HONOURABLE SRI JUSTICE A. GOPAL REDDY AND HONOURABLE SRI JUSTICE RAJA. ELANGO A.S. No. 3412 OF 2000 Dated 1st June, 2010. BETWEEN The Land Acquisition Officer, Nagari, Chittoor District. …Appellant/Referring Officer And Srinivasa Mudali (died) and others ….Respondents/claimants HONOURABLE SRI JUSTICE A. GOPAL REDDY AND HONOURABLE SRI JUSTICE RAJA. ELANGO A.S. No. 3412 OF 2000 JUDGMENT: (Per Hon’ble Sri Justice A. Gopal Reddy) The Land Acquisition Oﬃcer, Nagari, Chittoor District ﬁled this appeal under Section 54 of the Land Acquisition Act, 1894, aggrieved by the enhancement of the compensation made by the learned Senior Civil Judge, Puttur, in the judgment dated 20.12.1999 passed in O.P.No. 4 of 1990. Various extents of lands of the claimants in various Survey numbers of Nagari village were acquired for the purpose of formation of the approach roads. The draft notiﬁcation under Section 4(1) of the Land Acquisition Act was published in the Gazette on 1.5.1982. The Land Acquisition Oﬃcer, after completing the due and necessary formalities envisaged under the Land Acquisition Act, divided the lands acquired into two blocks depending upon their nature and ﬁxed the market value for the lands in Block No.1 at Rs.18,182/- per acre and for the lands in block No.2 at Rs.15,465/- per acre. The claimants received the said compensation under protest and sought for reference to the competent Civil Court for determination of the correct, adequate and reasonable compensation for the acquired lands. On such reference, the Reference Court registered the reference as OP.No.4 of 1990. In order to substantiate their claim for enhancement of compensation, the claimants examined R.Ws.1 to 4 and marked Exs.B.1 to B.6. On the other hand, in order to dislodge the claim of the claimants and to establish the market value ﬁxed and compensation awarded by the Land Acquisition Oﬃcer as adequate, reasonable and suﬃcient, P.W.1 was examined, however, no documentary evidence was marked on his behalf. The Reference Court, on hearing both sides and perusing the material on record, enhanced and ﬁxed the market value of the acquired lands in block No.1 at Rs.23,000/- per acre and the for the lands in Block No.2 at Rs.20,000/- per acre. Aggrieved by the said enhancement, the present appeal is preferred. Heard the learned Counsel on both sides. Perused the material on record. P.W.1 apart from reiterating the contents in the claim statement, deposed in his evidence that the lands acquired are situated in Nagari which itself is a town and the same was designated as Taluk headquarters. In the said town, Oﬃce of the Sub Registrar, District Munsif Court, Government Hospital etc are functioning and Degree college, High Schools, Cinema theatres, Kalyanamandapams, Nationalized Banks, Rice Mills, Flur Mills, Spinning mills, brick industries etc., are also situated. The acquired lands are situated in the almost middle of the town. The evidence brought on record on behalf of the claimants disclose that through B.2-registered sale dated 27.1.1974, house site to an extent of 20 ½ cents in Sy.No. 259/1 was sold for Rs.7,750/-; through Ex.B.3 registered sale dated 23.7.1980, house site in Sy.No. 134/5 was sold at Rs.3,000/-; through Ex.B.4 registered sale deed 15.7.1981, house site admeasuring 20 x 57 feet in Sy.No. 238/4 was sold for Rs.4,000/-; through Ex.B.5 registered sale deed dated 23.11.1981, house site of 20 x 60 feet in Sy.No. 215/2 was sold at Rs.1500/- and through Ex.B.6 registered sale deed dated 23.11.1981, house site admeasuring 20 x 60 feet in Sy.No. 215/2 was sold at Rs.1500/-. However, the learned Reference Oﬃcer rejected the sale deeds at Exs.B.5 and 6 on the ground that the possession of the acquired land was taken on 25.10.1981, i.e. prior to publication of 4(1) notiﬁcation and the aforesaid sale deeds were executed after taking possession and therefore the same cannot form the basis for ﬁxation of the market value of the lands acquired. It is to be seen that the said analogy of the Reference Oﬃcer, in our considered opinion, is not correct. It is immaterial as to whether possession is taken earlier or after the notiﬁcation. The only thing to be taken into consideration is, whether the sale deeds, executed prior to or after the notiﬁcation, forms basis for ﬁxation of the market value as on the date of notiﬁcation. The Reference Court rejected the sale deeds at Ex.B.5 and B.6 on the ground that the same were executed subsequent to the publication of the 4(1) notification. Even if the said sale deed are also taken into consideration, after giving due deductions, the market value of the lands acquired can be ﬁxed at Rs.20,000/- per acre. Having regard to the said fact, and considering the material on record, the ﬁxation of the market value at Rs.23,000/- and Rs.20,000/- per acre for the lands in Block Nos. 1 and 2 respectively is not excessive, and the same is considered to be prevailing as on the date of notification as comparable or representative sales. Having heard the learned Counsel on either side and having gone through the material record, we do not see any ground to interfere with the judgment under appeal. We accordingly dismiss the appeal, conﬁrming the judgment and decree of the Court below. It is fairly well settled that the claimants are entitled to 12% additional market value on the enhanced compensation from the date of notiﬁcation to the date of taking possession or passing of the Award, which ever is earlier. In this case, possession was taken earlier to the publication of the notiﬁcation. Awarding of additional market value from the date of taking possession to the date of award by the Reference Court cannot be sustained. We accordingly, set aside the same and held that the claimants are entitled to enhanced compensation and also 12% additional market value from the date of notiﬁcation to the date of passing the award. The claimants are also entitled to solatium at 30% on the market value and interest at 9% per annum for one year from the date of taking possession and thereafter at 15% per annum till the date of realization. No order as to costs. --------------------------------------- JUSTICE A. GOPAL REDDY ----------------------------------- JUSTICE RAJA ELANGO Date: 01-06-2010. Msnr.