THE HON’BLE SRI JUSTICE N.V. RAMANA AND THE HON’BLE SRI JUSTICE K.S. APPA RAO A.S. No. 934 of 1998 Oral Judgment: Questioning the judgment and decree dated 31.12.1997, passed by the Subordinate Judge, Nellore, in L.A.O.P. No. 86 of 1987, enhancing the compensation for the acquired land to Rs.700/- per ankanam as against their claim of Rs.2,000/- and Rs.3,000/- per ankanam, the appellants-claimants filed this appeal. The land of the appellants-claimants was acquired by the Government by issuing notification under Section 4(1) of the Land Acquisition Act, 1894 (hereinafter referred to as ‘the Act’) on 26.03.1980 for the purpose formation of the road on the eastern side of Railway Line, Nellore under the Town Development Scheme. The Land Acquisition Officer after following the procedure contemplated under the Act, passed award dated 21.06.1986, fixing the market value of the lands at the rate of Rs.350/- and Rs.400/- per ankanam. The appellants-claimants received the same under protest and sought reference of the matter to the civil Court. On reference, the Court below, enhanced the compensation to Rs.700/- per ankanam as against the claim of the appellants at Rs.2,000/- and Rs.3,000/- per ankanam. Contending that the compensation fixed by the Court below is meagre, filed the present appeal seeking enhancement. The learned counsel for the appellants-claimants submitted that the Court below having found that Exs. A2 and A3 are genuine, committed an error in not taking them into consideration for the purpose of fixing the market value as reflected therein, and instead fixing the market value of the acquired land at Rs.700/- per ankanam relying on A4-certified copy of the order in O.P. No. 10 of 1979, dated 12.02.1982, wherein the value of the land was fixed at Rs.700/- per ankanam. He submitted that land covered under Ex. A4 was acquired on 29.12.1977 i.e. three years prior to the present acquisition on 26.03.1980, and as such, the Court below ought to have enhanced the market value of the land considering its potentiality and appreciation of land prices during the three years. Hence, he prayed that the compensation fixed by the Court below for the acquired land at Rs.700/- needs enhancement. On the other hand, the learned Government Pleader for Appeals submitted that documents Exs. A2 and A3 cannot be relied upon because they relate to post-acquisition sales, and prayed that the appeal be dismissed. Heard the learned counsel for the appellants-claimants and the learned Government Pleader for Appeals for the respondent- Government. The respondent does not dispute the fact that the acquired land is situated in the midst of Nellore Town. They also admit that the acquired land is surrounded by buildings and structures, schools, residential schools and colleges and business complexes, theatre, bus stand and railway station, and has much commercial value and potentiality. The land, admittedly, was acquired by the Government for the purpose of laying a road. The appellants-claimants did not file any sale deeds pertaining to the period prior to the acquisition notification, and they filed Exs. A2 and A3, which relate to the post-acquisition notification. Admittedly, the Court below, in respect of the land situated in the very same Town, which was acquired on 29.12.1997, under Ex.A4-copy of the judgment in O.P. No. 10 of 1979, dated 12.02.1982, has fixed the market value of the land at Rs.700/- per ankanam. There is no doubt Exs. A2 and A3, being post-sale documents, cannot be taken into consideration for the purpose of fixing the market value of the land, but we cannot ignore the fact that the Court below, for the purpose of fixing the market value of the land at Rs.700/- per ankanam, relied on Ex. A4-certified copy of judgment in O.P. No. 10 of 1979, dated 12.02.1982, whereunder in respect of similar land acquired in the same town, the very same Court had fixed the market value at Rs.700/- per ankanam. Since there is a time gap of three years from the date of the land acquired and covered by Ex. A4 and the present acquisition, and considering the potentiality of the land, we are of the considered opinion that the market value of the land should be fixed at least at Rs.1,000/- by giving escalation of Rs.100/- per ankanam per year. Accordingly, by giving escalation of Rs.100/- per ankanam per year, which comes to Rs.300/- per ankanam for three years, we enhance the market value of the acquired land from Rs.700/- per ankanam as fixed by the Court below, to Rs.1,000/- per ankanam. Accordingly, we allow the appeal partly enhancing the market value of the land from Rs.700/- per ankanam to Rs.1,000/- per ankanam. The appellants-claimants are entitled to all other statutory benefits. No costs. ________________ N.V. RAMANA, J. _________________ K. S.APPA RAO, J. Dated: 15th June, 2011 KSR