THE HON'BLE SRI JUSTICE A.GOPAL REDDY and THE HON'BLE SRI JUSTICE K.S. APPA RAO A.S.No.1690 of 2001 & Cross Objections (SR) No.87172 of 2001 JUDGMENT: (Per Hon’ble Sri Justice A.Gopal Reddy) The appeal and the cross objections are filed by the Land Acquisition Officer and the claimants respectively against the order and decree, dated 17.01.2000, passed by the Additional District Judge, Nizamabad in O.P.No.421 of 1993. Heard the learned Government Pleader for Appeals and the learned counsel appearing for the claimants/cross objectors. The Government through G.O.Ms.No.8 (Irrigation & CAD) (P.W.TG.II) Department dated 15.01.1991, accorded permission for acquiring Acs.25.00 of land for providing house sites to the persons, who were displaced due to acquisition of their lands, of Nallur Village of Balkonda Mandal. Accordingly, an extent of Acs.17.19 guntas situated at Nallur Village and Acs.6.09 guntas situated at Bussapur Village have been acquired, by issuing draft notification under Section 4(1) of the Land Acquisition Act, 1894 (for short ‘the Act’) and declaration under Section 6 of the Act and publishing the same in A.P.Gazette on 30.12.1991 and 31.12.1991 respectively. The possession of the land was taken on 31.01.1992. The substance of the draft notification and the declaration were published in the village on 08.01.1992 and in the local newspapers i.e., Andhra Jyothi and poddu on 12.01.1992 and 25.01.1992 respectively. The Land Acquisition Officer, after gathering sale statistics for the preceding three years prior to the issuance of notification and after complying with due formalities, passed an award fixing the market value of the acquired land at the rate of Rs.18,000/- per acre. Dissatisfied with the fixation of the market value, the claimants, who received the compensation under protest, sought for reference under Section 18 of the Act. On reference being received, the reference Court issued notices to the claimants. On receiving the notices, claimant No.2 filed a claim statement claiming compensation for the acquired land at the rate of Rs.1,20,000/- per acre and Rs.6,500/- per each tree with statutory benefits. Claimant Nos.3 and 7 adopted the claim statement of claimant No.2. Claimant No.19 filed a separate claim statement claiming compensation for the acquired land at the rate of Rs.50/- per square yard and for the trees at the rate of Rs.6,500/- per tree. Claimants 1, 4 to 6, and 8 to 26 filed a memo adopting the claim statement of claimant No.19. To discharge the burden cast upon the claimants to prove the market value of the acquired land, the claimants examined R.Ws.1 to 3 and got marked Exs.B.1 to B.4 i.e., registered sale deeds. On behalf of the Land Acquisition Officer, except marking Ex.A.1 award copy, no oral evidence has been let in. The reference Court, after taking into consideration Exs.B.1 to B.3- sale deeds, while fixing the market value of the acquired land at the rate of Rs.10/- per square yard and giving 1/3rd deduction towards developmental charges, confirmed the compensation awarded by the Land Acquisition Officer in respect of wells and trees. Questioning the enhancement, the Land Acquisition Officer preferred the appeal, whereas the claimants filed the cross objections seeking further enhancement of compensation at the rate of Rs.23.25 ps per square yard. Learned counsel for the respondents/claimants contended that even though sale deeds were produced before the Land Acquisition Officer, which were mentioned at Sl.Nos.4, 7, 8 and 9 in the award where higher transaction took place i.e., at the rate of Rs.20/- per square yard, the Land Acquisition Officer discarded the same, but he admitted in the award that the lands nearby the acquired lands were sold for house sites at higher rates. He further contended that even though the claimants adduced evidence both oral and documentary, the same were not properly appreciated by the reference Court while enhancing the compensation. On the other hand, the learned Government Pleader for Land Acquisition contends that the claimants are not entitled to any further enhancement of compensation. In view of the above rival contentions, the only point that arises for consideration in this appeal is what is the true market value of the acquired land for which the claimants are entitled to? Claimant No.19, who was examined as R.W.1, deposed that National High Way No.7 is situated adjoining Nallur Village; that the acquired lands are fertile lands and they used to raise commercial crops like turmeric and maize; that he sold 413 square yards of land to one Gangaram under Ex.B.1-registered sale deed for a consideration of Rs.8,200/-, which works out to Rs.19.85 ps. per square yard and that he also sold 320 square yards of land to one Gundaji Ramulu under Ex.B.1 for a consideration of Rs.6400/-, which works out to Rs.20/- per square yard. R.W.2, who is a resident of Bussapur Village deposed that under Ex.B.3-sale deed dated 16.09.1981 he purchased Ac.0.04 guntas of land situated at Bussapur for a consideration of Rs.32,000/-, but he got it registered for consideration of Rs.8,000/-. He further deposed that the land covered under Ex.B.3 is situated at a distance of half kilometre from the acquired land. One Chilka Narsaiah, who was examined as R.W.3, deposed that he purchased two plots admeasuring 4192.63 square yards from one Narsaiah for a consideration of Rs.1,70,000/-, which comes to Rs.41/- per square yard, under Ex.B.4, registered sale deed dated 18.12.1992, which took place subsequent to the date of notification under Section 4(1) of the Act. No contra evidence has been let in by the Land Acquisition Officer. Even though the Land Acquisition Officer contended that the sale deeds under Exs.B.1 and B.2 were brought up to claim higher compensation, he referred the same in the award and stated that the land within the vicinity of the acquired land including the acquired land was sold on yardage basis, which clearly establishes that there is lot of demand for house sites due to migration of the displaced persons, whose lands were acquired. Under Ex.B.1 an extent of 413 square yards of land was sold at the rate of Rs.8,200/-, which works out to Rs.19.85 ps. per square yard. Under Ex.B.2 an extent of 320 square yards of land was sold at Rs.6,400/-, which works out to Rs.20/- per square yard. Therefore, the transactions under the said documents can be safely taken into consideration for fixation of the market value of the acquired land. After giving necessary escalation for the time gap between the sale deeds under Exs.B.1 and B.2 and the notification under Section 4(1) of the Act, the market value of the acquired land comes out to Rs.24/- per square yard as on the date of issuance of the notification, and after giving 1/3rd deductions towards developmental charges, the net market value of the acquired land can be fixed at Rs.16/- per square yard, which works out to Rs.77,440/- per acre. We, accordingly, fix the market value of the acquired land at Rs.77,440/- per acre. It is needless to observe 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[1]. In the result, the appeal is dismissed and the Cross Objections are allowed. There shall be no order as to costs. _______________ A. GOPAL REDDY, J _______________ K.S. APPA RAO, J Date: 23.08.2011 va [1] AIR 2001 SC 3516