Revenue Divisional Officer.Kurnool ... vs M.Ramakrishna Reddy(D) By Lr

2. Respondents were the owners of a sweet lime orchard measuring 4 acres 38 cents situated in Survey No.395/3A and 395/4A in Singanapalle village, Owk Mandal, Kurnool District in Andhra Pradesh. The said lands, alongwith surrounding lands (in all 58 acres 30 cents) were acquired for construction of a percolation tank. Possession was taken on 8.6.1988. However, the preliminary notification under Section 4(1) of the Land Acquisition Act, 1894 ('Act' for short) was issued only on 27.8.1993. The Land Acquisition Officer, by award dated 30.6.1994, offered compensation at the rate of 2 Rs.16,000/- per acre. The reference Court determined the market value of the entire extent of 4 acres 38 guntas as Rs.12,28,500/- by capitalisation of yield method. It awarded the said sum as compensation with additional market value at 12% per annum on such market value from the date of notification under Section 4(1) of the Act till date of award or possession whichever was earlier, 30% solatium on the market value and interest at 9% per annum from date of possession for a period of one year and thereafter at 15% per annum till date of payment on the aggregate of compensation, additional market value and solatium.

4. In the year 1987, the claimants had filed a writ petition for stopping construction of a percolation tank, alleging that there were 350 sweet lime trees in their land and that the construction of the percolation tank would destroy their sweet lime 3 garden. The Land Acquisition Officer submitted a report dated 1.2.1991 to the Collector confirming the existence of 350 sweet lime trees in the claimants land on 8.6.1988 when possession was taken and the destruction of all those trees due to stagnation of water on construction of the percolation tank. They filed a subsequent writ petition (WP 8665/1992) seeking a direction for payment of compensation for the land and 350 sweet lime trees, as they were dispossessed, without there being any acquisition. The High Court of Andhra Pradesh directed the State Government to pay compensation at the earliest in respect of the land and 350 sweet lime trees. It is thereafter that the acquisition proceedings were initiated, by issuing a notification dated 27.8.1993 under Section 4(1) of the Act. The Land Acquisition Officer, while making the award, did not value the land as a sweet lime orchard. He ignored the sweet lime trees in the land and valued it as bare land at Rs.16,000/- per acre (Rs.70,080/- for the entire land). The Reference Court, after referring to the factual background and the evidence, adopted the yield capitalisation method, to arrive at the compensation. It held that the net annual income realised by the respondents was Rs.270/- per sweet lime tree per annum or in all Rs.94,500/- from the entire orchard with 350 trees. It adopted the multiplier of 13 and arrived at the compensation for the acquired land 4 with the sweet lime trees as 94500 x 13 = Rs.12,28,500/- (that is Rs.280,479/45 per acre).

12. In view of the above, this appeal is allowed in part as follows:

(b) The respondents will also be entitled to damages of Rs.4.72,500/- (at the rate of Rs.94,500/- per annum) for use and occupation, for the period between date of dispossession and date of preliminary notification.

(d) The respondents shall be entitled to interest on the amount due under para (b) above, at the rate of 6% per annum from 30.6.1994 (date of award) till date of payment.