THE HONOURABLE SRI JUSTICE A.GOPAL REDDY AND THE HONOURABLE SRI JUSTICE RAJA ELANGO A.S.No.342 of 2002 JUDGMENT: (per Hon’ble Sri Justice A.Gopal Reddy) The Special Tahsildar (Land Acquisition), Jangareddygudem, filed this appeal under Section 54 of the Land Acquisition Act, 1894 (for short ‘the Act’) challenging the enhancement of compensation for the acquired land by the Subordinate Judge, Kovvur, in O.P.No.16 of 1988, dated 21.08.1996. The brief facts, which are relevant for disposal of the appeal, are as under: - The Government of Andhra Pradesh acquired an extent of Ac.7-23 cents of dry land belonging to the respondents- claimants situated in various survey numbers of Guruvaigudem Village for formation of Left Main Canal under Yerrakaluva Reservoir by issuing draft notification under Section 4 (1) of the Act, published in gazette on 09.04.1987. Possession of the land was taken earlier to the issuance of notification i.e., on 20.11.1982. The Land Acquisition Officer after completing the due formalities, under award No.12/1988, dated 06.01.1988, fixed the market value of the acquired land at Rs.18,000/- per acre. The claimants not being satisfied with the fixation of the market value by the Land Acquisition Officer sought for reference of the matter under Section 18 of the Act to the civil Court. On receipt of the notice from the Reference Court, the claimants filed claim statements claiming to enhance the compensation for the acquired land at Rs.75,000/- per acre. To substantiate the enhancement of the compensation, on behalf of the claimants, the second claimant got himself examined as P.W-1, apart from examining three more witnesses as P.Ws.2 to 4 and marked Exs.A-1 to A-5. On behalf of the Referring officer, R.W-1 was examined, but no documents were marked. P.W-1 deposed that in the acquired land he used to raise commercial crops like Mirchi, Tobacco, etc., deriving the water from the bore-well and was getting an income of Rs.15,000/- to Rs.20,000/- per acre. He produced Ex.A-1-registered sale deed, dated 24.08.1983, whereunder one Vijayakumar purchased an extent of Ac.0.84 cents of land for R.27,000/- i.e., at Rs.32,000/- per acre. Under Ex.A-2-sale deed, dated 22.07.1987, one M.Sathyanarayana sold land admeasuring Ac.1-50 cents to one Seetharatham of Chakradevarapalli village for Rs.48,950/-. Apart from the same, he produced Ex.A-3-certified copy of the order in O.P.No.104 of 1987 and Ex.A-5-certified copy of the judgment in A.S.No.2500 of 1986 on the file of this Court, whereunder Rs.22,000/- per acre was awarded for the lands acquired therein, which are adjacent to the acquired lands, in the year 1980. P.W-2-the attestor of Ex.A-1-sale deed, deposed that the vendee paid the consideration mentioned in the said document to the vendor in his presence. P.W-3- the attestor of Ex.A-2 deposed that in his presence Seetharathnam paid the sale price of Rs.48,950/- to Satyanarayana. P.W-4-Sarpanch of the Guravaigudem stated that the acquired lands of the claimants are fertile lands and the claimants used to raise commercial crops and get an income of Rs.10,000/- per acre. The Senior Assistant, Unit IV, Jangareddygudem, got himself examined as R.W-1, but no documents were marked. The land covered by Ex.A-1-sale deed, dated 24.08.1983, relates to Taduvai Village accounts. It is an admitted fact that the lands of both the parties connected to Ex.A-1 were acquired in or about the same time. As such, it cannot be treated as a bona fide sale. Apart from that, Ex.A-1 was much prior to the date of issuance of 4(1) notification. The land covered under Ex.A-2- sale deed, dated 30.02.1987, is situated in Chakradevarapalli Village, which is a neighbouring village, was sold at the rate of Rs.32,000/- per acre. The evidence of P.W-2, attestor of Ex.A-1, would go to show that the purchaser has been in possession of the property and as such, it is a bona fide sale transaction. Hence, the sale deed under Ex.A-2 can be taken as comparable sale after allowing certain deduction for the distance between two lands. The lower Court hypothetically assessed the net income from the crops raised by the claimants in the acquired lands and following capitalization method, calculated that for two crops raised by the claimants in the acquired lands, the income would not have been less than Rs.3,000/- and multiplying the same with ‘9’, fixed the market value at Rs.27,000/- per acre, which reflects the market value of the acquired land prevalent as on the date of the issuance of 4(1) notification. When no contra evidence had been adduced by the Land Acquisition Officer, the evidence adduced by the claimants that for the lands acquired in the same village in the year 1980, vide Ex.A-5-certified copy of judgment in A.S.No.2500 of 1986 on the file of this Court, the market value was fixed at Rs.22,000/-per acre can be taken into account. If reasonable escalation at 10% per annum is added, keeping in view the sale transactions, since the acquisition in the present case is after eight years from the date of acquisition of the lands covered under Ex.A-5, the market value of the acquired land works out to Rs.40,000/- per acre. Having regard to the same, the fixation of the market value for the acquired lands at Rs.27,000/- per acre by the Reference Court is far less than the market value reflected in the sale deeds and was arrived at on the basis of the previous award passed by the civil Court and the judgment rendered by this Court in the said A.S. Therefore, we do not see any ground to interfere with the fixation of the market value for the acquired land by the lower Court in the impugned order and accordingly, the same is confirmed. We see sufficient force in the contention advanced by the learned Government Pleader for Appeals, appearing for the appellant, that the starting point for awarding interest is the date of issuance of notification under Section 4(1) of the Act and not from the date of taking possession. Hence, the claimants are entitled to interest only from the date of notification under Section 4(1) of the Act but not anterior to it. In view of the same, the impugned order and decree passed by the lower Court awarding interest from the date of taking possession is set aside and the same is confined only from the date of 4(1) notification i.e., from 09.04.1987. Therefore, the claimants are entitled to interest @ 9% per annum for a period of one year on the enhanced compensation from the date of issuance of 4(1) notification and thereafter, at the rate of 15% per annum till the date of realisation. The claimants are also entitled to solatium @ 30% and additional market value @ 12% per annum on the enhanced compensation and interest on the above as per law declared by Supreme Court in Sunder V. Union of India[1]. The appeal is partly allowed to the extent indicated above. There shall be no order as to costs. _________________________ JUSTICE A.GOPAL REDDY _________________________ JUSTICE RAJA ELANGO 3rd June 2010 dr [1] AIR 2001 SC 3516