THE HON'BLE SRI JUSTICE A.GOPAL REDDY and THE HON'BLE SRI JUSTICE B.CHANDRA KUMAR L.A.A.S.No.54 of 2007 Date: 25.08.2009 Between: The Land Acquisition Officer, Mandal Revenue Officer, Gattu …. Appellant And Gandla Saranappa (died) per L.R Shivappa …. Respondent Counsel for the Appellant: G.P for Land Acquisition Counsel for the Respondent: SRI S.Venkateswara Reddy THE COURT MADE THE FOLLOWING: JUDGMENT (Per the Hon’ble Sri Justice A.Gopal Reddy) This appeal under Section 54 of the Land Acquisition Act, 1894 (for short ‘the Act’) is directed against the order, dated 20.09.2006 passed by the Senior Civil Judge, Gadwal in O.P.No.145 of 1998, whereby and whereunder the reference Court enhanced the compensation of the acquired land 10 times as against the compensation awarded by the Land Acquisition Officer. An extent of Acs.3.28 cents of land situated in Survey No.139 of Penchikalapad Village, Gattu Mandal was acquired for the purpose of providing house sites to the weaker sections of the community, by issuing a draft notification under Section 4(1) of the Act on 29.01.1982. The Land Acquisition Officer, after completing all the formalities, passed Award No.15/1982, dated 30.03.1982, fixing the market value of the acquired land at Rs.3,000/-per acre. Dissatisfied with the fixation of the market value, the claimant sought for reference under Section 18 of the Act to the Civil Court. Accordingly, the matter was referred to the Civil Court. On receipt of notice, the claimant appeared before the Civil Court and claimed compensation @ Rs.30,000/- per acre. During the pendency of the reference, the original claimant died and therefore, his son was brought on record. On behalf of the claimant, the son of the original claimant was examined as P.W.1 and one more witness was examined as P.W.2 and Exs.A.1 and A.2 were marked. On behalf of the Land Acquisition Officer, he examined himself as R.W.1 and copy of Award No.15/1982 dated 30.03.1982 was marked as Ex.B.1. P.W.1 deposed that the lands acquired are adjacent to the village and are having potentiality to use as house sites. He further deposed that for the lands acquired in Gorlakhandoddi Village for the same purpose of providing house sites to the weaker sections of the community under notification dated 02.08.1985, the Land Acquisition Officer awarded compensation at Rs.3,000/- per acre. On reference, the reference Court enhanced the compensation to Rs.30,000/- per acre (i.e., net at Rs.22,500/- per acre after deducting 1/4th area as against the rate fixed by the Land Acquisition Officer at Rs.3,000/- per acre) under Ex.A.1, certified copy of the award in O.P.No.2 of 1988 dated 26.04.1995, and the same was confirmed by this Court by order dated 16.03.2004 in A.S.No.923 of 1995- Ex.A.2. The reference Court, taking into consideration Exs.A.1 and A.2, while fixing the market value of the acquired land at Rs.30,000/- granting escalation @35% on the presumption that the notification covered by the said exhibits was prior to the issuance of the present notification, which is not sustainable since the present lands were acquired 3½ years prior to the issuance of the notification covered by Ex.A.1. No doubt the role of guess work is inherent in determination of the compensation. But the lower court committed blunder in granting escalation taking into consideration the compensation fixed for the lands, which were acquired 3 ½ years after the present acquisition, and hence the same is set aside. Then there remains what is the true market value for which the claimants are entitled to? The evidence of R.W.1, the Land Acquisition Officer, who passed the award shows that the lands of Gattu Mandal are similar in nature as far as the fertility and potentiality are concerned We have also noticed that the for the lands acquired in Nallagatla Thanda covered by Award No.3 of 1982, where Notification under Section 4(1) of the Act was published in the Gazette on 31.12.1981, the Land Acquisition Officer passed award fixing the compensation at Rs.3,000/- per acre. Further, for the lands covered under Ex.A.1, which were acquired nearly four years after also, the Land Acquisition Officer fixed the very same market value at Rs.3,000/- per acre. Apart from the same, we have also noticed that whatever may be the date of notification, the Land Acquisition Officer fixed the same market value for the acquired lands which are situated in different villages of Gattu Mandal. Today, in A.S.No.36 of 2007 covered by Award No.3/1982 at Nallagatla Thanda, we have confirmed the fixation of the market value @ Rs.8,000/- per acre by the reference Court. Further, the reference Court under Ex.A.1 for the lands covered by the notification dated 02.08.1985 in O.P. No.2 of 1988 fixed the net market value of the acquired land at Rs.22,500/-per acre. Since the notification covered by Ex.A1 was issued 3 ½ years after the present notification, the claimant is entitled to compensation @ Rs.15,000/- per acre, which figure is arrived at after deducting 35% of amount towards escalation (Rs.22,500/- - Rs.7,875/- (22,500/- x 35/100)). We, accordingly, fix the market value of the acquired land at Rs.15,000/- per acre, since there is no material available on record. The award passed by the lower Court is substituted with Rs.15,000/- per acre in the place of Rs.30,000/- per acre with all statutory benefits. However, we made it clear that since the award is passed prior to the amendment of Section 23(1-A) of the Act, the claimant is not entitled to additional market value, but they are entitled to 30% solatium. The claimant is also entitled to interest @9% per annum from the date of taking possession for a period of one year and thereafter @15% per annum till the date of realization. In the result, the appeal is allowed to the extent indicated above. There shall be no order as to costs. ________________ A. GOPAL REDDY, J __________________ B.CHANDRA KUMAR, J Date: 25.08.2009 va