed cannot form the basis for fixation of the market value, owing to its proximity or otherwise. The reference Court, after giving 40% due deduction for lay out losses and development charges, fixed the market value of the acquired land at Rs.40,000/- with all statutory benefits, which is just and reasonable compensation to which the claimant is entitled. 7. The reference Court awarded additional market at 12% per annum from the date of taking possession to the date of award and interest at 9 % per annum from the said date for a period of one year and thereafter at 15% per annum. The same is not in accordance with the statutory provisions or the law declared by the Apex Court. In view of the fact that the award is passed after the Land Acquisition Act coming into force and the notification itself was issued after the amended Act, the claimant is entitled to additional market value at 12% per annum from the date of notification to the date of taking possession or award, whichever is earlier. But in the present case, possession is taken earlier to issuance of notification. The claimant is entitled to additional market value at 12 % per annum from the date of notification to the date of award. Further, the claimant is entitled to interest on the enhanced compensation, including 30% solatium and additional market value from the date of 4 (1) notification for a period of one year at 9% per annum and thereafter at 15% per annum. 8. With the above modification, the appeal stands partly allowed. No order as to costs. ______________ A.GOPAL REDDY ___________________ G.V.SEETHAPATHY, J Date: 27.04.2010 Bss/Lrkm