HON’BLE SRI JUSTICE N.V. RAMANA AND HON’BLE SRI JUSTICE K.S. APPA RAO L.A.A.S.No.526 of 2008 Date: 26-07-2011 Between: The Land Acquisition Officer …….. Appellant and K. Satyanarayana Reddy and others ………. Respondents HON’BLE SRI JUSTICE N.V. RAMANA AND HON’BLE SRI JUSTICE K.S. APPA RAO L.A.A.S.No.526 of 2008 ORDER: (Per Hon’ble Sri Justice N.V. Ramana) This Appeal is filed against the order dated 11-03-2008 passed in O.P.No.54 of 2003 on the file of the Senior Civil Judge at Gadwal. 2. The brief facts of the case are that the lands of the claimants situated at Arepally village of Atmakur Mandal, were acquired by the Government, by issuing the notification under Section 4(1) of the Land Acquisition Act, 1894 (for short ‘the Act’) for the purpose of tail channel of 18L Minor of D.No.6 of PJP. The land Acquisition Officer, after due enquiry, passed the award on 05-10-2002 classifying the lands into three categories i.e., dry land being irrigated as wet through well water as category No.I, bore well water and PJP canal water as category No.II and dry lands as category No.III, and fixing the market value of Rs.36,500/- per acre for category No.I lands, Rs.34,500/- per acre for category No.II lands and Rs.30,300/- per acre for category No.III lands. The claimants, having not satisfied with the quantum of market value fixed by the Land Acquisition Officer, sought for reference and accordingly, the matter was referred to the Reference Court under Section 18 of the Act. 3. During the course of trial, on behalf of the claimants, PWs.1 to 4 were examined and Exs.A-1 to A-5 were got marked. On behalf of the Land Acquisition Officer, RW-1 was examined and Ex.B-1 was got marked. The Reference Court, after considering the oral and documentary evidence adduced by both parties, enhanced the market value to Rs.69,000/- per acre for all the lands other than the garden land of Ac.1-00 classified as category No.I, and enhanced the market value of the garden land of Ac.1-00 classified as category No.I, to Rs.2,00,000/- per acre. Being aggrieved by the same, the Land Acquisition Officer preferred the present appeal. 4. It is contended by the learned Government Pleader that the Reference Court enhanced the market value of the acquired lands without there being any evidence and there is no need for giving any escalation while assessing the market value of the acquired lands and the Reference Court erred in giving escalation. Therefore, the order passed by the Reference Court cannot be sustained and the same is liable to be set aside. 5. On the other hand, the learned counsel appearing for the claimants-respondents contended that basing on Ex.A-1, copy of the award passed in O.P.No.42 of 1990 and batch, dated 07-09-1994, which was confirmed by this Court in A.S.No.1447 of 1994 and batch, dated 08-07-1995, the Reference Court rightly enhanced the market value of the acquired lands and there are no grounds to interfere with the same. 6. Heard the learned Government Pleader and the learned counsel appearing for the respondents-claimants and perused the impugned order and the material placed on record. 7. The lands of the claimants were acquired in Arepally village of Atmakur Mandal as per the award passed by the Land Acquisition Officer. The evidence of RW-1 is that Krishna river is nearer to the lands under acquisition and that Motlampally and Medpally villages are adjacent to Arepally village, and the lands of all those villages are fertile and having potentiality and the irrigation source is also one and the same. The Reference Court relied upon a notification, which was issued with reference to the acquisition of the lands in Medpally village and published on 06-04-1989, whereunder the market value was fixed at Rs.30,000/- per acre, and accordingly, took the market value of the acquired lands in the present case as Rs.30,000/- per acre as on 06-04-1989. However, in the present case, the notification was published on 31-05-2002 and therefore, taking into consideration of the gap of 13 years between the two notifications, the Reference Court gave escalation @ 10% per annum, which is 130% for 13 years, and accordingly, enhanced the market value to Rs.69,000/- per acre for the lands other than the garden land of Ac.1-00 classified as category No.1. 8. In view of the reasoning given by the Reference Court, we are of the view that the above calculation and fixation of the market value by the Reference Court is in accordance with the settled principles of law and more particularly the evidence as well as the award clearly indicate that the villages, in which the acquired lands are situated, are nearer to the villages of the previously acquired lands, and they are fertile and potential and their irrigation source is also one and the same. In view of the above circumstances, we hold that the Reference Court rightly placed reliance on the notification relating to the acquisition of the lands in Medpally village, which is nearer to the village of the present acquisition, and fixed the market value, after giving escalation, at Rs.69,000/- per acre for the lands other than the garden land of Ac.1-00 classified as Category No.I. Therefore, we do not see any reason to interfere with the order passed by the Reference Court in this regard. 9. So far as the market value of Ac.1-00 classified as category No.I land is concerned, the Reference Court observed that the garden land of PW-4 situated at Nandimalla was acquired through the notification, dated 20-02-1997 and the Land Acquisition Officer fixed the market value at Rs.39,000/- and Rs.42,000/- per acre grouping the garden land into two categories, and on reference, through Ex.A-5, the market value of those lands was fixed at Rs.1,60,2000/- per acre. The notification in the present was published on 31-05-2002. The Reference Court relied upon the copy of the order passed by it in O.P.No.227 of 1992 pertaining to the acquisition of the lands in Earladinne village whose market value was fixed at Rs.1,60,200/- per acre and which was marked as Ex.A-5 in O.P.No.28 of 2002, and accordingly, enhanced the market value of the acquired lands in the present case to Rs.2,40,300/- per acre after giving escalation of 50% for the five years as there is gap of five years between the two notifications, however, restricted the market value to Rs.2,00,000/- per acre, as the claim of the claimants is for Rs.2,00,000/-. 10. There is no evidence to show that Earladinne village is adjacent to the Arepalli village. According to the learned counsel for the claimants-respondents, Earladinne village is very next to the Arepalli village and the market value of the lands acquired in Earladinne village was fixed at Rs.1,60,200/- per acre in O.P.No.227 of 1992, and basing on the same, the Reference Court enhanced the market value of the lands under acquisition after giving escalation. However, this Court in A.S.No.2251 of 1996 and batch modified the order in O.P.No.227 of 1992 and fixed the market value of the garden land at Rs.90,000/- per acre. 11. Therefore, in view of the above circumstances, we feel that the market value of Rs.2,00,000/- per acre fixed by the Reference Court for the garden land of Ac.1-00 classified as category No.I land, is liable to reduced and accordingly, the same is reduced to Rs.90,000/- per acre. 12. In the result, the appeal is allowed in part. The market value of Rs.69,000/- per acre fixed by the Reference Court to the lands other than category No.I, is confirmed, and the market value of Rs.2,00,000/- per acre fixed by the Reference Court for the garden land of Ac.1-00 classified as category No.I, is reduced to Rs.90,000/- per acre. No order as to costs. ______________ N.V. RAMANA, J _______________ K.S. APPA RAO, J Date: 26-07-2011 YCR