THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE SANJAY KUMAR L.A.A.S.NO.755 OF 2005 DATED 18TH JANUARY, 2011 BETWEEN: Devineni Mohan and Others. … Appellants a n d The Revenue Divisional Officer, (L.A.O.), Anantapur. … Respondent THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE SANJAY KUMAR L.A.A.S.NO.755 OF 2005 J U D G M E N T (Per Sri Justice Sanjay Kumar) An appeal by the claimants in O.P.No.130 of 1998 on the file of the reference Court of the learned Principal Senior Civil Judge, Anantapur, aggrieved by the Order and Decree dated 25.02.2005 passed therein. By the said Order and Decree, the reference Court enhanced the market value of the acquired land from Rs.18,000/- per acre to Rs.27,000/- per acre and granted interest only on the aggregate of the enhanced market value, solatium and additional market value. An extent of Ac.1.29 cents of land in Survey No.262-A3 of Raketla Village of Anantapur District belonging to the claimants was acquired for the purpose of providing house sites to weaker sections. The notification under Section 4(1) of the Land Acquisition Act, 1894 (for brevity, ‘the Act of 1894’) in this regard was published on 20.02.1996. After due enquiry, the Land Acquisition Officer-cum-Revenue Divisional Officer, Anantapur, fixed the market value of the acquired land at Rs.18,000/- per acre. Dissatisfied therewith, the claimants sought reference under Section 18 of the Act of 1894. They claimed that the market value of the land should have been determined at Rs.50,000/- per acre. Reliance in this regard was placed on Ex.A.1 sale deed dated 19.01.1989 and Ex.A.2 Award dated 20.05.1998. Two witnesses were examined by the claimants while the State examined the Revenue Divisional Officer, Anantapur, as R.W.1 and marked two documents. Ex.A.1 sale deed pertained to an extent of 60 square yards of open site which was sold at the rate of Rs.115/- per square yard putting the market value at Rs.5,52,000/- per acre. This land was situated within the Panchayat limits. The reference Court was disinclined to place reliance upon this document as the land sold thereby was situated within the Gram Panchayat area and it was a solitary sale. Further, as the acquired land was agricultural land, no parity could be drawn between the same and the small extent of 60 square yards, presumably a house site, covered by Ex.A.1. This Court therefore finds no error on the part of the reference Court in eschewing Ex.A.1 from consideration. The reference Court, on the basis of the evidence adduced, found that the acquired land had potential for being used as house sites. In so far as the determination of its market value was concerned, the reference Court placed reliance on Ex.A.2 Award which pertained to land acquired on the northern side of the Village. The reference Court found that the subject acquired land was adjacent to the B.C. Colony, which neighboured the acquired land under Ex.A.2. As both these lands were adjacent to the B.C. Colony, the reference Court was of the opinion that the market value fixed under Ex.A.2 was of relevance. As the acquisition under Ex.A.2 was subsequent in point of time to the subject acquisition, the reference Court effected reduction of the market value determined therein by 10% and fixed the value at Rs.27,000/- per acre. The reference Court allowed solatium and additional market value on the enhanced market value as determined by it. However, interest was awarded only on the aggregate of the enhanced market value, solatium and additional market value at 9% for one year and thereafter at 15% per annum. No interest was awarded upon the amounts other than the market value awarded by the Land Acquisition Officer, though claimed before the reference Court. Smt.A.Chayadevi, learned counsel for the appellants/claimants, contended that the reference Court ought to have enhanced the market value of the acquired land to Rs.1,50,000/- per acre. She further contended that the reference Court erred in restricting the interest entitlement of the claimants only to the enhanced compensation. The material placed on record by the claimants does not support their claim of a market value of Rs.1,50,000/- per acre. Ex.A.1, being a sale pertaining to a very small extent of 60 square yards situated within the Gram Panchayat limits, could not be taken as guidance for determining the market value of the acquired agricultural land admeasuring Ac.1.29 cents. We therefore cannot accept the contention of the learned counsel that this document should be taken into account for the purpose of enhancing the market value. The reference Court rightly placed reliance upon Ex.A.2 Award and was guided by it in determining the market value. We find no reason to interfere in so far as this determination of market value is concerned. However, the reference Court erred in restricting the interest entitlement of the claimants. The Land Acquisition Officer appears to have awarded interest only on the market value determined by him and excluded the solatium and additional market value due and payable under the Act of 1894. In the light of the authoritative pronouncement of a Constitution Bench of the Supreme Court in SUNDER V/s. UNION OF INDIA[1], solatium and additional market value form an integral part of the ‘compensation’ and interest would be payable thereon also in addition to the market value. The appellants would therefore be entitled to interest as per the Act of 1894 not only upon the enhanced amounts awarded by the reference Court but also the amount of the compensation determined by the Land Acquisition Officer. Subject to the above modification, the Order and Decree under appeal are confirmed. The Appeal is accordingly allowed in part to the extent indicated above. There shall be no order as to costs. ------------------------------ GODA RAGHURAM,J -------------------------- SANJAY KUMAR,J 18TH JANUARY, 2011. PGS [1] (2001) 7 SCC 211