THE HON'BLE SRI JUSTICE A.GOPAL REDDY and THE HON'BLE SRI JUSTICE G.V.SEETHAPATHY A.S.No.2475 of 1999 JUDGMENT (Per Hon’ble Sri Justice A. Gopal Reddy): This appeal under Section 54 of the Land Acquisition Act, 1894 (for short ‘the Act’) has been preferred by the Land Acquisition Officer and Revenue Divisional Officer, Kakinada questioning the enhancement of compensation made by the Subordinate Judge, Kakinada in O.P.No.319 of 1987 dated 29.06.1996. An extent of Acs.10.44 cents of land owned by the claimant and five others situated in various survey numbers of Turangi Village abutting to J.Ramaraopeta, Kakinada Municipality was acquired for providing house sites to weaker sections. A draft notification under Section 4(1) of the Act was published on 08.01.1987 and possession of the land was taken on 29.01.1987. The Land Acquisition Officer, after completing the due formalities, and after taking into consideration the sale statistics of three years preceding to the notification, arrived at the market value of the acquired land at Rs.30/- per square yard i.e., Rs.1,39,200/- per acre, and out of the said amount he deducted 1/3rd towards providing roads, park, electricity etc., and further deducted Rs.43,800/- towards estimated cost for levelling the site to make it fit for construction of houses, and conversion charges and layout charges etc., and accordingly passed Award No.43 of 1986 on 29.03.1987 fixing the market value of the acquired land at Rs.49,000/- per acre and Rs.30/- per tree for palmyrah trees. Being not satisfied with the compensation awarded, the claimant sought for reference under Section 18 of the Act for due determination of the compensation payable for the land acquired. On such reference being made, the claimant appeared before the reference court and filed claim statement claiming compensation @ Rs.50/- per square yard for the land acquired and Rs.100/- per tree for palmyrah trees. To prove the market value, on behalf of the claimant, apart from examining himself as P.W.1, he also examined one more witness as P.W.2 and got marked the xerox copy of sale deed dated 21.01.1987 as Ex.X.1. On behalf of the Referring Officer, no oral or documentary evidence was adduced. P.W.2 deposed that he purchased 146 square yards of land from one Palivela Mariniyya at the rate of Rs.50/- per square yard under Ex.X.1-sale deed dated 21.01.1987, which was executed 13 days after issuance of 4(1) notification in the instant case; that the land covered by Ex.X.1 is situated in Gogudanayyapeta Village, whereas the acquired land is situated in Turangi Village; and that the land covered by Ex.X.1 is a house plot situated in a layout, wherein roads are laid, and electricity and other amenities were also provided. The reference Court discarded Ex.X.1 since the sale transaction covered by Ex.X.1 is not in respect of the land similarly situated to that of the land under present acquisition, and held that the deduction of 1/3rd out of the market value of the acquired land to arrive at the net market value of the land is sufficient and there is no basis for making further deduction of Rs.43,800/- per acre, and accordingly fixed the market value of the acquired land at Rs.92,800/- per acre. The learned Government Pleader for Land Acquisition fairly conceded that the Land Acquisition Officer already deducted 1/3rd from Rs.30/- per square yard and arrived at the market value @ Rs.20/- per square yard, which works out to Rs.96,800/- per acre, whereas the lower Court fixed the market value @ Rs.92,800/- per acre, i.e., Rs.4,000/- less after deducting 1/3rd from Rs.30/- per square yard. In that view of the matter, and since the Land Acquisition Officer has already deducted 1/3rd from Rs.30/- per square yard, further deduction of 1/3rd towards levelling and conversion charges etc., is not at all warranted, as the acquired land is situated in the midst of the developed area, which is fit for house sites, we do not see any merit in the appeal preferred by the Land Acquisition Officer and the same is accordingly dismissed. There shall be no order as to costs. ________________________ JUSTICE A.GOPAL REDDY ______________________ JUSTICE G.V.SEETHAPATHY Date: 13.04.2010 va