THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE SANJAY KUMAR L.A.A.S.NO.1436 OF 2005 DATED 19TH JANUARY, 2011 BETWEEN: The Sub-Collector, And Land Acquisition Officer, Vijayawada. … Appellant/Respondent a n d Valluru Venkateswara Rao (died) Per LRs. … Claimants/Respondents THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE SANJAY KUMAR L.A.A.S.NO.1436 OF 2005 J U D G M E N T (Per Sri Justice Sanjay Kumar) An appeal by the State against the Order and Decree dated 13.10.2003 passed by the reference Court of the learned Senior Civil Judge, Vijayawada, in L.A.O.P.No.191 of 1995. By the said Order and Decree, the reference Court enhanced the market value of the acquired land from Rs.150/- per square yard to Rs.400/- per square yard. By Notification dated 25.06.1994 issued under Section 4(1) of the Land Acquisition Act, 1894, the State acquired an extent of 508.20 square yards in Mogalrajpuram, Vijayawada Urban Mandal, belonging to the respondents for formation of an approach road. It is relevant to note that earlier, acquisition proceedings were initiated under Notification dated 09.01.1975 issued under Section 4(1) of the Act of 1894, but the said proceedings were permitted to lapse. However, possession of the acquired land was taken pursuant to the earlier notification on 18.06.1978. After due enquiry, by Award dated 30.08.1994, the Land Acquisition Officer fixed the total compensation payable to the respondents at Rs.1,19,893.60 Ps. Dissatisfied therewith, the respondents herein sought reference under Section 18 of the Land Acquisition Act, 1894 (for brevity, ‘the Act of 1894’) claiming Rs.500/- per square yard. Before the reference Court, the second respondent was examined as P.W.1 and marked two documents while the Land Acquisition Officer was examined as R.W.1. Ex.A.1 sale deed dated 08.11.1993 pertained to an extent of 200 square yards which was sold for Rs.80,000/-, putting the value thereof at Rs.400/- per square yard. As this sale transaction was proximate to the date of notification under Section 4(1) of the Act of 1894 and the land covered by the said sale was adjacent to the acquired land, the reference Court placed reliance on the same and accordingly adopted the market value of Rs.400/- per square yard. The order reflects that the reference Court rejected the request of the claimants for payment of interest from the date of taking over of possession of their lands. The reference Court referred to the Judgment of the Supreme Court in SIDDAPPA VASAPPA KURI V/s. SPECIAL LAND ACQUISITION OFFICER[1] which opined that the entitlement of the claimants under the Act of 1894 would be only from the date of the Notification under Section 4(1) thereof and not from an earlier date when possession was taken. The concluding portion of the order reads to the effect that the claimants are therefore entitled to claim interest on solatium and additional market value on the land as per the Constitution Bench decision in SUNDER V/s. UNION OF INDIA[2]. However, the decree drawn up pursuant to the said order erroneously shows that the claimants are entitled to interest at the rate of 9% for a period of one year from the date of taking possession of the land, which is contrary to the order and also the judgment of the Supreme Court. The taking over of possession of the respondents’ land prior to the date of notification under Section 4(1) of the Act of 1894 is not as per the scheme of the said enactment and cannot therefore be validated by granting interest under Section 34 of the Act of 1894 from such date. We however see no reason to interfere with the determination of the market value by the reference Court as the reference Court was guided by a comparable sale. The Appeal is therefore dismissed. However, the reference Court shall issue a fresh decree in terms of and in keeping with its order in so far as the payment of interest is concerned. In the circumstances, there shall be no order as to costs. ------------------------------ GODA RAGHURAM,J -------------------------- SANJAY KUMAR,J 19TH JANUARY, 2011. PGS [1] AIR 2001 SC 2951 [2] 2001 (5) ALD 136 (SC)