IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE 29th DAY OF MARCH, TWO THOUSAND AND TEN PRESENT HON'BLE SRI JUSTICE A.GOPAL REDDY AND HON'BLE SRI JUSTICE G.V.SEETHAPATHY APPEAL SUIT No.2267 of 1999 Between: The Land Acquisition Officer, Mandal Revenue Officer, Mahabubabad. … Petitioner And J.Manmohan Reddy … Respondent This Court made the following: HON'BLE SRI JUSTICE A.GOPAL REDDY AND HON'BLE SRI JUSTICE G.V.SEETHAPATHY APPEAL SUIT No.2267 of 1999 JUDGMENT: - (Per Hon’ble Sri Justice A.Gopal Reddy) This appeal under Section 54 of the Land Acquisition Act, 1894 (for brevity, “the Act”) by the Land Acquisition Officer, is directed against the order and decree of the Senior Civil Judge, Mahabubabad, dated 19.03.1999 in O.P.No.56 of 1996. An extent of Ac.6-14 guntas of land in S.No.274 of Shanigaram village belonged to the respondent/claimant was taken possession on 13.12.1983 for the purpose of formation of B.C.Colony. The draft notification under Section 4(1) of the Act was issued on 23.11.1990, followed by draft declaration published on 28.11.1990 by the Land Acquisition Officer. The Land Acquisition Officer after obtaining the sale statistics of the preceding three years i.e., from 15.12.1987 to 14.12.1990 from the office of the Sub-Registrar at Mahabubabad and after complying the due formalities, passed an award on 24.03.1992 fixing the market value of the acquired land at Rs.20,000/- per acre with all statutory benefits. Claimant having not satisfied with the fixation of the market value, sought for reference under Section 18 of the Act to the Civil Court for due determination of the market value payable to the claimant. On receipt of the notice, claimant filed claim statement claiming compensation at Rs.50/- per square yard with all statutory benefits stating that the lands are situated adjacent to R & B Road, leading from Mahabubabad to Nellikuduru and adjacent to Mahabubabad town, situated near developed and residential industrial locality and number of houses and poultry farms are situated adjacent to the acquired lands. To prove the market value, claimant himself examined as P.W.1 and the vendee under Ex.A2 was examined as P.W.2 and Exs.A1 to A5 documents were marked. On behalf of the Land Acquisition Officer, one witness was examined as R.W.1 and Exs.B1- award and Ex.B2- award proceedings were marked. P.W.1 deposed that under Ex.A1-sale deed, dated 13.09.1989 an extent of 500 square yards was sold at Rs.10,000/-, under Ex.A2- sale deed, dated 21.04.1990, 148 square yards with a tiled house was sold for Rs.26,000/- at Rs.20/- per square yard, under Ex.A3-sale deed, dated 13.09.1989 an extent of 305 square yards was sold at Rs.20/- per square yard and under Ex.A4-sale deed, dated 08.11.1990 an extent of 25 square yards was sold at Rs.40/- per square yard. The learned Senior Civil Judge after taking into consideration the above oral and documentary evidence of the claimant and also the observation of the Land Acquisition Officer, who also took note of the sale deeds under Exs.A1 to A4 and the sale statistics which were obtained by him; and the acquired land is situated on the main road at a distance of about 1½ kilometre of Mahabubabad and that there are fire station, Fathima High School and houses situated nearby the acquired land; and since the advance possession has been taken seven years prior to the issuance of the notification, fixed the market value of the acquired land at Rs.35,000/- per acre and awarded additional market value at 12% per annum from the date of notification to the date of award i.e., 24.03.1992 and interest at 9% per annum from the date of taking possession i.e., 13.12.1983 for one year and thereafter at 15% per annum till realisation. The only contention raised by the learned Government Pleader is that the claimant is not entitled to interest from the date of taking possession, if at all he is entitled to interest only from the date of issuance of the notification, but not earlier thereto. Learned counsel for the respondent is not exact as to whether the claimant is not entitled to interest from the date of taking possession. In view of the same, while confirming the fixation of the market value at Rs.35,000/- per acre, we set aside the interest awarded by the reference Court from the date of taking possession i.e.,13.12.1983, but confine the same from the date of issuance of the notification i.e., 23.11.1990 at 9% per annum for a period of one year and thereafter at 15% per annum till the payment is made, on the enhanced compensation including additional market value and Solatium at 30% as per the law laid down in Sunder v. Union of India {AIR 2001 SC 3516}. The impugned order is modified to the extent as referred to above. Accordingly, the appeal suit is disposed of. No costs. __________________ A.GOPAL REDDY, J ____________________ G.V.SEETHAPATHY, J 29.03.2010 lmv