THE HON’BLE SRI JUSTICE A.GOPAL REDDY AND THE HON’BLE SRI JUSTICE K.S. APPA RAO A.S.No.2060 of 2001 Judgment (Per the Hon’ble Sri Justice A. GOPAL REDDY) The Land Acquisition Officer-cum-Revenue Divisional Officer, Miryalaguda, filed this appeal under Section 54 of the Land Acquisition Act, aggrieved by the enhancement of compensation made by the learned Senior Civil Judge, Miryalguda, in O.P.No.9 of 1994, dated 16.1.2001. The relevant facts, which are necessary for disposal of the appeal are as under: The Government of Andhra Pradesh acquired an extent of Ac.0- 02 guntas & Ac.0-29 guntas in Sy.Nos.470 & 472 from the claimants 1 and 2; Ac.0-05 guntas dry land in Sy.No.473 from claimant No.3; Ac.0.07 guntas in Sy.No.356 from Claimant No.4; Ac.0-02 ½ guntas in Sy.No.357 from claimant No.5; and Ac.0.03 guntas in Sy.No.358 & Ac.0.04 guntas in Sy.No.364 from claimants 6 and 7 situated in Miryalaguda village, for the purpose of construction of Anicut Surplus Coures Large Tank at Yadgarpally and the possession of the said land was taken on 20.4.1982 followed by notification under Section 4(1) of the Land Acquisition Act, dated 13.2.1992 and draft declaration under Section 6(1) of the Act dated 18.6.1992. The Land Acquisition Officer, after following the due procedure prescribed under the Act and after obtaining sale statistics of three years preceding to the draft notification viz., from 1.5.1989 to 30.4.1992 fixed the market value at the rate of Rs.25,000/- per acre by Ex.B1-award dated 30.4.1993. Being dissatisfied with the same, the claimants sought for reference under Section 18 of the Act. On reference being made and on receipt of notice, the claimants filed a statement claiming the value of the acquired land at the rate of Rs.10,000/- per gunta viz., Rs.4,00,000/- per acre. To substantiate the case, the 1st claimant was examined as P.W.1 and one independent witness was examined as P.W.2 and Ex.A1-Copy of order in O.P.No.11 of 1989 and Ex.A2- copy of sale deed dated 8.2.1993 were marked on behalf of the claimants. On behalf of the Referring Officer, the Revenue Divisional Officer was examined as R.W.1 and Ex.B1-Award was marked. The trial Court on appreciation of oral and documentary evidence particularly Ex.A1-Award copy in O.P.No.11 of 1989 and Ex.A2-Certified copy of registered sale deed dated 8.2.1993 fixed the market value of the acquired land at Rs.2,20,000/- per acre. Challenging the same, the Land Acquisition Officer filed the present appeal. The learned Government Pleader for Appeals contended that the Land Acquisition Officer has duly taken note of transactions that had taken place within a period of three years prior to issuance of draft notification under Section 4(1) of the Act and fixed the correct market value and that the lands in question are situated beyond the municipal limits and therefore, Exs.A1 and A2 cannot be taken as comparable sale transactions and therefore, the order under appeal is liable to be set aside. On the other hand, the learned counsel appearing for the respondents/claimants opposed the said contentions on the ground that Exs.A1 and A2 are genuine transactions and that the trial Court rightly fixed the market value of the acquired land and there are no grounds to interfere with the same. P.W.1, who is the 1st claimant, stated that the land acquisition officer took advance possession of the land in the year 1982 and the lands are potential for house plots and they are situated on the eastern side of the Housing Board colony which is situated on the northern side of the main road leading from Miryalguda to Guntur and that the distance between the last house of the Housing colony and the acquired land is about 50 yards and that there were also houses and poultry farms situated in between Housing Board colony and the acquired lands. He further stated that at the time of acquisition proceedings the house plots were sold in that locality at the rate of Rs.15,000/- per gunta and that the acquired lands are situated within the limits of Miryalaguda Municipality which is a big business center in rice mill business and that the lands for housing board colony were acquired in the year 1984 and the Land Acquisition Officer therein paid compensation at Rs.1,20,000/- per acre with deduction of 1/4th and that upon reference to the Court, it was enhanced to RS.1,40,000/- per acre in O.P.No.11 of 1989 vide Ex.A1 and the distance between the acquired lands and the lands covered under Ex.A1 is about 50 yards. P.W.2- who is a practicing advocate, stated that he purchased an extent of 242 sq. yards in S.No.651 of Miryalaguda revenue village for Rs.31,500/- under a registered sale deed dated 8.2.1993 viz., Ex.A2 for the purpose of construction of a house and he constructed a house therein and that the distance between his house and the acquired lands is about ½ k.m. and the said distance is covered by the Housing Board colony. R.W.1-Revenue Divisional Officer stated that the acquired lands are situated nearby A.P. Housing Board colony and the acquired lands totally were agricultural lands and situated beyond the municipal limits. He admitted that there is Upa Nirmitha Kendram i.e., a place for construction of Cement doors, windows and other materials for the purpose of providing to weaker section for housing programme, which exclusively belongs to the Government situated in the Government land at a distance of one furlong away from the acquired lands and not 20 feet. The sale statistics of the Award proceedings reveal that in the nearby survey numbers of the acquired lands, house plots were sold. Ex.A1 discloses that Ac.4.00 of land in S.No.547 situated in Miryalaguda town belonging to the claimants therein was acquired for housing scheme of A.P. Housing Board and the market value was fixed at Rs.1,20,000/- per acre and on reference to the Court by filing O.P.No.11 of 1989, the same was enhanced to Rs.1,40,000/- per acre. On appeal being filed by the Land Acquisition Officer viz., A.S.No.3814 of 2000, the same was dismissed by this Court by confirming the award in O.P.No.11 of 1989. Admittedly, there is a gap of nearly 8 years between the notification under Ex.A1 and the present acquisition. It is obvious from the evidence that the acquired lands are situated nearby A.P. Housing Board Colony by the time of their acquisition. Apart from that, P.W.2 purchased 242 sq. yards near the lands in question under Ex.A2 and constructed a house therein. Though Ex.A2 is subsequent to the issuance of present notification, it goes to show that there is rapid raise in the prices within the vicinity of the acquired lands. Therefore, even if the year 1984 is taken into consideration as a base, the market value fixed for the lands acquired during such period, is at Rs.1,40,000/- per acre. In such a situation, if the escalation at the rate of 10% is computed for eight years, it comes to nearly Rs.2,52,000/- per acre. Taking into consideration the facts and circumstances of the case coupled with the fact that the claimants are deprived of their land for a period of nearly 10 years as the possession was taken on 20.4.1982 and the award was passed in the year 1993, we are of the considered opinion that fixation of the market value of the acquired lands at the rate of Rs.2,20,000/- per acre by the Court below on the basis of the accepted guidelines by granting escalation keeping in view the price hike, would be just and reasonable. At this stage, it is the contention of the learned Government Pleader that the claimants are not entitled to additional market value and interest from the date of taking possession and they are entitled to the same only from the date of issuance of notification under Section 4 (1) of the Act. It is settled law that the starting point for awarding interest and additional market value is the date of issuance of notification under Section 4 (1) of the act (see Siddappa Vasappa Kuri and another Vs. Special Land Acquisition Officer and another[1] and R.L. Jain (D) By LRs. V. DDA and Ors.,[2]). Insofar as the additional market value is concerned, the Court below had not awarded any additional market value. Admittedly, possession of the land was taken on 20.4.1982 earlier to the issuance of notification. Therefore, the claimants are entitled to additional market value at 12% p.a., under Section 23 (1A) from the date of notification to the date of award i.e., 13.2.1992 to 30.4.1993. But however, the claimants are entitled for solatium at 30% on the enhanced compensation and interest at 9% per annum for one year from the date of notification i.e., 13.2.1992 and thereafter at the rate of 15% p.a., till realization as per law declared in Sunder Vs. Union of India[3]. Accordingly, the appeal is partly allowed as indicated above. No order as to costs. ________________ A. GOPAL REDDY, J _______________ K.S. APPA RAO, J Date: 26.08.2011 NN THE HON’BLE SRI JUSTICE A.GOPAL REDDY AND THE HON’BLE SRI JUSTICE K.S. APPA RAO A.S.No.2060 of 2001 (Judgment delivered by the Hon’ble Sri Justice A. GOPAL REDDY) 26.8.2011 [1] (2002) 1 SCC 142 [2] (2004) 4 SCC 79 [3] AIR 2001 SC 3516