THE HONOURABLE SRI JUSTICE N.V. RAMANA AND THE HONOURABLE SRI JUSTICE K.S. APPA RAO A.S. Nos. 646, 647, 658, 778 and 816 of 2004 COMMON JUDGMENT: (Per NVR,J) The Land Acquisition Officer and Special Deputy Collector (L.A.), Kakinada, filed the present appeals against the common judgment dated 30.04.2003 passed in O.P. No. 48 of 1996 and batch by the Principal Senior Civil Judge, Kakinada, East Godavari District. The present appeals relate to O.P. Nos. 67, 43, 45, 66 and 47 of 1996 respectively. Brief facts of the appeals are that the lands of the respondents- claimants of different extents situated in Jaggammagaripeta village, East Godavari District, were acquired by the Government for the purpose of formation of by-pass road from Peddapuram to Kakinada, by issuing notification under Section 4(1) of the Land Acquisition Act, 1894. After following the due procedure prescribed, the Land Acquisition Officer has passed awards, fixing the market value of the lands at Rs.90/- per square yard. Not satisfied with the compensation awarded and having received the same under protest, the claimants sought reference of the matter to Civil Court under Section 18(2) of the Act, for determination of reasonable compensation. Before the reference Court, P.W.1 was examined and Exs.A1 to A7 were marked on behalf of the claimants, while R.W.1 was examined and Ex. B1 was marked on behalf of the Referring Officer. The reference Court, having considered the oral and documentary evidence adduced on behalf of both sides, felt it just and proper to fix the market value of the acquired lands at Rs. 1,00,000/- per acre and accordingly enhanced the market value of the lands to Rs. 1,00,000/- per acre. The reference Court also granted to the claimants, solatium at 30% and additional market value at 12% per annum on the enhanced market value, and interest at 9% per annum from the date of taking possession or 4(1) notification whichever is earlier, for a period of one year, and thereafter at 15% per annum till the date of payment, on the enhanced compensation, and accordingly answered the references, by the common judgment under appeal. Learned Assistant Government Pleader for Appeals appearing for the appellant contends that the sale deeds got marked by the claimants under Exs. A1 to A7 were created by the claimants, with a view to claim more compensation, and the reference Court erred in placing reliance on those documents and enhancing the compensation, which is on higher side, and thus the judgment under appeals cannot be sustained. On the other hand, learned counsel for the contesting claimants supported the judgment under appeal and prayed for dismissal of the appeals. We have considered the arguments of the learned counsel on either side and perused the judgment under appeals and other material available on record. As can be seen from the record, the respondents-claimants, in support of their claim that the acquired lands have got good potentiality and that the area in which they are situated is a fast developing area and similar lands situated in the vicinity were sold at higher rates, have got marked Exs. A1 to A7. These documents relate to sale transactions that took place in the year 1986 in respect of the lands situated in and around the acquired lands, whereas the notification under Section 4(1) of the Land Acquisition Act, 1984, pertaining to the acquisition of present lands, was approved on 19.08.1992 and published in A.P. Gazette on 11.09.1992. Thus, undoubtedly, Exs.A1 to A7 are much anterior to the 4(1) notification and, therefore, the contention of the learned Assistant Government Pleader for Appeals that Exs.A1 to A7 are created for the purpose of claiming more compensation cannot be accepted. Exs.A1 to A7 evidence the sale of lands situated in and around the acquired lands, for a sale consideration of Rs. 1,000/- per cent, in the year 1986. The sale transactions under Exs. A1 to A7 being anterior to the 4(1) notification and the lands sold thereunder being similar lands situated in the vicinity, we are of the considered opinion that the reference Court has rightly fixed the market value of the acquired lands at Rs. 1,00,000/- per acre, based on comparable sales, and no interference is warranted therewith by this Court. However, so far as grant of interest on the enhanced compensation at 9% per annum from the date of taking possession or from the date of 4(1) notification whichever is earlier, for a period of one year and thereafter at 15% per annum till the date of payment, is concerned, learned Assistant Government Pleader for Appeals submitted that, as per settled law, the claimants are entitled to interest from the date of 4(1) notification alone, but not from the date of taking possession, which was agreed to by the learned counsel appearing for the contesting claimants. Thus, we modify the judgment under appeal to that extent, so far as the present O.Ps. are concerned, and hold that the claimants are entitled to interest on the enhanced compensation as awarded by the reference Court, from the date of 4(1) notification. Except this modification, the judgment under appeals shall stand confirmed in other respects. The appeals are accordingly allowed in part, with the above modification. No order as to costs. __________________ JUSTICE N.V. RAMANA ___________________ JUSTICE K.S. APPA RAO 5th July, 2011 IBL