THE HON'BLE SRI JUSTICE A.GOPAL REDDY and THE HON'BLE SRI JUSTICE RAJA ELANGO A.S.No.3178 OF 2000 ORDER: (per Hon’ble Sri Justice A. Gopal Reddy) This appeal, under Section 54 of the Land Acquisition Act, 1894 (for short ‘the Act’) is preferred by the Mandal Revenue Officer/Land Acquisition Officer, Veenavanka, questioning the enhancement of compensation made by the Senior Civil Judge, Huzurabad, in O.P.No.61 of 1996 dated 12.04.2000, whereby the learned Judge answered the reference made under Section 18 of the Act in favour of the claimants. An extent of Ac.10.05 guntas of land belonging to the claimants situated at Veenavanka village and Mandal Head quarters of Karimnagar was acquired by the Government for providing house sites to the weaker sections, by issuing notification under Section 4(1) of the Act and draft declaration under Section 6 of the Act simultaneously, dated 29.04.1986, whereas possession of the land was taken on 27.02.1987. Since the award could not be passed within two years, the said notification was lapsed. Therefore, the fresh notification and draft declaration submitted by the District Collector, were approved on 5.11.1990 and were published in the District Gazette on 6.11.1990 dispensing with enquiry under Section 5-A of the Act. The Land Acquisition Officer passed Award No.B/2376/85 dated 17.11.1992 fixing the market value of the acquired land at Rs.5600/- per acre as against the claim of the claimants at Rs.50,000/- per acre. The claimants having not satisfied with the fixation of market value, sought for reference under Section 18 of the Act for due determination of compensation. On receipt of reference, the reference Court numbered it as O.P.No.131 of 1993 on the file of the Subordinate Judge Karimnagar, and issued necessary notice to the claimants. Later the said O.P. was transferred to the Court of Senior Civil Judge, Huzurabad, and renumbered as O.P.No.61 of 1996. The fourth claimant filed claim statement, which was adopted by claimant Nos.1 to 3, claiming compensation of Rs.80,000/- per acre contending that the acquired lands are situated on main road leading from Veenavanka to Karimnagar; that the acquired lands are highly potential and near to the acquired lands there exist Zilla Parishad High School, police station, primary health center, telephone exchange and all other Mandal offices; that they used to raise commercial crops like chillies, ground nut etc., and get a net annual income of Rs.10,000/- per acre; and that the Land Acquisition Officer in the preliminary revaluation statement sent proposal in the year 1985 to approve the market value at Rs.25,000/- per acre, but on the date of issuance of notification the market value is more than Rs.60,000/- per acre, and hence, they are entitled to the market value of Rs.80,000/- per acre. In order to prove the market value of the acquired land, the claimants examined PWs.1 to 4 and marked Exs.A.1 to A.8. On behalf of the Referring Officer, the Superintendent in the office of Mandal Revenue Officer, Veenavanka was examined as RW.1 and marked Exs.B.1 and B.2-Award and Award proceedings. The third claimant, who was examined as PW.1, deposed that the acquired lands are situated in the main center of Veenavanka village, which is a Mandal Headquarter, and Zilla Parishad High School, Primary Health Centre, Telphone Exchange, Veterinary hospital, Police Station, APSEB Sub Station and all other Mandal offices are situated nearer to the acquired lands; that adjacent to the acquired lands there exist Saw-mill and Oil-mill and Jammikunta Market yard was at a distance of 12 Kms from the acquired lands; that the acquired lands were under the Ayacut of Kalvala Project and became command area of S.R.S.P. Project; that the acquired lands are fertile lands and also useful for house sites and mills; and that the sale deeds under Ex.A.1 and A.3, which are a part of the same survey number of the acquired lands, were sold at Rs.25/- per sq. yard, which works out to Rs.1,21,000/- per acre. PW.2, who is the vendee of Ex.A.1-sale deed, deposed that under Ex.A.1 he purchased land to an extent of 472 sq. yards in S.No.1287 situated at Veenavanka proper from Orem Kanakaiah and Arjaiah for a consideration of Rs.11,800/-; that adjacent to the acquired lands there are saw-mill, Primay Health Centre, Sishumandir School and Government High School; that PW.1 used to raise commercial crops in his land being irrigated by Kalvala Project; and that he purchased the lands three years prior to the date of execution of Ex.A.1 but the sale deed was executed after three years i.e. on 2.08.1988. In his cross-examination, he admitted that the acquired lands are part and parcel of S.No.1287, within which he purchased 472 sq. yards under Ex.A.1, and Saw-mill was already installed prior to his purchase of land under Ex.A.1. PW.3, who is one of the attestor under Ex.A.1, corroborated the evidence of PW.2 with regard to vendee paying sale consideration to the vendor in his presence in the year 1985 and at that time simple sale deed was executed. He also deposed that the lands exhibited under Ex.A.1 are adjacent to the acquired lands and part of the same survey number where commercial establishments were established as deposed by PW.1. Claimant No.6, who is the legal representative of Claimant No.1, was examined as PW.4. He corroborated the evidence of PWs.1 to 3 with regard to the location, potentiality and existence of bus-stand and commercial establishments adjoining the acquired lands. He deposed that Police Station was situated just 200 yards, Andhra bank at a distance of 300 yards, and the M.R.O. Office at a distance of 300 yards away from the acquired land, and prior to the acquisition, they used to get annual income of Rs.30,000/- per acre. The valuation certificates issued by the Sub-Registrar, Huzurabad were marked as Exs.A.6 to A.8 to rebut the above evidence. RW.1, who was examined on behalf of the Referring Officer, admitted in his cross-examination that under Ex.B.3-combined map of Veenavanka village and Mandal, the then Land Acquisition Officer proposed sale document No.93, dated 28.01.1985 wherein the sale consideration was Rs.25,000/- per acre, but the same was not approved by the Joint Collector. He further admitted that Mandals were formed on 25.05.1985 i.e., two years prior to the date of taking possession of the acquired land and 7 ½ years prior to the date of passing of award under reference. From the above evidence, it is evident that RW.1 himself admitted that under Ex.B.3-combined map the then Land Acquisition Officer adopted the sale deed of the land situated on Northern side of the acquired lands, which was away from the village, whereas the lands covered under Exs.A.1 and A.2, are adjoining the acquired lands and situated in between the village and the lands under acquisition. The transaction covered by Ex.A.1 is part and parcel of the acquired land in S.No.1287. Nothing was elicited from the evidence of PW.2 to discard his testimony or the above sale transaction was brought into existence with the connivance of the claimants for claiming higher compensation. Further, no reasons were assigned by the Land Acquisition Officer for discarding the sale transactions under Exs.A.1 to A.3. When the lands covered by Ex.A.1, which are part and parcel of the same survey number, were sold at Rs.25/- per sq. yard two years prior to the issuance of notification, the same can be taken as comparable sale for fixation of market value, after giving necessary deductions since the land covered by the sale transaction is only 472 sq. yards whereas the lands acquired are Ac.10.05 gts. Even if 50% is deducted, the market value comes to Rs.60,500/- per acre as on the date of execution of sale deed. If two years escalation is added for the same, the market value will be more than Rs.75,000/- per acre as awarded by the reference Court. Further, when the Land Acquisition Officer himself sent pre-valuation report to the Joint Collector in the year 1985 proposing the market value for the acquired lands at Rs.25,000/- per acre, it is common knowledge that the prices of the lands will raise up abnormally due to the development taken place on creation of Mandal Head-Quarter. No reasons were assigned by the Land Acquisition Officer or no evidence has been adduced by him in support of the award fixing the compensation at Rs.5,600/- per acre when his predecessor proposed the market value at Rs.25,000/- per acre as admitted by RW.1. This Court in Revenue Divisional Officer (LAO), Karimnagar v. M. Krishna Reddy[1] enhanced the compensation taking into consideration the pre valuation report submitted by the Land Acquisition Officer and the same has been confirmed by the Supreme Court dismissing the Special Leave Petition filed by the Government in S.L.P.(Civil).No.11935, 11936 of 2007 dated 10.12.2007. In view of the principles laid down by this Court in the above judgment, we are of the view that the fixation of market value by the Land Acquisition Officer in his award is not justified, when the claimants successfully demonstrated that the market value prevalent as on the date of issuance of notification is more than Rs.1,21,000/- per acre. The lower Court after giving necessary deductions rightly fixed the market value at Rs.75,000/- per acre, which is reasonable market value for which the claimants are entitled to. Therefore, we do not see any merit in the appeal Accordingly, the Appeal is dismissed. _____________________ (A.GOPAL REDDY, J.) _______________ (RAJA ELANGO, J.) 1st June, 2010 Js. [1] 2007 (3) ALD 332