K.Devakimma And Ors vs Tirumala Tirupati Devasthanams And Anr

4. In order to appreciate the controversy involved in these appeals, it is necessary to state the relevant facts infra. For the sake of convenience, we shall first advert to the factual matrix of C.A. No. 5769 of 2006 (P. Sreenivassulu Naidu vs. The Special Deputy Collector, Land Acquisition Officer, TTD, Tirupathi & Anr.)

5. The appellant in C.A. No.5769 of 2006 is the owner of the land measuring 4176 square feet as per the State whereas 5220 square feet as per the appellant. This land is situated in T.S. No 40/2 Ward No.3, Block E in village Tirumala. Likewise, the appellants in other two appeals are also owners of the similar land as described in the memo of appeals. The appellants were having their small shops and hutments on their land wherein they used to carry on their small business for their livelihood.

7. In other appeals, similar notifications under Section 4 were issued by the State on 19.06.1985, 23.12.1985, 26.05.1986, 29.08.1986, 25.05.1987, 05.08.1987, 21.08.1989 and 26.10.1992 for accomplishing the same public purpose. By these notifications, a large chunk of land was acquired in the same area where the land of the appellant in C.A. 5769 of 2006 was situated. So far as the land belonging to the present appellants was concerned, it was of small dimension.

9. This led to initiation of the proceedings for determination of compensation payable to each landowner including that of the appellants herein by the Land Acquisition Officer (in short 'the LAO’). Notices under Section 9 of the Act were issued to the appellants calling upon them to participate in the land acquisition proceedings to enable the LAO to determine the fair market value of the land on the date of acquisition as provided under Section 23 of the Act so that compensation would be paid to the landowners at such determined rate. Accordingly, the LAO held an enquiry and after affording an opportunity to the appellants herein passed an award on 12.03.1991 and also on different dates as mentioned in the memo of appeals fixing the market value of the acquired land at Rs.11/- per square feet. So far as the structure built by the appellant in C.A. No. 5769 of 2006 on the land in question was concerned, it was valued at Rs.45,936/-. The LAO, therefore, fixed Rs.11/- per square feet as the uniform rate for awarding compensation for the land to all the landowners. So far as the compensation for built-up structure on the land of individual landowners was concerned, it varied in cases of individual landowner and was accordingly calculated on the basis of extent and quality of construction made by each landowner. The appellants were, accordingly, paid the compensation for their land and super-structure standing on their land in addition to other statutory compensation such as solatium, interest etc. payable under the Act.

10. Feeling aggrieved by the award, the appellants in all the appeals sought reference to the Civil Court under Section 18 of the Act for re- determination of the compensation made by the LAO. The reference Court, on the basis of the evidence adduced, partly answered the reference in favour of the appellants by award dated 15.07.2002 and accordingly enhanced the rate of the compensation from Rs.11/- per Square feet to Rs.86/- per square feet. In other words, the reference Court held that the appellant was entitled to get compensation for his land at the rate of Rs.86/- per square feet being the fair market value of his land on the date of notification issued under Section 4 of the Act. In other two appeals, the reference Court by awards passed on different dates enhanced the compensation and fixed it between Rs.80/- to Rs.100/- per square feet.

11. Challenging the legality and correctness of the awards of the Reference Court, the TTD, for whose benefit the land was acquired, filed appeals before the High Court under Section 54 of the Act. So far as the appellants (landowners) were concerned, they filed cross-objections and prayed for enhancement in the compensation at the rate of Rs.150/- per square feet as against Rs.80/- to Rs.100/- per square feet awarded by the Reference Court.

12. The Division Bench of the High Court, by common impugned judgment/order partly allowed the appeals filed by TTD (respondent herein) and reduced the compensation payable to the appellants to Rs.30/- per square feet. In other words, in the opinion of the High Court, the Reference Court was not right in determining the compensation payable between Rs.80/- to Rs.100/- per square feet instead it should have been paid at the rate of Rs.30/- per square feet uniformly to all the landowners (appellants). In this way, the appellants were held entitled to get the compensation at the uniform rate of Rs.30/- per square feet for their respective lands. As a consequence, the cross objections filed by the appellants herein (landowners) for enhancement of the compensation at Rs.150/- per square feet were dismissed. Against this judgment/order, the claimants/landowners have filed these appeals by way of special leave petitions.

21. The Reference Court, therefore, took into consideration the rates of lands prevailing in the years 1957, 1962 and 1976 (without taking into account the rates of lands prevalent in the years 1986 and 1987 though they related to lands sold in near proximity with acquisition of the lands in question on the ground that the appeals were pending in relation to these lands against the orders/awards) and then taking into account the appreciation in the value of land in the last 25 years at Rs.3/- per square feet per annum fixed the fair market value of land in question between Rs.80 to Rs.100/- per square feet.

24. We do not agree with the aforesaid finding of the High Court for the following reasons detailed infra.

29. In the light of foregoing discussion, we are of the considered opinion that the rate fixed by the Reference Court between Rs.80/- to Rs.100/- per square feet for the lands in question was just and proper and the High Court erred in reducing the same to Rs.30/- per square feet.

34. We, however, make it clear that the observations made in para 33 are only in the nature of observations and not an order/writ issued against the TTD.

35. In view of foregoing discussion, the appeals succeed and are allowed in part. The impugned judgment/order of the High Court is set aside and the awards passed by the Reference Court (civil court) are restored with the modification indicated above. The respondents are directed to calculate the payment of compensation payable to each appellant (landowner) as directed above and pay the compensation money to each of the appellant within three months from the date of the receipt of copy of this judgment.

April 23, 2015.