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land acquisition act=whether the reference court rightly awarded interest from the date of taking possession or not? The said issue is no longer res integra. It is now fairly well settled that the starting point for granting of interest is from the date of issuance of the notification, but not anterior to it. Therefore, the claimants are entitled to interest from the date of issuance of the notification i.e., on 30.08.1985 on the compensation including Solatium and additional market value with all statutory benefits, as per the law declared by the Supreme Court in V.Sunder v. Union of India (AIR 2001 SC 3516). The Appeal Suit (SR) is, accordingly, allowed in part. No order as to costs.

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESHAT

English: a Balance icon ‪中文(繁體)‬: 天平圖示

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HYDERABAD

WEDNESDAY, THIS THE THIRD DAY OF AUGUST,

TWO THOUSAND AND ELEVEN

PRESENT

HON’BLE SRI JUSTICE A.GOPAL REDDY

AND

HON’BLE SRI JUSTICE K.S.APPA RAO

 

LA.AS.No.770 OF 2011

Between:

Sub-collector, (Land Acquisition Officer)

… appellant

                    And

Kumbam Ramlingam and others

… Respondents

This Court made the following:

 

HON’BLE SRI JUSTICE A.GOPAL REDDY

AND

HON’BLE SRI JUSTICE K.S.APPA RAO

 

LA.AS.No.770 OF 2011

 

JUDGMENT: –   

 

This appeal is filed under Section 54 of the Land Acquisition Act, 1894 by the Special Collector (Land Acquisition Officer), Miryalaguda, aggrieved by the enhancement of the compensation made by the Subordinate Judge at Nalgonda in O.P.No.60 of 1987, dated 16.07.1993.

Undisputed facts relevant for disposal of the appeal, are briefly stated as under:-

On the requisition made by the Executive Engineer, T.L.C.Division, Mint Compound, Hyderabad for acquiring the land for the purpose of construction of 132 K.V.Station at Konda Mallepalli village, Devarakonda Mandal, an extent of Acs.5-04 guntas of land in Survey No.101/2 and Acs.3-09 guntas of land in survey No.102/2 of the said village belonging to the respondents/claimants was taken possession on 25.02.1985, followed by a draft notification under Section 4(1) of the Act, dated 30.08.1985.  The Land Acquisition Officer after complying the due formalities under the Act, by award dated 04.04.1987, fixed the market value of the acquired land at Rs.25,000/- per acre with 30% Solatium and interest thereon.

Dissatisfied with the said fixation, reference was sought by the claimants to the civil Court under Section 18 of the Act for due determination of the compensation.  On reference being made to the civil Court, claimants adduced evidence in the form of oral and documentary, by examining P.W.1 and marking Exs.A1 to A5 documents.  No oral or documentary evidence has been adduced on behalf of the referring officer.  Ex.A1 is the notice; Ex.A2 is the preliminary valuation notes for the proposal of the acquisition submitted by the Mandal Revenue Officer; Exs.A3 and A4 are the valuation estimated for the irrigation wells situated in the lands and its report respectively; and Ex.A5 is the certified copy of the sale deed, dated 29.05.1984, whereunder an extent of Ac.2-00 guntas of land was sold on 29.05.1984, which works out to Rs.1,20,000/- per acre.

The reference court after considering the above evidence of P.W.1 with regard to the development of the land adjacent to the acquired land, where residential buildings, milk chilling centre, rice mills, small factories and housing colonies have come up and also part of the land acquired has the potentiality to be sold as a building site, fixed the market value of the acquired land at Rs.45,000/- per acre and awarded interest from the date of taking possession i.e., 25.02.1985 and additional market value from the date of notification.

We have heard the learned counsel for the appellant and also the learned counsel for the respondents/claimants and gone through the material on record.

No doubt, the reference court failed to assign any reasons for fixing the market value of the acquired land at Rs.45,000/- per acre.  Under Ex.A5-sale deed, an extent of Ac.2-00 guntas of land was sold at Rs.6,000/- per acre, which works out to Rs.1,20,000/- per acre.  Though none connected with the sale deed was examined, but in view of the amendment to the Act, introducing Section 51-A the contents of the sale deed recorded therein, can be taken into consideration for arriving the market value.

P.W.1, who is one of the claimants, stated in his evidence that the acquired land is a dry agricultural land cultivated with the wells situated therein.  But since residential buildings, milk chilling centre, rice mills, housing colonies etc., have already came up adjacent to the acquired land, the land will have the potentialities to be sold as a house sites.  The said evidence has not been rebutted by the Land Acquisition Officer.  But his evidence is also strengthened with the observation made under the award, wherein it has been recorded about the development and existing of housing colonies adjacent to the acquired land.  Therefore, in the absence of any other small sale deeds available, the sale deed under Ex.A5 can be taken as a basis for fixing the market value with necessary deductions.

It is well settled that when once the small sale deeds have been taken into consideration for fixation of the market value, but the large extents of lands were acquired, 1/3rd deduction towards the roads and other amenities and further deductions should also be made for developmental charges for providing amenities, so that the land owners can sell the lands towards house sites.  In some cases, the Supreme Court also accepted the deduction of 55% towards the roads, open places and developmental charges.

In the present case on hand, even if 55% is deducted from Rs.1,20,000/-, the market value comes to Rs.54,000/- per acre.  In the absence of any cross-objections, the market value fixed by the reference court is not excessive and the same needs no interference.  We, accordingly, confirm the fixation of the market value by the reference Court at Rs.45,000/- per acre.

The next question that falls for consideration is whether the reference court rightly awarded interest from the date of taking possession or not?

The said issue is no longer res integra.  It is now fairly well settled that the starting point for granting of interest is from the date of issuance of the notification, but not anterior to it.  Therefore, the claimants are entitled to interest from the date of issuance of the notification i.e., on 30.08.1985 on the compensation including Solatium and additional market value with all statutory benefits, as per the law declared by the Supreme Court in V.Sunder v. Union of India (AIR 2001 SC 3516).

The Appeal Suit (SR) is, accordingly, allowed in part.  No order as to costs.

_____________________
A. GOPAL REDDY, J

 

 

 

____________________
K.S. APPA RAO, J

03-08-2011

lmv


HON’BLE SRI JUSTICE A.GOPAL REDDY

AND

HON’BLE SRI JUSTICE K.S.APPA RAO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LA.AS.No.770 OF 2011

 (Order of the Bench delivered by AGR, J)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dt: 03-08-2011

lmv

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