THE HON’BLE SRI JUSTICE V. ESWARAIAH AND THE HON’BLE SRI JUSTICE NOUSHAD ALI A.S.No.331 of 1998 JUDGMENT: (per the Hon’ble Sri Justice V. Eswaraiah) The Land Acquisition Officer/Mandal Revenue Officer, Ravikamatham Mandal, Visakapatnam District, is the appellant. The respondents herein are the claimants, whose lands situated in Dondapudi Village, Ravikamatham Mandal, Visakhapatnam District, were acquired pursuant to the notification issued under Section 4 (1) of the Land Acquisition Act (for short “the Act”), dated 08-03-1986. The Land Acquisition Officer passed an award on 07-12- 1987 fixing the compensation @ Rs.6,000/- per acre. Not satisfied with the rate fixed by the Land Acquisition Officer, the respondents-claimants sought for reference to the Civil Court under Section 18 of the Act. Accordingly, the matter was referred to the Civil Court and the learned Subordinate Judge, Chodavaram, by his order, dated 26-06-1997, in O.P.No.52 of 1988, enhanced the compensation from Rs.6,000/- to Rs.20,000/- per acre. Aggrieved thereby, the present appeal is filed. The respondents-claimants filed the claim statement contending that the land acquired is admittedly for the purpose of house sites, as the said land was potential for house sites and, therefore, the authorities after making necessary enquiry satisfied that the land is fit for house sites and acquired the same for the purpose of house sites only. It is stated that Dondapudi village, where the land is situated, is a very reputed business place having rice mills, saw mills, handloom cottage industry and Adda leaves cottage industry. It is stated that they are cultivating commercial crops in the said agricultural land and their net income was between 8,000/- and 10,000/- per acre and the value of the land was Rs.20/- per sq. yard or Rs.40,000/- per acre and accordingly, they have claimed compensation @ Rs.20/- per sq. yard or at Rs.40,000/- per acre. To substantiate the claim of the claimants, the 5th claimant was examined as PW.1, the 1st claimant was examined as PW.2 and one Sri Injarapu Sanyasi Rao, who is the brother of the 2nd claimant, was examined as PW.3 and marked Ex.A-1 sale deed, dated 14-07-1986, in respect of the sale transaction transferring the land of 12 or 13 cents for Rs.2,500/-, which comes to Rs.31,500/- per acre and Ex.A-2 sale deed executed by PW.4. As per Ex.A-2 Sale Deed, dated 31-05-1985, PW.4 sold an extent of 13 cents of land in Sy.No.251/4 for Rs.2,500/-. PW.5, who is a resident of Dondapudi Village, was examined to prove that he had sold 6 cents of land for Rs.2,000/- . We are of the opinion that the court below had rightly refused to rely upon Ex.A-1 Sale Deed, as Ex.A-1 Sale Deed is subsequent to 4(1) Notification. Insofar as Ex.A-2-Sale Deed is concerned, it is prior to 4(1) notification. But, the Court below has not taken the same into consideration on the ground that the land covered under Ex.A-2 cannot be compared with that of the land acquired for the purpose of house sites. Admittedly, the land sold under Ex.A-2 is used for residential as well as commercial purpose, whereas the lands of the claimants are also acquired for the purpose of house sites. It is the case of the claimants that, as deposed by them unilaterally, they are cultivating the said land by growing commercial crops such as Groundnuts, Sugarcane, Gingelly and though they are agricultural lands, the lands are situated in a reputed place and are fit for house sites and, therefore, they have acquired valuable lands, which were surrounded by residential colonies. Insofar as Ex.A-2 is concerned, the vendor of the sale deed was examined as PW.4 and stated that the acquired land and the land sold by him would be equivalent to the distance between court house and the road passing in front of it. It is to be noted that the lands in question are acquired for the purpose of providing house sites, whereas the land under Ex.A2 is sold for residential as well as commercial purpose. Therefore, we are of the opinion that the trial Court has rightly not taken into consideration Ex.A2. However, taking into consideration the proved potentiality of the acquired lands for developing into house sites, in view of the pre-existence of the residential colonies on all sides, we are of the opinion that the trial court had rightly considered the matter and fixed the market rate @ Rs.200/- per one cent i.e., Rs.20,000/- per acre and also deducted ¼th extent of the acquired land for the developmental purpose, as the lands are acquired for the purpose of house sites. Therefore, we do not find any merit in the appeal and the same is liable to be dismissed. Accordingly, the appeal is dismissed. There shall be no order as to costs. ________________ V.ESWARAIAH, J _______________ NOUSHAD ALI, J Date: 14-06-2010 Prv