HONOURABLE SRI JUSTICE A. GOPAL REDDY AND HONOURABLE SRI JUSTICE B.CHANDRA KUMAR APPEAL SUIT Nos.843 and 882 of 2002 A.S.No.843 of 2002 Between: The Special Deputy Collector, Land Acquisition-cum-LOC Unit, SRSP, Pochampad … Petitioner and Gunnu Bao and others … Respondents A.S.No.882 of 2002 Between: The Special Deputy Collector, Land Acquisition-cum-LOC Unit, SRSP, Pochampad … Petitioner and Rajeshwar and others … Respondents This court made the following: HONOURABLE SRI JUSTICE A. GOPAL REDDY AND HONOURABLE SRI JUSTICE B.CHANDRA KUMAR APPEAL SUIT Nos.843 and 882 of 2002 COMMON ORDER: (per the Hon’ble Sri Justice A.GOPAL REDDY) These appeals, which arise out of the same notification, but covered by different awards, can be disposed of by this common order. Facts, which give rise to filing of these appeals, are briefly stated as under: - Lands to an extent of Ac.11-31 guntas in survey Nos.63 and 65 and Ac.17-31 guntas situated in survey Nos. 46, 57, 58, 59, 60, 61, 62 and 64 of Chondi village, Kubeer Mandal of Adilabad District were acquired for the purpose of formation of new silt arresting tank across local stream. Possession of the lands was taken on 07.01.1995. Draft notification under Section 4(1) of the Land Acquisition Act, 1894 (for short, “the Act”) was published on 04.03.1996. The lands of Ola village, which are subject matter of A.S.Nos.1148 of 2002, 1918 and 3406 of 2003, were also acquired through the very same notification. The Land Acquisition Officer after complying the due formalities passed an award, dated 15.03.1997-Ex.A1, fixing the market value of the acquired lands at Rs.17,000/- per acre. Dissatisfied with the fixation of the market value, the claimants sought for reference of the matters to the civil Court. On such reference being made, one of the claimants got examined himself as R.W.1 and the purchaser under Ex.B1, dated 30.10.1995, as R.W.2, wherein Ac.1- 00 of land was sold at Rs.25,000/- per acre on 30.10.1995. On behalf of the Land Acquisition Officer, P.W.1 was examined and Ex.A1 was marked. Nothing contra evidence has been adduced by the Land Acquisition Officer to show that Ex.B1-sale deed was brought into existence to claim higher compensation. Further, the Land Acquisition Officer in his award under Ex.A1, dated 15.03.1997, himself referred to item No.4 wherein Ac.1-00 of land was sold at Rs.25,000/- per acre. Taking into consideration of all the facts, the reference Court enhanced the market value of the acquired lands at Rs.25,000/- per acre with all statutory benefits and awarded interest from the date of taking possession i.e., 07.01.1995, which was prior to the issuance of the notification. We have heard the learned Government Pleader and also the learned counsel for the claimants. In support of the claim for enhancement, the claimants sought to rely upon the testimony of R.W.2 besides Ex.B1 sale deed, dated 30.10.1995. As seen from the evidence on record, R.W.1 deposed that they used to raise cotton and chilly crops and used to get Rs.25,000/- per acre. R.W.2, who is the purchaser under Ex.B1, deposed that he purchased land to an extent of Ac.1-00 at Rs.25,000/- per acre, which was not taken into consideration by the Land Acquisition Officer for fixation of the market value. For the acquired lands pertaining to the Ola Village, the Land Acquisition Officer himself awarded compensation at Rs.20,000/- per acre, but the reference court fixed the market value at Rs.28,000/- per acre, since the lands are superior in quality. The possession of the lands therein was taken on 13.04.1992 and the interest was awarded from the date of taking possession. After going through the entire evidence adduced by the parties, the reference Court rightly taking into consideration Ex.B1-sale deed, wherein Ac.1-00 of land was sold at Rs.25,000/- per acre and the same has been proved through R.W.2 for fixation of the market value which is also the market value as per the sale deed referred to at item No.4 of the award, fixed the market value of the acquired lands at Rs.25,000/- per acre and the same does not call for any interference. It was nextly contended by the learned Government Pleader that awarding of interest by the reference Court from the date of taking possession is not sustainable. Learned counsel for the claimants vehimently contended that the claimants are entitled to interest from the date of taking possession as they are deprived of the property. But in view of the law declared by the Supreme Court in Siddappa Vasappa Kuri v. Special Land Acquisition Officer[1], the starting point for awarding interest is the date of issuance of notification under Section 4(1) of the Act and hence, the claimants are not entitled to interest from the date of taking possession, but are entitled to interest only from the date of issuance of notification. In view of the same, the award of interest from the date of taking possession is, accordingly, set aside and the same is confined from the date of issuance of notification i.e., 04.03.1996 at 9% per annum for a period of one year and thereafter at 15% per annum on compensation amount including Solatium. The Appeal Suits are, accordingly, allowed to the extent indicated above. There shall be no order as to costs. _____________________ A.GOPAL REDDY, J _________________________ B.CHANDRA KUMAR, J February 4, 2011 LMV [1] 2002(1) SCC 142