HON’BLE SRI JUSTICE V.ESWARAIAH AND HON’BLE SRI JUSTICE NOUSHAD ALI A.S.NO.1971 OF 1999 Dt.8.9.2010 Between: The Land Acquisition Officer/ Special Dy. Collector (LA) IPT & Rlys., Khammam ..Appellant And B.Srihari Reddy ..Respondent HON’BLE SRI JUSTICE V.ESWARAIAH AND HON’BLE SRI JUSTICE NOUSHAD ALI A.S.NO.1971 OF 1999 JUDGMENT: (Per Sri Justice V.Eswaraiah) Heard. This appeal is directed against the order in O.P.No.313 of 1989 on the file of the Subordinate Judge, Sathupalli, dated 10.6.1994, for enhancing the compensation from Rs.4,500/- per acre to Rs.15,000/- per acre for K.H.T land situated at Kandukuru village for the purpose of excavation of channel under Thumburu Ayacut by the Reference Court. The lands of the respondent claimant and others to an extent of Ac.27.05 ½ guntas situated in Kandukur village in Vamsoor Mandal, Khammam District, were acquired for the purpose of excavation of the channel under Thumburu anicut pursuant to the notification issued under Section 4(1) of the Land Acquisition Act published on 13.2.1986 and award was passed on 4.3.1987. The Land Acquisition Officer has awarded compensation at the rate of Rs.4,000/- per acre for dry land and Rs.4,500/- for KHT lands under the acquisition. In the instant case, the claimant is claiming compensation at Rs.30,000/- per acre and on reference, the Reference Court granted Rs.15,000/- per acre basing on oral evidence of P.Ws.1 and 2 adduced on behalf of the claimant and Ex.A-1 registered sale deed dated 25.10.1977 for the sale of Ac.0.22 guntas for Rs.9,000/- which works out to Rs.15,000/- per acre. The Reference Court relied on Ex.A-1 sale deed and fixed the compensation at Rs.15,000/- per acre. Ex.A-1 sale transaction is nine years prior to 4(1) notification and therefore it cannot be said that Ex.A-1 sale deed is not relevant. We are of the opinion that the compensation fixed at the rate of Rs.15,000/- per acre in respect of the lands acquired pursuant to 4(1) notification on 13.2.1986 is not excessive. However, the possession of the lands is said to have been taken on 6.2.1977 i.e., prior to the date of publication of the draft notification. The Reference Court held that the respondent-claimant is entitled to interest on the compensation at the rate of 9% per annum for one year from the date of taking possession and thereafter at the rate of 15% per annum till the date of payment on the enhanced market value and solatium. Learned Government Pleader appearing for the appellant relying on the judgment of the Apex Court reported in R.L.Jain v. DDA[1] and submits that possession of the land was taken prior to the date of notification under Section 4(1) of the Act and therefore the claimant is entitled for interest from the date of issuance of the draft notification under Section 4(1) of the Act. Having regard to the facts and circumstances of the case, the judgment and decree of the Reference Court with regard to the quantum of compensation at the rate of Rs.15,000/- per acre and other statutory benefits is confirmed. But, in so far as the rate of interest is concerned, the judgment and decree of the Reference Court stands modified holding that the claimant is entitled to interest from the date of draft notification under Section 4(1) of the Act i.e., from 13.2.1986 only. The appeal is accordingly disposed of. No order as to costs. _________________ V.ESWARAIAH, J. _________________ NOUSHAD ALI, J. 8.9.2010 kpr [1] (2004) 4 SCC 79