THE HON’BLE SRI JUSTICE A. GOPAL REDDY AND THE HON’BLE SRI JUSTICE B. CHANDRA KUMAR A.S. No. 1232 of 2001 Dated: 22.09.2009 Between: Vangaveeti Lakshmamma @ Lakshmi (died per LR Siddamsetti Mahalakshmi) .. Appellant/Claim petitioner And The Land Acquisition Officer, Special Deputy Collector, (IPT & Railways), Khammam. .. Respondent/Referring Officer THE HON’BLE SRI JUSTICE A. GOPAL REDDY AND THE HON’BLE SRI JUSTICE B. CHANDRA KUMAR A.S. No. 1232 of 2001 Judgment: (per Hon’ble Sri Justice A. Gopal Reddy) This appeal under Section 54 of the Land Acquisition Act, 1894 (for short ‘the Act’) by the claimant is directed seeking enhancement of the compensation for the acquired land in O.P. No.547 of 1987 on the file of the Senior Civil Judge, Khammam. An extent of Ac.17-17 gts., out of 19-08 gts., of land relating to private owners, including the land of the appellant/claimant to an extent of Ac.1-16 gts., in Survey No.121/2, was acquired for the purpose of excavation of Gollapadu Canal. A draft notification under Section 4(1) of the Act was published in the gazette on 22.01.1983. The Land Acquisition Officer, after obtaining the sales statistics for three years preceding the 4(1) notification from the Sub-Registrar, Khammam, passed an award dated 23.09.1986 fixing the market value for Group-I lands at Rs.8,200/- per acre and for Group-II lands at Rs.9,000/- per acre with interest at 6% p.a., from 11.08.1938 to 29.04.1982, 9% p.a., from 30.04.1982 to 29.04.1983 and 15% p.a., from 30.04.1983 to 23.09.1986. The claimants, having received the compensation under protest, sought for a reference to the Civil Court under Section 18 of the Act for due determination of the compensation for the acquired land. On a reference being made, the claimants, who appeared before the Civil Court, filed their claim statements claiming compensation at Rs.75/- per sq. yard. Since O.P. Nos.545, 547, 549, 550, 551 and 552 of 1987 arise out of the same award, they were clubbed together and disposed of by a common judgment. In order to prove the market value of the acquired land, PWs.1 to 7 were examined and Exs.A-1 to A-37 were marked on behalf of the claimants. On behalf of the Referring Officer, RWs.1 and 2 were examined and Exs.B1 to B3 were marked. According to the claimant in O.P. No.547 of 1987, her lands were located in the industrial belt in Survey No.121, where several Rice Mills, Oil Mills, Dal Mills and Bran Oil Mills are located, abutting Suggulavari factory. Venkatalaxmi Talkies is just about 100 yards while Ambe picture palace is only 200 yards away from the acquired land. Many educational institutions, Government Women’s College, SSR Junior College and Grain market surrounded the acquired land, which is nearer to Gandhi Chowk, Railway Station and RTC bus stand. The lower Court, after taking into consideration the evidence adduced by the parties and several lands abutting Survey No.121 acquired for the purpose of 50 feet bye-pass road from Suryapet road junction to Ranganayakulagutta covered by O.P. Nos.7 to 11, 13, 15 and 16 of 1989, whereby his predecessor fixed the market value of the acquired land at Rs.30/- per sq. yard, and copy of judgment in O.P. Nos. 7 to 11, 13, 15 and 16 of 1989, dated 10.06.1994, filed in O.P. No.12 of 1989, in which the claim petitioner herein is also one of the claim petitioners, wherein notification under Section 4(1) of the Act was published on 22.11.1985 and award was passed on 30.09.1988, which would disclose that the notification therein was published two years 10 months after publication of 4(1) notification in the present case, fixed the market value of the acquired land at Rs.60,000/- per acre in contra distinction of the market values of the lands in O.P Nos.545, 549, 550, 551 and 552 of 1987, where it was fixed at Rs.40,000/- per acre. Seeking further enhancement of the compensation, the present appeal is filed. Sri Meherchand Nori, learned counsel for the appellant, having referred the judgment in O.P. Nos.7 to 11, 13, 15 and 16 of 1989, wherein the market value was fixed at Rs.30/- per sq. yard for the lands acquired in Survey No.121 for the purpose of 50 feet bye-pass road from Suyapet road junction to Ranganayakulagutta, and the judgment in O.P. No.12 of 1989, wherein the claim petitioner herein is also one of the claim petitioners and the market value for the acquired land was fixed at Rs.10,000/- per acre, which was enhanced to Rs.30/- per sq. yard, which is the subject matter of A.S. No.164 of 2002, contended that the claimant is entitled to the same compensation as was fixed in O.P. No. 12 of 1989, when the small extent of land can also be taken into consideration for fixing the market value to judge the potentiality of the acquired land. PW.4, the power of attorney holder of the claim petitioner, was examined on behalf of the claim petitioner. Exs.A26, A27 and A28 are the sale deeds, wherein the lands were sold at Rs.96.50 ps., Rs.40.60 ps., and Rs.47.83 ps., per sq. yard, covered by an extent of 310.66 sq. yards, 418 sq. yards and 418.13 sq. yards respectively. The claimant claims that she is entitled to Rs.60/- per sq. yard as on the date of notification. Learned Government Pleader opposed the claim of the appellant contending that the appeal in A.S. No.164 of 2002, preferred against O.P. No.12 of 1989, was allowed in part by this Court confirming the enhancement made by the Court below from Rs.10,000/- and Rs.15,000/- per acre to Rs.1,00,000/- per acre, and therefore, the claimant is not entitled to Rs.60/- per sq. yard as claimed by her, since the notification therein was published two years 10 months subsequent to the present notification. There is no dispute that the small extents of lands covered by sale deeds can also form basis for fixation of the market value after giving due deductions for developmental charges, if larger extents of lands were acquired. In the present case, it is also not denied by the learned counsel that the claimant herein is one of the claimants in O.P. No. 12 of 1989, wherein the lands in Survey No.121 were acquired for the purpose of 50 feet bye-pass road from Suryapet road junction to Ranganayakulagutta under a notification dated 22.11.1985, which is two years ten months after the present notification. The lower Court in O.P. Nos.7 to 11, 13, 15 and 16 of 1989, fixed the market value of the acquired land at Rs.30/- per sq. yard, including O.P. No.12 of 1989, and this Court in A.S. No.164 of 2002, dated 12.11.2008, confirmed the enhancement made by the court below from Rs.10,000 and Rs.15,000/- per acre to Rs.1,00,000/- per acre. As seen from the award, the claimants were awarded interest by the Land Acquisition Officer at 6% p.a., from 11.08.1938 to 29.04.1982 on the compensation fixed at Rs.9,000/- per acre, for which the claimants are not entitled to, except equitable compensation determined on the basis of crop loss. It is now fairly well settled that the crucial date for awarding interest is the date of 4(1) notification. Where the lands are taken possession prior to issuance of 4(1) notification, the starting point for the purpose of calculating interest is either the date of the award or the date of taking possession, whichever is earlier (see Siddappa Vassappa Kuri v. Special Land Acquisition Officer,[1]). As per Section 25 of the Act, the amount of compensation awarded by the Court shall not be less than the amount awarded by the Collector under Section 11. Though the claimants are not entitled to interest anterior to the date of notification, but in view of embargo under Section 25 of the Act, the award of interest cannot be interfered with and the remedy for the Land Acquisition Officer, if any, is only to challenge the award under Article 226 of the Constitution of India, which in fact, has not been challenged by the Land Acquisition Officer. If 6% interest is calculated on Rs.9,000/- from 11.08.1938 to 29.04.1982, it works out to Rs.31,860/-, i.e., nearly Rs.32,000/-. The reference Court, while enhancing the compensation, fixed the market value of the acquired land at Rs.60,000/- per acre, and if the interest of Rs.32,000/- is added to it, it will come to Rs.92,000/- per acre. Since the lands in O.P. No.12 of 1989 were acquired two years ten months subsequent to the present notification, this Court fixed the market value at Rs.1,00,000/- per acre. Therefore, since the claimant was already awarded sufficient compensation, she is not entitled to any further enhancement. Taking the same into consideration, we feel that no further enhancement of compensation is called for since the claimant is awarded compensation of Rs.60,000/- per acre with 30% solatium and 12% additional market value on the enhanced amount from the date of notification i.e., 22.01.1983 till the date of award and interest at 9% per annum for a period of one year and thereafter at the rate of 15% p.a., till realization. The appeal is accordingly dismissed. No costs. _______________________ A. GOPAL REDDY, J. ___________________ B. CHANDRA KUMAR, J. Date: 22.09.2009 Nsr [1] 2001 (8) Supreme 89