HON’BLE SRI JUSTICE A.GOPAL REDDY AND HON’BLE SRI JUSTICE RAJA ELANGO DT. 2-6--2010 AS No.56/2002 The Revenue Divisional Officer (LAO), Miryalaguda …Appellant V. 1. R. Muthaiah (Died) his LRS R-25 and R-26 and others.. ..Respondents The Court made the following: HON’BLE SRI JUSTICE A.GOPAL REDDY AND HON’BLE SRI JUSTICE RAJA ELANGO AS No. 56/2002 JUDGMENT: (Per the Hon’ble Sri Justice A. Gopal Reddy) This appeal under Section 54 of the Land Acquisition Act, 1894 (for short “the Act”) by the Revenue Divisional Officer (Land Acquisition Officer), Nalgonda, is filed questioning the enhancement of compensation made by Senior Civil Judge, Nalgonda in OP No.43/1997 dt. 17-11-2000. On the requisition made by the Executive Engineer, Irrigation and Command Area Development (IB), Nalgonda, an extent of Ac.35-35 guntas of land in S.Nos.139, 140,141,143 to 148,166, 167, 170 to 175, 188 and 189 was acquired by issuing Section Sec. 4(1) notification on 7-9-1992. The possession of the land was taken on 28-11-1988 itself. The Lad Acquisition Officer after complying with due formalities passed an award on 2-12-1995 fixing the market value at Rs.6000/- per acre and awarded 30% solatium on the market value; 6% interest on the notional market value plus 15% solatium from the date of taking possession till the date of notification and 9% interest on the market value plus solatium from the date of 4(1) notification for one year and thereafter at 15%. The claimants on receipt of the compensation awarded by the Land Acquisition Officer under protest filed necessary applications to refer the matter to the Civil Court under Section 18 of the Ac for enhancement of the compensation. On reference being made to the Civil Court, the second claimant filed claim statement, which was adopted by all the remaining claimants claiming compensation at Rs.60,000/- per acre with all statutory benefits. In order to prove the market value of the acquired land, the claimants examined P.Ws.1 to 5 and marked Exs.A-1 toA-3. Exs.A-1 to A-3 are the original sale deeds dt. 28-5-1992; 19-6-1989 and 19-9-1997 respectively. On behalf of the referring officer, no evidence, either oral or documentary, has been adduced. The reference court after considering the evidence adduced by the parties, by the impugned award, fixed the market value of the acquired land at Rs.12,000/- per acre; and also awarded 30% solatium on the enhanced compensation and 12% additional market value per annum from the date of taking possession to the date of award, 9% interest on the enhanced market value for the first one year and thereafter at 15% per annum till the date of payment. Learned Government Pleader for Appeals submits that enhancement made by the reference court is 100% over and above the amount as awarded by the Land Acquisition Officer and Exs.A-1 and A-2 are brought into existence to claim higher compensation and after taking possession of the property the same cannot form the basis for determination of the compensation. He further contends that the claimants are not entitled to additional market value from the date of taking possession as awarded by the reference court. Sri D.Goverdhana Chari, leaned counsel for the respondents-claimants contends that all the claimants are owning less than one acre of land each and are small farmers and are deprived of their income from the land as it was taken prior to issuance of 4(1) notification, and therefore, they are entitled to interest from the date of taking possession for the crop loss. He further contends that the claimants, in fact, are entitled to compensation at Rs.15,000/- per acre, but due to poverty, they could not file cross appeals by paying necessary court fee, and therefore enhancement made by the reference court do not call for any interference. In the light of the above submissions, the points that arise for our consideration are: 1. What is the true market value, the claimants are entitled to? 2. Awarding interest is whether from the date of notification or from the date of taking possession? P.W.1 who is the 2nd claimant and P.W.2 who is the 7th claimant in their evidence categorically deposed that the acquired lands were fertile and block soil in nature and they were cultivating it for cotton crops and they used to get a net income of Rs.20,000/- to Rs.30,000/-. P.W.3 is an independent witness. She deposed that herself and her sisters purchased Ac.4-00 cents of land for a consideration of Rs.15,000/- per acre on 28-5-1992, under sale deed (Ex.A1). She further deposed that they were cultivating the same for cotton, chillies and other commercial crops and getting a net income of Rs.20,000/- per acre depending upon the market prices of the produce. The acquired land and the land purchased by P.W.3 and her sisters covered under Ex.A-1 are separated by one filed and all these lands are block soil in nature. P.W.4 sold Ac.1- 00 of land in S.No.62 of Kothapally village to one Megavath Panya in 1989 for a consideration of Rs.10,000/- under Ex.A-2 sale deed dt.19-6-1989. The land covered under Ex.A-2 is at a distance of 50 yards away from the acquired land; and the land covered under Ex.A-2 and the acquired land are similar in nature and fertility. P.W.5 purchased Ac.1-04 guntas inS.Nos.15 and 16 for a consideration of Rs.1,00,000/- under a sale deed dt.19-9-1997 (Ex.A-3), which is a post-notification sale ie., after passing the award dt. 2-12-1995. Sale covered under Ex.A-3 was effected five years prior to issuance of 4(1) notification, which shows the increase of the prices of the lands near the vicinity of the acquired land. The reference court without any basis presumed that Ex.A-1 sale deed was brought into existence on coming to know about the acquisition of land, where possession of the land was taken on 28-11-1988. Under Ex.A-2 P.W.2 sold Ac.1-00 of land on 19-6-1989 for a consideration of Rs.10,000/- ie., three years prior to issuance of notification. If 10% escalation is added to the price reflected under Ex.A-2 sale deed, the market value comes to Rs.13000/- per acre, whereas the reference court only awarded Rs.12,000/- per acre. In the absence of any cross appeal filed by the claimants, we have no option but to confirm the compensation awarded by the reference court at Rs.12,000/- per acre. Learned Government Pleader rightly contended that the claimants are entitled to additional market value and interest from the date of notification and therefore, they are not entitled to interest on additional market value from the date of taking possession. The claimants are entitled to 12% additional market value on the enhanced compensation from the date of notification ie., 7-9-1992 till the date of award and interest on the enhanced compensation including 30% solatium and additional market value at 9% per annum from the date of notification for a period of one year and thereafter at 15% per annum as per the law declared by the Supreme Court in Sunder v. Union of India[1]. The impugned award and decree shall stand modified in the above terms. The appeal is accordingly allowed in part. There shall be no order as to costs. ___________________ A. GOPAL REDDY, J ________________ RAJA ELANGO,J Date:-2-6-2010 kmr . [1] AIR 2001 SC 3516