Andhra Pradesh High Court - Amravati

The Special Deputy Collector Cum ... vs Tappeta Swamuel Died By His Lrs on 31 March, 2023

Bench: M.Ganga Rao, T Mallikarjuna Rao

             THE HON'BLE SRI JUSTICE M.GANGA RAO

      THE HON'BLE SRI JUSTICE T.MALLIKARJUNA RAO

                      L.A.A.S.No.1147 of 2011

JUDGMENT: (per Hon'ble Sri Justice M.Ganga Rao)

     The Special Deputy Collector-cum-Land Acquisition Officer,

Srisailam Project, Kurnool filed this appeal under the provisions of

Section 54 of the Land Acquisition Act, 1894 (for short 'the Act')

being aggrieved by the order of the Reference Court i.e., Senior

Civil Judge, Nandikotkur passed in L.A.O.P.No.45/2005 dated

12.07.2011.


2.   The Land Acquisition Officer - Special Deputy Collector

(FAC) Land Acquisition & Rehabilitation, Srisailam Project on the

requisition of     the Executive Engineer, KCC Division No.4,

Nandikotkur, acquired the land extent Ac.48.57 of Alaganur

Village, Midthur Mandal for construction of Alaganur Balancing

Reservoir.     The lands are coming under submersion and

peripheral area.     The prepared sub division records were pre-

scrutinized by the Assistant Director of Survey and Land Records,

Kurnool. The draft notification under Section 4(1) of the Act for an

extent of Ac.48.57 was issued while invoking urgency clause

under Section 17(4) of the Act by dispensing with the enquiry

under Section 5-A of the Act and the same was published in
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Gazette on 12.11.2001.      The substance of draft notification was

published in Alaganur village and on notice boards of Mandal

Revenue Office, Midthur, Mandal Parishad Development Office,

Midthur, Midthur Police Station and Sub-Registrar's Office,

Nandikotkur      on   22.11.2001   and      hence   the   date    of   draft

notification in this case was taken as 22.11.2001.               The draft

declaration under Section 6 of the Act was published in A.P.

Gazette Part-I Extraordinary SSP No.135 dated 16.11.2001 and

the same was published in Telugu newspaper Andhra Boomi daily

and English newspaper Pledge on 20.11.2001 and 21.11.2001

respectively and the substance of the draft declaration was also

published   in   Alaganur   village    on    22.11.2001.     The       Land

Acquisition Office after survey and personal inspection along with

the officials, categorized the acquired lands in two categories to fix

the market value viz., 1) Category-I - dry lands which were under

cultivation with own bore well water and raising wet crops. The

land extent Ac.6.40 in Sy.No.205 and Ac.1.79 in Sy.No.207 are

coming under this category and 2) Category-II - dry lands under

rainfed cultivation.    The land extent Ac.0.40 in Sy.No.203/1B,

Ac.0.46 in Sy.No.211/3, Ac.1.56 in Sy.No.263/B2B, Ac.1.99 in

Sy.No.264/2B, Ac.1.38 in Sy.No.281, Ac.0.53 in Sy.No.305/1,
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Ac.0.04 in Sy.No.307/1, Ac.1.67 in Sy.No.319/1, Ac.0.35 in

Sy.No.320/1, Ac.0.81 in Sy.No.321/1, Ac.2.74 in Sy.No.325/3,

Ac.3.00 in Sy.No.327/A1, Ac.0.86 in Sy.No.327/B1, Ac.10.96 in

Sy.No.337/1B and Ac.1.00 in Sy.No.339/B2 are coming under

this category.    In order to fix the market value of the lands under

acquisition, the following sale transactions of Alaganur village

registered from 23.11.1998 to 22.11.2001 for the crucial period of

preceding three years from the last date of publication of draft

notification, have been ascertained from Sub-Registrar's office,

Nandikotkur:

Sl. Classi-      Survey              Document No./
                           Extent                          Rate per acre
No. fication     Number             Date of Registration
1.     Dry           131   0.70             537/14.5.99          3719.00
                     133   1.50
 2.    Dry           133   0.80             538/14.5.99         10156.00
 3.    Dry         205/2   1.12             867/11.6.99         65370.00
 4.    Dry           340   2.15               /14.10.99         64692.00
 5.    Dry           192   5.00            1705/7.12.99           800.00
 6.    Dry        420/2A   4.88           1737/16.12.99          1512.00
 7.    Dry         237/1   0.68                                  4264.00
                   237/2   1.33           1764/28.12.99
 8.    Dry           367   0.08         2475/23.11.2000       223000.00
                   460/A   5.68
9.     Dry         460/B   7.12          2512/5.12.2000          8500.00
10.    Dry         460/A   2.00          2513/5.12.2000          8500.00
11.    Dry         353/1   0.16           525/26.4.2001         13125.00
12.    Dry         353/1   0.16           526/26.4.2001         13125.00
                     357   1.34
13.    Dry           376   0.07           762/24.5.2001        10000.00
14.    Dry         460/A   1.60           54/16.11.2001         8500.00
15.    Dry           355   0.01           56/16.11.2001       300000.00
16.    Dry           368   0.10           59/16.11.2001        40000.00
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     The Special Deputy Collector had inspected the lands under

acquisition and the sale lands on 06.12.2001 along with the

Special Deputy Tahsildar, Deputy Inspector of Survey and Land

Records, Special Surveyor and the Village Administrative Officer,

Alaganur. Out of the said sale transactions, the sale transaction

in sale item Nos.8, 11, 12, 15 and 16 are in the small extents

measuring Ac.0.16 and below and they do not represent the true

value of the lands under acquisition and hence the same were

discarded.   The sale transaction at Sl.Nos.1 and 13 are mixed

sales of lands at two survey numbers put together and they do not

represent the true value of the lands under acquisition and hence

they were discarded. The sale transactions in the sale item Nos.2,

9, 10 and 14 occurred in different survey numbers which are far

away from the lands under acquisition and they do not represent

the true value of the lands under acquisition and hence they were

discarded. The sale transactions in the sale item Nos.3 and 4 are

registered   on   11.06.1999   and   14.10.1999   respectively,   the

acquisition of the lands started as early as in the year 1997

onwards, they are appears to be made with vested interest, the

transactions made at Sl.Nos.3 and 4 for an amount of Rs.73,214/-

and Rs.1,39,088/- per acre respectively and hence they cannot be
                                 5



taken into consideration for fixing the market value of the lands

under question and thereby they were discarded.         The sale

transactions at Sl.Nos.5, 6 and 7 made for Rs.800/-, Rs.1512/-

and Rs.4264/- respectively, the sale transactions were made to

avoid stamp duty and hence the sales were registered at lower

rates and hence they do not represent the true market value of the

lands under acquisition and thereby they were discarded.       As

there are no sale transactions remained in Alaganur village for

consideration of true value of the lands under acquisition, the

Land Acquisition Officer fixed Rs.36,000/- per acre for dry lands

under   rainfed cultivation mentioned under Category-II and

Rs.47,000/- per acre for irrigated dry lands categorized as

Category-I for which they dry lands under wet cultivation with

own well water and the lands are red mixed soil.


3.   The Land Acquisition Officer while determining the market

value had issued General notices as required under Section 9(1)

and 10 of the Act and the same were published on 22.11.2001.

The individual notices were also served under Section 9(3) and 10

of the Act on all persons interested under acquisition calling for

their claims and objections. The award enquiry was conducted on
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07.12.2001 at Alaganur village by giving clear 15 days time from

the date of service of notices under Section 9(3) and 10 of the Act

and they were given sufficient time and opportunity to produce

documentary evidence and also to file any written statement by

way of affidavits in support of their claims for payment of

compensation. The Land Acquisition Officer having considered all

the documents and the evidence produced by the claimant, passed

the award by fixing the compensation as stated supra along with

30% solatium.


4.   Being aggrieved by the compensation fixed by the Land

Acquisition Officer, the original claimant sought for reference

under Section 18 of the Act to the Civil Court for enhancement of

compensation to Rs.2 lakhs per acre having received the

compensation under protest.


5.   The Reference Court issued notice to the original claimant

and in turn he filed claim petition.   Later, on the death of the

original claimant, the respondents were added as legal heirs as

per orders passed in I.A.No.128 of 2008 dated 05.08.2008.

During enquiry, on behalf of the claimants, PW1 - T.Swamakka

was examined and Ex.A.1 - Sale deed dated 11.07.1999 got

marked. On behalf of the Referring Officer, RW1 - Shankarachary

was examined and Ex.B.1 - True copy of Award No.38/2001 dated

26.12.2001 got marked.

6. The Reference Court having heard both sides allowed the

claim petition by fixing the market value of the acquired lands at

Rs.1,20,000/- per acre. The Reference Court also granted

solatium at 30% on the market value, additional market value @

12% p.a. on the market value of the land from the date of

notification under Section 4(1) of the Act to the date of award of

the Collector or the date of taking possession of the land

whichever is earlier and interest @ 9% p.a. for the first year and

thereafter @ 15% p.a. for the remaining period.

7. Aggrieved by the award of the Reference Court, the Land

Acquisition Officer filed this appeal on various grounds raised in

the Memorandum of Appeal filed under Section 54 of the Act.

8. Now, the point for consideration is:

Whether the order passed by the Reference Court in enhancing the market value of the acquired lands to Rs.1,20,000/- per acre is justifiable or not?

9. Learned Government Pleader for Appeals, while referring the

award of the Land Acquisition Officer, would contend that the

Land Acquisition Officer had inspected the acquired lands,

obtained several sale transactions from the Sub-Registrar's Office,

Nandikotkur, conducted a detailed enquiry and considered

number of sale deeds before fixing the market value. Hence, the

contention of the respondents-claimants that the Land Acquisition

Officer without conducting proper enquiry and opportunity to

them fixed the compensation, is unsustainable. The award of the

Reference Court enhancing the compensation is without any basis

and the escalation of 10% for every year is exorbitant and not

based on any evidence and liable to be set aside and thereby prays

to allow the appeal suit.

10. Sri K.Mohan Rami Reddy, learned counsel appearing for the

respondents-claimants, has taken this Court to the evidence on

record and the award passed by the Land Acquisition Officer. He

states that the acquired lands are fertile lands and they are

irrigated with well water and raised commercial crops like chillies,

cotton, etc. and used to get income of Rs.15,000/- per acre for

every year by way of two crops after deducting all expenses on the

date of notification, but no justifiable reasons are shown by the

Land Acquisition Officer in not considering the sale transactions

obtained from the Sub-Registrar's Officer. Whereas, the Reference

Court has taken into consideration the evidence of PW1 coupled

with Ex.A.1 which was made prior to issuance of notification,

rightly fixed the market value of the acquired lands at

Rs.1,20,000/- per acre. He further states that the

respondents/claimants are permanently deprived of their

livelihood and they are living only on agriculture. He further

states that there is no illegality or irregularity in enhancing the

compensation for both the categories of lands to Rs.1,20,000/- per

acre by the Reference Court and the appellant has failed to show

any ground much less legal grounds for interference of this Court

in the impugned order.

11. Having regard to the facts and circumstances of the case,

submissions of the learned counsel and on perusal of the record,

this Court found that the subject lands were acquired by issuing

notification under Section 4(1) of the Act. The Land Acquisition

Officer surveyed the lands along with Special Deputy Tahsildar,

Deputy Inspector of Survey and Land Records, Special Surveyor

and the Village Administrative Officer, Alaganur and conducted

enquiry. He considered the claims of the original claimant based

on the evidence adduced by him and also considered the sale

transactions occurred during the period from 23.11.1998 to

22.11.2001, which were prior to the issuance of notification under

Section 4(1) of the Act. But, he discarded all the sale transactions

without assigning proper reasons.

12. The Land Acquisition Officer considered the sale item No.3

for an extent of Ac.1.12 for an amount of Rs.65,370/-. The said

sale transaction occurred on 11.06.1999. But, both the Land

Acquisition Officer as well as the Reference Court has not

considered the nature of the lands mentioned in the said sale

item. The Reference Court also grossly erred in not considering

the said sale transaction for enhancing the compensation.

13. However, the Reference Court, having considered Ex.A.1 sale

deed, found that the sale under Ex.A.1 was dry land to an extent

of Ac.1.12 which was valued at Rs.65,370/- per acre and

considered the award No.2/1997, wherein the market value of

acquired land was fixed at Rs.95,000/- per acre. The Reference

Court is justified in fixing the market value of the acquired land at

Rs.1,00,000/- per acre with 10% escalation for the years 1999-

2001. As the market value of the lands increases every year, the

Hon'ble Apex Court said that 10 to 15% needs to be enhanced

every year. Accordingly, the market value of acquired land is fixed

at Rs.1,20,000/-.

14. The Hon'ble Supreme Court in the case of Mehrawal Khewaji

Trust (Registered), Faridkot and others Vs. State of Punjab and

others1, while dealing with the provisions of Sections 23 and 18 of

the Land Acquisition Act, 1894, held at Para 17 thus:

"It is clear that when there are several exemplars with reference to similar lands, it is the general rule that the highest of the exemplars, if it is satisfied that it is a bona fide transaction, has to be considered and accepted. When the land is being compulsorily taken away from a person, he is entitled to the highest value which similar land in the locality is shown to have fetched in a bona fide transaction entered into between a willing purchaser and a willing seller near about the time of the acquisition. In our view, it seems to be only fair that where sale deeds pertaining to different transactions are relied on behalf of the Government, the transaction representing the highest value should be preferred to the rest unless there are strong circumstances justifying a different course. It is not desirable to take an average of various sale deeds placed before the authority/court for fixing fair compensation."

(2012) 5 S.C.C. 432

In the very same judgment, while relying on the decisions in

Ranjit Singh Vs. UT of Chandigarh [(1992) 4 SCC 659], DDA Vs.

Bali Ram Sharma (2 supra) and ONGC Ltd. Vs. Rameshbhai

Jivanbhai Patel [(2008) 14 SCC 745, held that where the acquired

land in urban/semi-urban areas, increase can be to the tune of

10% to 15% per annum and if the acquired land is situated in

rural areas, increase can be between 5% to 7% per annum. In

Union of India Vs. Harpat Singh [(2009) 14 SCC 375], the Hon'ble

Supreme Court applied the rule of 10% increase per annum.

15. The value of the lands increases every year and the

Reference Court having considered the potentiality, proximity and

usage of the lands as reflected in the award of the Land

Acquisition Officer and escalation of 10% every year, has rightly

fixed market value at Rs.1,20,000/- per acre for the acquired

lands.

The Hon'ble Apex Court in the case of Delhi Development

Authority Vs. Bali Ram Sharma and others2, while dealing with the

provisions of Section 23 of the Land Acquisition Act, 1894, held at

Para 7 thus:

(2004) 6 S.C.C. 533

"The land which is the subject-matter of this appeal is acquired for the same purpose as in the aforementioned appeals, but the notification under Section 4(1) of the Act was issued on 24-11-1981 i.e. subsequent to Section 4(1) notification dated 17-11-1980. Obviously, there would be escalation of price in regard to this land. Hence, we think it just and appropriate to give 10% increase in the market value in respect of the land in this appeal. In the result this appeal is also allowed and the impugned judgment is modified by reducing the amount of compensation from Rs 345 per sq yard (amounting to Rs.3,45,000 per bigha) to Rs 76,550 per bigha + 10% escalation. The respondent is entitled to statutory benefits available under the Act based on the amount of compensation as modified above. No costs."

The Division Bench of erstwhile High Court of Judicature at

Hyderabad in the case of Valluri Veerabhadra Rao and others

(1 supra), having taken into consideration of the facts narrated

therein by categorization of the acquired land into three categories

by Land Acquisition Officer viz., 1) dry land with wet crops; 2) dry

land with dry crops; and 3) waste land, held thus:

"... There is clear evidence in the case that the entire land was well developed containing facilities for irrigation of crops and sugarcane plantation and paddy crops are generally raised in these lands. The entire extent of land has thus been utilised for raising wet crops with the help of bore-wells. The land is, therefore, uniform in fertility and value. The entire land should be categorised as dry land with wet crops. There is no warrant to categorise further as has been done by

the L.A.O. Accordingly the entire land should be categorised as one land and has to be valued as such."

However, the Division Bench, having taken into

consideration the escalation of the land prices year by year by

10% and taking into previous acquisition of the land in the year

1980-81 in and around the vicinity of the present acquired land,

enhanced the compensation of Rs.55,000/- per acre from

Rs.30,000/- to the acquired lands, following the decisions of the

Hon'ble Apex Court.

16. The reference court, while deciding point No.2, has taken

into consideration Ex.A.1 sale deed, Sl.Nos.2 and 4 of the sale

statistics and Land Acquisition award No.2/1997, fixed the

market value of Rs.95,000/- per acre. Accordingly, the reference

court has fixed the market value of the acquired land at Rs.1 lakh