HON’BLE SRI JUSTICE A.GOPAL REDDY AND HON’BLE SRI JUSTICE B.CHANDRA KUMAR L.A.A.S.No.156 of 2008 JUDGMENT: - (Per Hon’ble Sri Justice A.Gopal reddy) This is an appeal filed by the Special Deputy Collector, L.A.Unit, Priyadarshini Jurala Project (for short, “PJP”), Gadwal under Section 54 of the Land Acquisition Act, 1989 (for brevity, “the Act”) challenging the enhancement of the compensation made by the Senior Civil Judge, Gadwal in O.P.No.40 of 2005 dated 20.08.2007. The brief facts of the case in nutshell are that an extent of Ac.5-17 guntas of dry land and Ac.19-02 guntas of irrigable dry land of Arepalli village were acquired for the purpose of canal Distribution and Canal Main works from K.M. 2.025 to KM 3.625 of 16R + 17R minor on D/6 and CD & CM Works from KM 0.000 to KM 2,000 16 + 17R minor on D/6 of PJP. The land acquisition Officer after complying the formalities, by his award No.43 of 2002 dated 05.10.2002 fixed the market value of the dry land at Rs.30,300/- per acre and for irrigable dry lands at Rs.34,500/- per acre. Dissatisfied with the fixation of the compensation, claimants sought for a reference and on reference being made, the claimants appeared and claimed compensation at Rs.80,000/- per acre for dry lands and Rs.1,00,000/- per acre for wet lands. To prove the market value, the claimants examined P.Ws.1 to 3 and marked Ex.A1 – common order passed in O.P.No.42 of 1990 and batch, Ex.A2 - common order passed in A.S.No.1447 to 1474 of 1994 and Ex.A3 – common order in O.P.No.46 of 2004. On behalf of the Land Acquisition Officer, she herself was examined as R.W.1 and marked Ex.B1. The reference court after taking into consideration the earlier award passed by it, with regard to the acquisition of lands in the year 1989 situated at the adjacent village--Medipally, whereunder the market value was fixed at Rs.30,000/- per acre, which was affirmed by this Court in A.S.No.1447 to 1474 of 1994 dated 08.06.1996, took the same as base year and in view of alround development and the water has been released from the Jurala project on construction of the canals, by giving 10% p.a. escalation for 10 years, fixed the market value of the acquired land at Rs.50,000/- per acre. The learned Government Pleader strenuously contends that in the absence of any evidence adduced by the claimants, giving escalation of 10% per annum for 10 years is not justified, but fairly concedes that the land value in the surrounding area has enormously gone up due to the availability of water on completion of the Jurala Project. As seen from the evidence, P.W.2 stated that the lands under acquisition are more fertile and more valuable than the lands covered under Exs.A1 and A2 and he denied the suggestion that the lands under acquisition and the lands covered by Exs.A1 and A2 are not similar in nature. Whereas P.W.3 stated that the lands situated at Motlampally village were acquired in respect of which the reference court enhanced the market value to Rs.60,000/- per acre. It is relevant to mention herein that today we have confirmed the fixation of the market value at Rs.60,000/- per acre for the lands covered by Thumpally village of Atmakur Mandal in L.A.A.S.No.928 of 2007 and L.A.A.S.No.976 of 2007. It is well settled that giving escalation of 10% per annum for every subsequent year from the base year is neither excessive nor unreasonable as held by the Supreme Court in SPECIAL LAND ACQUISITION OFFICER v. MOHD. HANIF SAHIB BAWA SAHIB[1]. It is the duty of the Court to take judicial notice about the raise in prices after the acquisition. (See Harbans Lal v. Union of India AIR 1974 SC 600). Having regard to the fact that the evidence adduced by both the claimants before the reference Court clearly shows that the lands are acquired for the purpose of excavation of forming embankment of left main canal, which itself shows that the water available for cultivation from Jurala Project was distributed through the left bank main canal on the date when the lands were acquired and raising wet crops by drawing water from Krishna River, the method adopted by the lower Court in giving escalation at 10% p.a. for the subsequent years by taking 1989 as the base year, where this Court confirmed the fixation of the market value at Rs.30,000/- per acre for the very same lands and fixing the market value at Rs.50,000/- per acre for the acquired land is just and reasonable and no error of any principle of law by the reference court, warranting interference. Accordingly, the appeal is dismissed. No order as to costs. _____________________ A.GOPAL REDDY, J. ________________________ B.CHANDRA KUMAR, J. 29th July, 2009 LMV [1] 2002(3) SCC 688