THE HON’BLE SRI JUSTICE V. ESWARAIAH AND THE HON’BLE SRI JUSTICE NOUSHAD ALI A.S.No.1886 of 1999 JUDGMENT: (per the Hon’ble Sri Justice V. Eswaraiah) This appeal is filed by the claimant against the judgment and decree passed in O.P.No.81 of 1987, dated 31-12-1997, on the file of the Subordinate Judge, Nellore (for short ”the Reference Court”) . The land of the appellant-claimant to an extent of 32 cents i.e., 200 ankanams in Sy.Nos.280/1A, 282/1A and 282/1C situated at Nellore was acquired for formation of road on the eastern side of Railway line, Nellore, under Town Development Scheme, pursuant to 4(1) notification, dated 26-03-1980, and the Land Acquisition Officer passed award No.16/86-87, dated 21-09-1986, fixing the market value @ Rs.350/- per ankanam. The appellant-claimant received compensation on protest and filed an application requesting to refer the matter to the Civil Court under Section 18 of the Land Acquisition Act. On reference, the Reference Court, basing on Ex.A-4-CC of the order in O.P.No.10/79, fixed the market value @ Rs.700/- per ankanam. Except Ex.A-4, all other exhibits are subsequent to 4(1) Notification and, therefore, the Reference Court rightly discarded all other sale transactions. Dissatisfied with the said market value fixed by the Reference Court, this appeal is filed by the claimant contending that the Reference Court has not taken into consideration subsequent steep escalation of value of the market value, as evident from Exs.A-1 to A-3, A-5 and A-6. It is further stated that the land acquired is highly potential and it is situated in developed area surrounded by commercial shops, houses, schools, colleges etc. None of the arguments advanced by the learned counsel appearing for the claimant impresses us to consider the same. Admittedly, all the sale deeds covered by Exs.A-1 to A-3, A-5 and A-6 are subsequent to 4(1) Notification and therefore, the same cannot be considered. However, it is not in dispute that insofar as Ex.A-4 is concerned, an extent of 50 ankanams was acquired for widening of the road, pursuant to 4(1) Notification, dated 29-12-1977 and the Land Acquisition Officer passed award No.11/78 fixing the market value @ Rs.560/- per ankanam. On reference, the Reference Court under Ex.A-4 in O.P.No.10 of 79 fixed the market value @ Rs.700/- per ankanam. Admittedly, the acquisition of the land under Ex.A-4 is more than two years three months prior to acquisition of the land in question. The date of 4(1) Notification of the land in question is 26-03- 1980 whereas the date of notification of the land acquired under Ex.A- 4 is 29-12-1977. Therefore, we are of the opinion that the claimant is entitled for 10% escalation every year. For two years, the claimant is entitled for 20% escalation. But, the Reference Court declined to grant escalation on the ground that the acquired land is situated adjoining railway track and it is at a little distance from the land covered by earlier acquisition under Ex.A-4. The Reference Court also noticed that the Railway track is passing through heart of Nellore Town and the area either side of the railway track is well developed. When the land in question as well as the acquired land under Ex.A-4 is acquired for the purpose of laying road, it cannot be said that the claimant is not entitled for any escalation. Therefore, the Reference Court ought to have granted escalation basing on Ex.A-4. Hence, we are of the opinion that it is just and proper to grant 10% escalation for every year. For two years, the claimant is entitled for 20% escalation. If 20% escalation is added to the market value fixed by the Reference Court at Rs.700/- per ankanam, the claimant is entitled for Rs.840/- per ankanam. Accordingly, the appeal is allowed fixing the market value @ Rs.840/- per ankanam. It is needless to observe that the claimant is entitled for all statutory benefits on the enhanced market value. There shall be no order as to costs. ________________ V.ESWARAIAH, J ________________ NOUSHAD ALI, J Date: 20-10-2010 Prv