IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE 22ND DAY OF MARCH, TWO THOUSAND AND TEN PRESENT HON'BLE SRI JUSTICE A.GOPAL REDDY AND HON'BLE SRI JUSTICE G.V.SEETHAPATHY APPEAL SUIT No.430 of 1999 Between: The State of A.P., Through Mandal Revenue Officer. … Petitioner And A.Ramachandra Raju. … Respondent This Court made the following: HON'BLE SRI JUSTICE A.GOPAL REDDY AND HON'BLE SRI JUSTICE G.V.SEETHAPATHY APPEAL SUIT No.430 OF 1999 JUDGMENT: - (Per Hon’ble Sri Justice A.Gopal Reddy) This appeal under Section 54 of the Land Acquisition Act, 1894 (for brevity, “the Act”) by the State of Andhra Pradesh, through the Mandal Revenue Officer, is directed against the order and decree of the Subordinate Judge, Mahabubabad, dated 31.03.1998 in O.P.No.95 of 1996, whereby the market value of the acquired land was fixed at Rs.20,000/- per acre as against Rs.7,500/- per acre awarded by the Land Acquisition Officer. An extent of Ac.2-10 guntas of land in S.Nos.169, 170 and 172 of Narayanapur village belonged to the respondent/claimant was acquired for the purpose of providing house sites to the weaker sections, by publishing a draft notification under Section 4(1) of the Act in the Gazette on 04.02.1984. The Land Acquisition Officer after following the due formalities and after obtaining the sale statistics from the Sub-Registrar, by his award-Ex.B1, dated 23.09.1986 fixed the market value of the acquired land at Rs.7,500/- per acre. Claimant having received the compensation under protest, sought for reference to the civil Court under Section 18 of the Act claiming compensation at Rs.40,000/- per acre. On such reference being made, claimant appeared and filed claim statement. To prove the market value, claimant himself examined as P.W.1 and marked Ex.A1-registration extract of the sale deed, dated 22.07.1978. On behalf of the referring officer, the Mandal Revenue Officer was examined as R.W.1 and Ex.B1–Award, Ex.B2–Award proceedings and Ex.B3-location map were marked. The reference Court after taking into consideration the oral evidence adduced by the parties and the location of the land, which is a bagayath land where commercial crops were raised, arrived the market value at Rs.25,000/- per acre and fixed the same at Rs.20,000/- per acre by awarding 12% per annum additional market value and interest at 9% per annum from the date of taking possession. We have heard the learned Government Pleader and also the learned counsel for the respondent/claimant. Learned Government Pleader contends that in the absence of any sale deed in the village of Narayanapur, fixing the market value basing upon the oral evidence by the reference Court, is not justified. The award of additional market value and interest from the date of taking possession, cannot be sustainable as the same can be granted from the date of issuance of the notification under Section 4(1) of the Act Learned counsel for the respondent has produced Ex.A1-sale deed and contends that under Ex.A1 sale deed an extent of Ac.0-02 guntas (242 sq.yds.) of land was sold for a sum of Rs.1,200/-, which works out to Rs.24,000/- per acre. Since the commercial crops like chillies were grown in the land, which is a bagayath land and adjacent to the village, which will fetch more value, the award of compensation needs no interference. The evidence of P.W.1 and also observation made by the Land Acquisition Officer in his award clearly establish that the Land Acquisition Officer inspected the entire land and that the said land is located along the Z.P.Road, which is a bagayath land and most valuable commercial crops like Chillies were grown in the land. The evidence of the claimant that he was raising cotton and chilli crops in the acquired land and getting yearly income of Rs.20,000/- per acre, has also been corroborated with the observation made by the Land Acquisition Officer. Keeping in view of the location of the acquired land and its potentiality to be used as house sites, the reference Court fixed the market value of the acquired land at Rs.20,000/- per acre. Under Ex.A1 – sale deed, dated 22.07.1998 Ac.0-02 guntas of land situated in Mogilicherla village was sold for Rs.24,000/- per acre. The evidence adduced by the parries also shows that Mogilicherla, Rajole, Narayanapur are adjacent villages and the lands are abutting the Z.P.Road. R.W.1 admitted that the Land Acquisition Officer has not obtained any sale deed from Mogilicherla village and that the acquired lands are adjacent to Narayanapur village i.e., in Abadhi and the lands of Mogilicherla village were also situated on one side of the lands of Narayanapur village. If due escalation is given for the acquired lands, by taking Ex.A1 sale deed into consideration, the market value works out to Rs.38,400/- per acre. Even if we deduct 1/3rd, the market value comes to more than Rs.25,600/- per acre. In view of same, the fixation of the market value by the reference Court at Rs.20,000/- per acre, does not call for any interference. We accordingly confirm the fixation of the market value. Learned Government Pleader rightly contended that the possession was taken prior to issuance of the notification and the claimant is not entitled to interest and also additional market value from the date of taking possession, but the same should be only from the date of notification under Section 4(1) of the Act. We accordingly restrict the award of additional market value from the date of issuance of the notification i.e., 04.02.1984 till the date of award i.e., 23.09.1986 and interest on the enhanced compensation which includes Solatium at 30% and also additional market value, from the date of issuance of the notification i.e., 04.02.1984 at 9% per annum for a period of one year and thereafter at 15% per annum till the payment is made. Accordingly, the appeal suit is disposed of as observed above. No order as to costs. __________________ A.GOPAL REDDY, J ____________________ G.V.SEETHAPATHY, J 22.03.2010 lmv