THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE SANJAY KUMAR L.A.A.S.NO.426 OF 2005 DATED 20TH DECEMBER, 2010 BETWEEN The Special Deputy Collector, LA Unit, Warangal. .… Appellant/ Respondent And Enapothula Sambaiah Died per L.Rs. And Others … Respondents THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE SANJAY KUMAR L.A.A.S.NO.426 OF 2005 JUDGMENT (Per SK,J) This appeal arises out of the Order and Decree dated 05.02.1999 passed by the I Additional Senior Civil Judge, Warangal, enhancing the compensation from Rs.13,500/- per acre to Rs.37,500/- per acre upon a reference under Section 18 of the Land Acquisition Act, 1894 (for brevity, ‘the Act of 1894’) in O.P.No.86 of 1993. The lands of the respondents at Sangam Village, Warangal District, admeasuring Ac.1.10 guntas were acquired for the excavation of the tail channel at K.M. 259.875 of K.C. Main Canal. The draft notification under Section 4(1) of the Act of 1894 was published on 09.08.1989. The Land Acquisition Officer, after due enquiry, fixed the market value of the lands in question at Rs.13,500/- per acre. Aggrieved thereby, the respondents sought reference under Section 18 of the Act of 1894. The reference Court placed reliance on Ex.A.1, the order passed in O.P.No.178 of 1986 on the file of the Principal Sub Judge, Warangal, pertaining to the payment of compensation for the land belonging to claimant No.1 which was acquired in 1984. The land acquired in 1984 formed part and parcel of the lands acquired under the present notification. The present notification pertained to Survey Nos.750, 752, 774 and 780 of Sangam Village while the land acquired in the year 1984 was situated in Survey No.752. The reference Court had fixed the market value of the land at Rs.25,000/- per acre in that case which found confirmation before the High Court under the Judgment marked as Ex.A.2. Taking the same into account, the reference Court was of the opinion that as there was a gap of five years between the notifications, enhancement at 10% per annum on the value fixed earlier would be justified and accordingly added a sum of Rs.12,500/- towards escalation charges, thereby valuing the lands at Rs.37,500/- per acre. As held by the Supreme Court in PAL SINGH v. UNION TERRITORY OF CHANDIGARH[1], Judgments pertaining to the market value of the lands in the vicinity are admissible in evidence for inferring the correct market value. Therefore, the approach adopted by the reference Court cannot be found fault with. Further, the escalation by 10% adopted by the Court below cannot be said to be unreasonable or high. We therefore find no reason to take a different view in the matter. The Appeal is accordingly dismissed. There shall be no order as to costs. _______________________ GODA RAGHURAM, J. ____________________ SANJAY KUMAR, J. 20TH DECEMBER, 2010. PGS [1] 1993 (1) ALT 6 (SC)