THE HON'BLE SRI JUSTICE A.GOPAL REDDY and THE HON'BLE SRI JUSTICE K.S. APPA RAO L.A.A.S.M.P.No.998 of 2011 and L.A.A.S.No.725 of 2006 JUDGMENT: (Per Hon’ble Sri Justice A.Gopal Reddy) When the vacate stay petition is taken up for hearing, both the counsel consented for disposal of the appeal itself on merits. As the acquisition is of the year 1986, we are inclined to dispose of the main appeal. This appeal under Section 54 of the Land Acquisition Act, 1894 (for short ‘the Act’) by the Land Acquisition Officer, L.A. Unit, L.M.D Colony, Karimnagar, is directed against the order and decree, dated 19.04.2006, passed by the Senior Civil Judge, Karimnagar in O.P.No.75 of 2002, whereby the reference Court enhanced the market value of the acquired land to Rs.35,000/- per acre as against Rs.6,000/- per acre awarded by the Land Acquisition Officer. An extent of Acs.9.02 guntas of land situated at Vannaram Village, Manakondur Mandal, Karimnagar District was acquired by the Government for excavation of DBM-9 canal under SRSP in the limits of Vannaram Village. In view of the urgency, possession of the land was taken on 03.01.1983 followed by draft notification under Section 4(1) of the Act, which was published in the Gazette on 12.10.1986. The Land Acquisition Officer, after following the due procedure, passed Award No.32/1988-89 dated 12.10.1988 fixing the market value of the acquired land at Rs.6,000/- per acre, as against the claim of Rs.1,00,000/- per acre. Dissatisfied with the fixation of the market value, the claimants sought for reference under Section 18 of the Act. On reference being received, the reference Court registered the same as O.P.No.75 of 2002 and issued notices to the parties. In pursuance of the said notices, the claimants appeared before the reference Court and filed a claim statement claiming compensation for the acquired land at Rs.10,000/- per gunta i.e., Rs.4,00,000/- per acre. To prove the market value prevalent as on the date of issuance of notification, on behalf of the claimants, the third claimant was examined as P.W.1 and two more witnesses were examined as P.Ws.2 and 3 and got marked Exs.A.1 to A.6. On behalf of the Land Acquisition Officer, the Special Deputy Collector was examined as R.W.1 and got marked Exs.B.1 to B.3 i.e., copies of the award, award proceedings and sale deed respectively. Taking into consideration the evidence of P.Ws.1 to 3 and also Exs.A.1 and A.2 i.e., sale deeds dated 20.05.1986 and 22.10.1984 respectively, coupled with the earlier award passed by the reference Court in O.P.No.67 of 2002, dated 24.03.2005, the reference Court fixed the market value of the acquired land at Rs.35,000/- per acre with all statutory benefits and interest from the date of taking possession till the date of award. Questioning the correctness of the fixation of market value, the Land Acquisition Officer filed the present appeal. We have heard the learned Government Pleader for Land Acquisition appearing on behalf of the appellant as well as the learned counsel for the respondents/claimants and gone through the entire record including the evidence adduced by the parties. The third claimant, who was examined as P.W.1, deposed that the acquired lands are very adjacent to the village abadi and they are useful for house sites due to extension of village towards canal; that the acquired lands are situated at a distance of 18 KMs from Karimnagar District Headquarters and 10 KMs from Manakondur Mandal Headquarters; that there are Government Schools and Private Schools in the village; that the village is provided with all civic amenities like electricity, telephone sub-exchange, telecommunications, animal husbandry, key center, protected water supply scheme, road transport facilities, single window society etc., and that the acquired lands are situated near the State High Way leading from Warangal to Karimnagar and Rayapatnam. P.W.2, who is the vendor of the land covered by Ex.A.1 deposed that himself and one Parupally Ramreddy sold the land to an extent of 665 square yards in Sy.No.1095 situated at Gangipalli Village to one Keesara Chandraiah for a consideration of Rs.8,000/-, which comes to Rs.58,225/- per acre, under registered sale deed dated 20.05.1986. P.W.3, who is claimant No.23 in O.P.No.67 of 2002 deposed that his lands along with the lands of other claimants situated at Gangipalli Village have been acquired by the Land Acquisition Officer for the purpose of excavation of sub-distributory canal under SRSP, in the limits of Gangipalli Village; that the Land Acquisition Officer awarded compensation of Rs.6,700/- per acre; that on reference, the reference Court enhanced the compensation from Rs.6,700/- to Rs.35,000/- per acre relying upon the Exs.A.1 and A.2 marked therein. The evidence adduced by the parties also discloses that the lands acquired in O.P.No.67 of 2002 and the lands acquired in the present O.P are situated adjacent to each other and similar in all respects. The same has not been rebutted by the Land Acquisition Officer. Further, it is brought to our notice that the appeal vide L.A.A.S.No.1609 of 2005 preferred by the Land Acquisition Officer against the order and decree, dated 24.03.2005, passed in O.P.No.67 of 2002 has been dismissed by this Court confirming the fixation of market value by the reference Court. It is fairly well settled that the previous judgment determining the market value of the lands, which are adjacent to the acquired lands, can be admitted in evidence (See Bhag Singh And Others vs Union Territory Of Chandigarh[1]). Therefore, in view of the settled legal position, we are of the view that the fixation of market value @ Rs.35,000/- per acre by the reference Court is just and reasonable compensation to which the claimants are entitled to and the same needs no interference by this Court. However, the learned Government Pleader for Land Acquisition is right in his submission 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. The same has not been controverted by the learned counsel for the respondents/claimants. 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[2] and R.L. Jain (D) By LRs. v. DDA and Ors.,[3]). In view of the same, awarding of interest and additional market value from the date of taking possession cannot be sustained and the same can be fixed only from the date of issuance of notification under Section 4(1) of the Act till the date of passing of the award. Further, it is made clear that the claimants are entitled to interest on the enhanced compensation including additional market value and solatium as per the judgment of the Supreme Court in Sunder v. Union of India[4]. Accordingly, we modify the impugned order to the extent of awarding additional market value and interest and the claimants are entitled to additional market value from the date of issuance of notification till the date of passing of award and interest @9% per annum on the enhanced compensation from the date of notification for a period of one year and thereafter @15% per annum till the date of realization. Since it is represented that pursuant to the interim order passed by this Court on 27.12.2006, the appellant has already deposited the decretal amount, the respondents/claimants are entitled to withdraw the same without furnishing any security. In the result, the vacate stay petition and the appeal are disposed of. There shall be no order as to costs. ________________ A. GOPAL REDDY, J ________________ K.S. APPA RAO, J Date: 10.08.2011 va [1] AIR 1993 SC 222 [2] (2002) 1 SCC 142 [3] [2004] 4 SCC 79 [4] AIR 2001 SC 3516