IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD MONDAY, THE FOURTEENTH DAY OF JUNE TWO THOUSAND AND TEN PRESENT THE HON'BLE MR JUSTICE V.ESWARAIAH & THE HON'BLE MR JUSTICE NOUSHAD ALI C.C.C.A. No.66 of 1994 Between: K.C.P.Limited, Vuyyuru, Krishna District Rep.by its Plant Manager ..... APPELLANT/CLAIMANT AND Spl.Deputy Collector, L.A. Unit-I Hyderabad .....RESPONDENT The Court made the following: THE HON'BLE SRI JUSTICE V.ESWARAIAH & THE HON'BLE SRI JUSTICE NOUSHAD ALI C.C.C.A. No.66 of 1994 JUDGMENT: (per Hon’ble Sri Justice V.Eswaraiah) The claimant is the appellant. The respondent is the Land Acquisition Officer. An extent of 258.33 sq.yards forming part of H.No.6-3-551 of Khairatabad, Hyderabad district was acquired for the purpose of widening the road. 2. The undisputed facts are that advance possession of the aforesaid land was taken on 20.07.1982. The Notification under Sec.4(1) and the draft declaration under Sec.6 of the Land Acquisition Act invoking urgency clause for taking advance possession were published on 30.09.1985. After conducting enquiry, an award was passed on 25.09.1987 under Award No.B2/983/83. The Land Acquisition Officer for fixing the market value relied upon five documents, among them four documents relate to the sale transactions in between private parties and the remaining one is in between a private party and Civil Supplies Department under document No.4732, dated 13.09.1983 for an extent of 606.22 sq.yards open land having H.No.6-3-655, situated at Panjagutta for a total amount of Rs.2,72,700/- @ Rs.450/- per sq.yard. But the Land Acquisition Officer discarded the said sale deed and relied upon the sale transaction dated 02.03.1983 for an area of 275.50 sq.yards under which the said property was sold at Rs.33,500/- @ Rs.121.60 ps per sq.yard and accordingly passed the award fixing the market value for the acquired land at Rs.150/- per sq.yard. 3. On protest by the claimant, a reference under Sec.18 of the Land Acquisition Act was made before the First Additional Judge, City Civil Court, Hyderabad. The claimant is claiming market value of the acquired land at Rs.1500/- per sq.yard, relying on the sale transaction entertained between a private party and Civil Supplies Department, whereunder the Government paid Rs.450/- per sq.yard for the property which is not located on the main road. It is stated that the acquired land is situated on the Raj Bhavan main road fetching good market value and therefore, the claimant prayed for enhancement of compensation from Rs.150/- to Rs.1500/-. On the other hand, the Land Acquisition Officer contended that the claimant is not entitled for any enhancement of amount. 4. The Court below on appreciation of oral and documentary evidence available on record, enhanced the compensation from Rs.150/- to Rs.225/-. Aggrieved by the same, the claimant filed this appeal. 5. In support of the case of the claimant, the officer of the claimant organization was examined as PW 1. He stated that the acquired land is forming part of premises bearing No.6-3-551 of Khairtabad and the same was acquired for the purpose of widening the road. The market value of the said property at the time of acquisition is at Rs.1500/- per sq.yard. He stated that the Government acquired the property of 606.22 sq.yards situated in Panjagutta which is located in a bye-lane adjacent to the Civil Supplies Bhavan for construction of Civil Supplies Corporation @ Rs.450/- per sq.yard vide sale deed document No.4732, dated 13.09.1983. PW 1 further stated that the acquired land is having commercial potentiality as it is situated nearby to PWD Chief Engineer’s office and just opposite to Medinova Hospital building, Regional Office of Syndicate Bank and Area Office of Andhra Bank, RTA office, Eenadu office and Navabharat Ferro Alloys Building. The rate of the similar potential property in the said area at the time of notification was Rs.1500/- and above per sq.yard and therefore, it is stated that the claim made by the claimant is just and reasonable. 6. An officer of the respondent department was examined as RW 1 and he stated that the possession of the land was taken in advance on 20.07.1982 and notification was issued on 30.09.1985. The claimant claimed Rs.1500/- per sq.yard. The Land Acquisition Officer taking into consideration of Ex.A4 sale transaction dated 02.03.1983, under which the land measuring 275.00 sq.yards which was situated about 3 ½ furlongs from the acquired land was acquired @ Rs.121.60 ps per sq.yard, and also taking into consideration the lapse of time of 2 ½ years, fixed the rate to the land of the claimant at Rs.150/- per sq.yard. In the cross examination he stated that he did not know as to whether the acquired land is situated in the commercial area. He admitted that the land covered by Ex.A1 is situated beyond the land which was purchased by the Government for construction of Civil Supplies Corporation under Ex.B1 @ Rs.450/- per sq.yard. He stated that he could not say as to whether the civil supplies building is only 200 yards away from the acquired land of the claimant and he also could not say the prevailing market rate in the year 1982. 7. The Court below considered the point as to whether the Land Acquisition Officer fixed the correct market value for the land acquired and whether the claimant is entitled for any enhancement, and enhanced the market value of the acquired land from Rs.150/- to Rs.225/- per sq.yard. The Court below did not assign any reasons for discarding Ex.B1 sale deed relied on by the claimant. However, the Court below observed that the market value as fixed by the Land Acquisition Officer is very low and inadequate and while fixing the market value the potentiality and special adoptability have to be taken into consideration. Accordingly, the Court below answered the reference enhancing the market value from Rs.150/- to Rs.225/-. 8. Heard both the counsel and perused the record. 9. Ex.A5 plan goes to show that admittedly the acquired land is situated on the main road leading from Khairatabad to Panjagutta, whereas the land covered under Ex.B1 sale deed is situated on the bye-lane beyond the back of the Civil Supplies Bhavan. There is every justification to accept and rely on Ex.B1 sale deed for enhancing the compensation. Admittedly, Ex.B1 sale deed is dated 13.09.1983, whereas Sec.4(1) notification is dated 30.9.1985 i.e. after two years of Ex.B1. The land under Ex.B1 which is not situated on the main road was sold at Rs.450/- per sq.yard in the 1982. The land of the claimant which is having commercial potentiality and situated in the main road was acquired only for Rs.150/- per sq.yard which is unjustifiable. The Land Acquisition Officer while fixing the rate to the acquired land of the claimant has not considered the sale transaction under Ex.B1 in right perspective. But having relied upon sale deed of private parties dated 02.03.1983, fixed the market value of the acquired land of the claimant. We are of the opinion that normally in order to avoid the stamp duty and registration charges, the private parties may not show and mention the correct market value of the property in the document. Ex.B1 sale deed which is in between the private party and Government reflects the correct market value. But the Land Acquisition Officer did not consider the said document and has relied on Ex.A1 sale deed in between two private parties. The acquired land is having more commercial potentiality than the land covered under Ex.B1. The Land Acquisition Officer and the Court below ought to have considered Ex.B1 and the potentiality of the acquired land in fixing and enhancing the market value of the acquired land. The Court below without assigning any reasons, simply enhanced the market value of the acquired land from Rs.150/- to Rs.225/-. 10. For the foregoing reasons, we are of the opinion that the claimant is entitled for enhancement of compensation and also entitled for about 10% escalation over and above the market value covered under Ex.B1 sale deed. Therefore, we deem it appropriate to enhance the market value to the acquired land of the claimant from Rs.225/- to Rs.500/- (Rupees five hundred only) per sq.yard. It is needless to say that the claimant is entitled to all the statutory benefits on the enhanced market value. The claimant is also entitled to all other benefits as awarded by the Court below on the enhanced compensation from the date of Sec.4(1) notification. 11. The CCCA is accordingly allowed to the extent as indicated above. No order as to costs. ___________________ V.ESWARAIAH,J ___________________ NOUSHAD ALI,J Dated: 14.06.2010 Dsr