HON’BLE SRI JUSTICE N.V.RAMANA AND HON’BLE SRI JUSTICE K.S.APPA RAO L.A.A.S.No.44 of 2007 and A.S.No.4474 of 2004 Date: 12-7-2011 L.A.A.S.No.44 of 2007: Between Govt. of A.P., Through Revenue Divisional Officer (L.A.), Sangareddy … Appellant/Referring Officer and P.Kishta Reddy and 2 others … Respondents/Claimants A.S.No.4474 of 2004: Between P.Kista Reddy … Appellant/Claimant and Govt. of A.P., Through Revenue Divisional Officer (L.A.), Sangareddy … Respondent/Respondent HON’BLE SRI JUSTICE N.V.RAMANA AND HON’BLE SRI JUSTICE K.S.APPA RAO L.A.A.S.No.44 of 2007 and A.S.No.4474 of 2004 Common Judgment: (per N.V.Ramana, J.) The issue involved in both the appeals is one and the same and that being the reason they are disposed of by this common judgment. 2. L.A.A.S.No.44 of 2007 is filed by the State-Revenue Divisional Officer (RDO), Sangareddy against the order and decree dated 04-8-2004 in O.P.No.85 of 1996 passed by the Senior Civil Judge, Sangareddy, Medak district enhancing the compensation for the acquired lands at Rs.24,000/- per acre from Rs.9,500/- per acre awarded by the RDO; whereas A.S.No.4474 of 2004 is filed by the 1st claimant in the O.P., against the very same order seeking to enhance the compensation at Rs.15/- per square yard. 3. The brief facts of the case are that the lands to an extent of Ac.4-20 guntas of the 1st claimant and Ac.3-00 each of the claimants 2 and 3 in Survey No.616 of Atmakur village in Sadasivpet Mandal were acquired by the Government for providing house-sites to Weaker Sections. Possession of the land was taken by the Government on 08-9-1986. Notification under Section 4(1) of the Land Acquisition Act, 1894 (‘the Act’ for short) was issued on 19-12-1993. An award was passed by the RDO cum Land Acquisition Officer (LAO) on 24-6-1995. After enquiry, the LAO has fixed the market value of the land at Rs.9,500/- per acre. Aggrieved by the said fixation, the claimants have preferred reference under Section 18 of the Act and the reference Court has increased the compensation from Rs.9,500/- to Rs.24,000/- per acre by an order dated 04-8-2004 in O.P.No.85 of 1996. Dissatisfied with the order passed by the reference Court, the 1st claimant filed A.S.No.4474 of 2004 seeking enhancement of compensation. Similarly, the State has also filed L.A.A.S.No.44 of 2007 questioning the enhancement of compensation. 4. Before us, the learned counsel for the appellant-1st claimant mainly relied on Ex.A-4, which is a certified copy of the judgment dated 14-12-1994 in O.P.No.316 of 1988. In that O.P., the land in Survey No.615/1 of Atmakur village was acquired by the State for laying Singoor Project pipe line and the LAO has fixed the market value of the said land at Rs.13,000/- per acre, which was enhanced by the reference Court to Rs.24,000/- per acre and the same was confirmed by this Court by order dated 10-7-1998 in A.S.No.2044 of 1995 as per Ex.A-6. 5. Even though the learned counsel for the appellant-1st appellant contended that since the acquired lands have potentiality and suitable for house-sites as they are near to the village, the compensation has to be awarded on the yard-wise basis, and the learned Judge erred in granting compensation lump sum on the basis of acreage without looking into the order of this Court in Ex.A-6. According to the learned counsel for the claimants, the acquisition of the lands in O.P.No.316 of 1988 has taken place in the year 1987 and notification under Section 4(1) of the Act was issued on 02-02-1985 and the market value of the acquired land was enhanced to Rs.24,000/- per acre, and merely advance possession was taken in the year 1986, the claimants are at least entitled to escalation of 10% per year. 6. But, the learned Government Pleader for Appeals appearing for the respondent-LAO submits that there is no material to show that the lands acquired in O.P.No.316 of 1988 and the present lands are similar in nature and in fact, there was no reason to grant compensation for the acquired lands even at Rs.24,000/- per acre. 7. We have heard the learned counsel for the claimants as well as the learned Government Pleader for Appeals and perused the impugned order. 8. The facts are not in dispute. The only question that arises for consideration is whether the reference Court is right in fixing compensation at Rs.24,000/- per acre basing on Exs.A-4 and A-5, order and decree in O.P.No.316 of 1988 and Ex.A-6 judgment in A.S.No.2044 of 1995. 9. The learned Government Pleader for Appeals appearing for the LAO vehemently contended that the acquired lands in O.P.No.316 of 1988 and the present acquired lands are not identical. Therefore, the reference Court cannot rely upon the order in O.P.No.316 of 1988. 10. We have perused the evidence of the RDO, Sangareddy, who was examined as R.W.1. He admitted that Atmakur village is a developed village, which is having all the facilities and also admitted that there is a High School in Atmakur village and the present acquired lands are very adjacent to the lands acquired under Ex.A-4 and also further admitted that the lands are having house-site potentiality and will carry more market value than the agricultural lands. 11. The above evidence of R.W.1 itself is sufficient to note that the present acquired lands are adjacent to the lands acquired in O.P.No.316 of 1988. It is also to be noticed that the market value of the lands, which were acquired in O.P.No.316 of 1988 in the year 1987, was fixed as Rs.24,000/- per acre. The present acquisition is of 1993, at least taking into consideration the growth of land rates, we can consider granting of 10% escalation per each year. Accordingly, for a period of six years i.e., from 1987 to 1993, escalation of 10% of the market value has to be granted. In view of this, we decline to agree with the contention of the learned counsel for the claimants that the market value of the acquired lands has to be considered on square yard basis because the lands have potentiality of house-sites. 12. Accordingly, after taking into consideration the fact that the market value of the acquired lands in O.P.No.316 of 1988 was fixed at Rs.24,000/- per acre in the year 1987, the market value of the present acquired lands after granting 10% escalation per each year will be Rs.38,400/-. Accordingly, we enhance the market value of the acquired lands from Rs.24,000/- to Rs.38,400/- (Rupees thirty eight thousand and four hundred only) per acre. The claimants are entitled to all the statutory benefits from the date of notification issued under Section 4(1) of the Act. 13. In the result, L.A.A.S.No.44 of 2007 filed by the Government- LAO is dismissed and A.S.No.4474 of 2004 filed by the 1st claimant is partly allowed. No costs. ______________ N.V.RAMANA, J. _______________ K.S.APPA RAO, J. 12th July, 2011. Ak HON’BLE SRI JUSTICE N.V.RAMANA AND HON’BLE SRI JUSTICE K.S.APPA RAO L.A.A.S.No.44 of 2007 and A.S.No.4474 of 2004 (Common Judgment of the Division Bench delivered by NVR, J.) 12th July, 2011. (Ak)