Smt P. Saraswathamma R/O ... vs The Rdo/Lao, Anantapur Dist
2022 Latest Caselaw 5214 AP

                    THE HON'BLE SRI JUSTICE M. GANGA RAO

                                     AND

                THE HON'BLE SRI JUSTICE T. MALLIKARJUNA RAO

                              LAAS.No.97 of 1997

ORDER: [per M. Ganga Rao,J]

      This appeal came to be filed by the Land Acquisition Officer and Special

Deputy Collector (L.A), O.N.G.C, Rajahmundry, against the common order and

decree dated 19.03.2004 in LAOP,No.97 of 1997 (along with LAOP.Nos.95, 96,

98, 99, 100 & 101 of 1997) passed by the Senior Civil Judge, Narsapur, whereby

the compensation fixed by the Land Acquisition Officer (LAO) for the acquired

land at Rs.1,00,000/- was enhanced to Rs.1,20,000/-per acre.


      Heard learned counsel for the appellant. Though notice is served on the

respondent, none appeared.

Learned counsel for the appellant contended that the award of the

reference Court fixing the compensation for the acquired land at Rs.1,20,000/-

per acre is illegal and contrary to the settled principles of law. He further

submitted that in similar appeals preferred by the appellant herein against the

award of the reference Court enhancing the compensation for the acquired

lands by the ONGC, from Rs.1,04,900/- to Rs.1,60,000/-, the Division Bench of

the High Court of Judicature, Andhra Pradesh at Hyderabad, while allowing the

appeals reduced the compensation for the acquired land from Rs.1,60,000/-

and requested to allow this appeal and reduce the compensation enhanced on

same analogy. He placed on record a copy of the common judgment passed by

in LAAS.Nos.2001 & 2006 of 2005, 821 & 854 of 2006 and 86 of 2007,

We have perused the said order. The facts of the said case are that the

land of an extent of Ac.47.80 cents in RS.Nos.434, 436, 437, 438 & 439 of

Rustumbada village of Narsapur Mandal was acquired by the Government for

establishment of Tubular Pipe Yard (Industrial Complex), by ONGC by issuing

notification under Section 4(1) of the Land Acquisition Act, 1894 [for short,

'the Act'] on 10.06.1993. The LAO passed Award fixing the compensation for

the acquired land at Rs.1,04,900/- per acre along with other statutory benefits.

As the claimants sought reference of the matter to the Civil Court, the matter

was accordingly referred to the reference Court under Section 18 of the Act.

The Reference Court basing on the evidence on record, i.e., sale transactions

under Exs.A3, A4 and A5; the date of acquisition of the land in question

therein; and the potential value and rise in land prices fixed the market value

of the acquired land at Rs.2,00,000/- per acre; however after deducting 20% of

the said value towards developmental charges, ultimately fixed the market

value of the acquired land at Rs.1,60,000/- per acre. Apart from that, the

reference court also granted certain amounts towards trees. Aggrieved by the

same, the Land Acquisition Officer preferred appeals aforesaid before the High

Court. The Division Bench, after considering all the aspects and inter alia

observing that since there was a gap of one year between the sale transactions

under Exs.A3, A4 and A5 and the date of acquisition of the land in question,

opined that the reference court ought to have fixed the market value of the

acquired land by giving an increase of 10% to the market value fixed by the

LAO, and in such case, the market value of the acquired land would be

Rs.1,60,000/- per acre and accordingly reduced the compensation for the

acquired land as fixed by the reference Court from Rs.2,00,000/- to

Rs.1,60,000/- per acre and since the acquired land is taken for industrial

purpose by ONGC i.e. for conducting drilling operations and not for any

developmental purpose, there is no need to deduct any amount towards

developmental charges and accordingly allowed the said appeals.

In the instant case, the land was acquired for the purpose of establishing

the ONGC KG Project Gas by issuing notification under Section 4(1) of the Act

and the same was published in A.P Gazette dated 20.11.1994 and 03.07.1995

respectively. After conducting enquiry, the LAO passed Award No.2/97-98

dated 31.07.1997 fixing the compensation for the acquired land at

Rs.1,00,000/- per acre along with other statutory benefits; and on reference,

the reference Court enhanced the compensation to Rs.1,20,000/- per acre. In

the case relied on by the appellant, the compensation arrived by the reference

Court at Rs.2,00,000/- per acre is reduced taking into consideration the fact

that the reference Court having taken the market value of the acquired land

basing on the evidence on record, approximately at Rs.1,50,000/- per acre,

committed an error in adding another sum of Rs.50,000/- in lump sum, for

fixing the market value of the acquired land at Rs.2,00,000/- per acre.

However since there was a gap of one year between the sale transactions relied

on by the claimants therein and the date of acquisition of the land in question

therein, the market value of the acquired land fixed by the LAO was increased

by 10% and the market value was fixed at Rs.1,60,000/-. Nevertheless, in the

instant case, the market value fixed by the LAO at Rs.1,00,000/- per acre was

enhanced to Rs.1,20,000/- by the Reference Court, which is far less than

Rs.1,60,000/- which was the enhancement amount reduced to by the Division

Bench of the High Court. Moreover, in view of time gap between the

acquisition in the case relied on and the instant case, the enhancement cannot

be said to be on higher side. Therefore, in our considered opinion, there is no

illegality or irregularity in the order of the Reference Court warranting

interference of this Court.

In view of the aforesaid reasons, the LAAS is dismissed. There shall be

no order as to costs.

Pending interlocutory applications, if any, shall stand closed.

______________ M.GANGA RAO, J

_______________ T. MALLIKARJUNA RAO, J

17.08.2022 Vjl