M/S Jupiter Coop. Housing Society vs Surender Singh
2022 Latest Caselaw 6962 Tel

            THE HONOURABLE SRI JUSTICE
                        A.GOPAL REDDY
                              and
                  THE HONOURABLE SRI JUSTICE
                         K.S.APPA RAO

              A.S.Nos.553 & 611 of 2006 and Cross-Objections




                       Date of Judgment: 19-09-2011

Between:

The LAO (RDO) Nizamabad

                                                  ..Appellant
and


1. Ganga Rajaiah and others
                                                                ..Respondents

The Court made the following Judgment:

THE HONOURABLE SRI JUSTICE A.GOPAL REDDY and THE HONOURABLE SRI JUSTICE K.S.APPRA RAO

A.S.Nos.553 and 611 of 2006 and Objections

Common Judgment: (Per Hon'ble Sri Justice A.Gopal Reddy)

These two appeals by the Land Acquisition Officer (LAO) and X objections by the claimants arise out of judgment in O.P.No.128 of 1997, dated

21-09-2005 and O.P.No.95 of 1999, dated 24-10-2009 on the file of I Additional District Judge, Nizamabad are heard together and disposed of by this common

judgment.

Same evidence has been adduced in both the cases on which basis the lower court fixed the market value of the acquired land at Rs.1,93,600/- in both

the Ops.

An extent of Ac.2.26 gts. of land covered by different survey numbers belonging to the respondents/claimants in O.P.No.128 of 1997 was acquired for providing house sites to the weaker sections of the society by issuing draft

notification under Section 4(1) of the Land Acquisition Act, 1894 (for short "the Act") which was published in the District Gazette dated 16-01-1996 and possession of the same was taken on 20-02-1996.

The LAO by his award dated 10-06-1996 fixed the market value of the acquired land at Rs.35,500/- per acre.

The claimants who received the amount under protest filed an application under Section 18 of the Act for referring the matter to the civil court for due determination

of the compensation payable to them. On receipt of reference by the civil court and on issuing notices the claimants filed their claim statement claiming compensation of the acquired land at Rs.100/- per square yard or Rs.2,80,000/- per acre.

To substantiate their claim the claimants examined P.Ws.1 to 5 and marked registered sale deeds dated 16-03-1984 and 03-10-1979 as Exs.A1 and A2 and certified copy of the judgments of the High Court in A.S.Nos.2482 of 1989 and 2861 of 1999 are marked as Exs.A3 and A4 respectively. On behalf of the LAO R.W.1 was examined and Ex.B1--award copy was marked.

The lower court after considering the oral and documentary evidence fixed the market value of the acquired land at Rs.1,93,600/- per acre. Aggrieved by the same the LAO filed A.S.No.553 of 2006 and the claimants have filed

Cross Objections.

Similarly, an extent of Ac.10.00 of land covered by four different survey numbers belonging to 8 claimants in O.P.No.95 of 1999 of Anksapur village,

Velpur Mandal, Nizamabad District was acquired for providing house sites to the weaker sections of the society by issuing draft notification under Section 4(1) of the Act and the same was published in the District Gazette dated 16-07-1993. The possession of the land was taken over by the Government on 20-02-1995.

The LAO by his award dated 24-11-1997 fixed the market value of the acquired land at Rs.24,473/- per acre. The claimants who received the amount under protest filed an application under Section 18 of the Act for referring the matter to the civil court for due determination of the compensation payable to the lands

acquired.

Claimant No.2 filed claim petition which was adopted by claimant Nos.1

and 3 to 8 claiming compensation at Rs.100/- per square yard or Rs.3,00,000/- per acre. To prove the true market value P.Ws.1 to 5 were examined and Exs.A1 to 9 were got marked. On behalf of the LAO, R.W.1 was examined and Ex.B1-- award copy was marked.

The lower court after considering the oral and documentary evidence fixed the market value of the acquired land at Rs.1,93,600/- per acre. Aggrieved by the same the LAO filed A.S.No.611 of 2006 and the claimants filed Cross

Objections.

Heard the learned Government Pleader for appeals and also Sri V.Tulasi Reddy for the claimants/cross objectors and we have gone through the entire evidence adduced by the parties.

In both the OPs., Exs.A1 and A2--sale deeds and judgments delivered by the High Court in A.S.Nos.2482 of 1989 and 2861 of 1999 are the basis for enhancement of compensation.

P.W.1, who is claimant No.2 in O.P.No.128 of 1997, stated that seven

years ago his land in an extent of Ac.1.20 gts. and Ac.1.06 gts. of land belonging to claimant No.1 was acquired for providing house sites; that the acquired land is a dry cultivated as Baghayat abutting the village at a distance of 1 KM from National High Way No.16; they used to raise turmeric, chillies, vegetables, maize, Sajja and other commercial crops and get 25 quintals of turmeric per acre per year; that the price of turmeric was Rs.1,800/- to 2,000/- per quintal in the year 1988 when the lands were acquired; they used to get Rs.7,000/- per acre from maize and Rs.10,000/- per acre from out of vegetables and get 28 quintals per

acre @ Rs.1,000/- per quintal. He also stated that they used to get net income of Rs.65,000/- per acre and after spending 20% per acre, they get Rs.50,000/- per acre in all per annum and the market value at the time of acquisition was Rs.2 lakhs per acre and the lands were sold at Rs.100/- per square yard for the purpose of house sites.

P.W.2, who is the vendor of the sale deed--Ex.A1 dated 16-03-1984, deposed that he sold Ac.0.10 gts. of land in Anksapur village for Rs.50,000/- to

one Sunket Balaiah;

that the acquired lands are similar to the lands held by him with regard to fertility and residential locality and the lands can be used as house sites.

P.W.3, Assistant Secretary of Gram Panchayat Anksapur village stated that he signed as witness in Ex.A2--registered sale deed, dated 03-10-1979 whereunder one Rangareddy sold 150 square yards in Sy.No.424/A of Anksapur

village at Rs.100/- per square yard and earlier he worked as Village Administrative Officer of Anksapur village and the acquired lands and lands covered under Ex.A2 are similar in nature.

P.W.4 deposed that the lands were acquired for providing house sites to the weaker section people in Mothe village, Velpur Mandal and the LAO fixed the market value of the acquired land at Rs.12,000/- per acre for dry lands and Rs.19,200/- per acre for wet lands; that the distance between his village and Anksapur village is two kilometers and the lands in Anksapur village are more fertile. Ex.A3 is the judgment copy in A.S.No.2482 of 1989, dated 10-09-1996 wherein the compensation has been enhanced to Rs.20/- per square yard with

1/3rd deduction and awarded Rs.15/- per square yard which works out Rs.72,600/- per acre.

P.W.5, who is another claimant in O.P.No.519 of 1992, stated that an

extent of Ac.0.22 gts. situated at Kammarpally were acquired by the Government for providing house sites in which the LAO fixed the market value at Rs.12,325/- per acre and the lower court enhanced the same to Rs.10/- per square yard with

1/3rd deduction for developmental charges. In appeal, the High Court in A.S.No.2861 of 1999, dated 24-04-2001 under Ex.A4 fixed the compensation at Rs.55/- per square yard. On further appeal by the State Government to the Supreme Court, the same was reduced to Rs.40/- per square yard without any further deductions towards developmental charges.

Claimant No.2 in O.P.No.95 of 1999 was examined as P.W.1. He stated that his land measuring Ac.2.34 gts. in Sy.Nos.359/1 and 423 of Anksapur village was acquired for the purpose of providing house sites to the weaker sections of the society and the acquired land is at a distance of 1 KM to the National High Way 16. His evidence is similar to the evidence of P.W.1 in O.P.No.128 of 1997.

P.Ws.2, 3, 4 and 5, who are vendors and attestors of Exs.A1 and A2, are common in both the O.Ps. They speak about Exs.A1 to A4 in O.P.No.128 of 1997

and Exs.A1 to A9 in O.P.No.95 of 1999.

As against the above evidence, on behalf of LAO R.W.1 was examined. He admitted that for the lands in four Mandals i.e. Balkonda, Morthad, Velpur and Kammarpally settlement was arrived in the Lok Adalat where common rates were fixed for payment of compensation.

Therefore, the sale deeds covered under Exs.A1 and A2 can be taken into consideration for the purpose of fixation of market value for the lands in both the villages. The evidence of R.W.1 discloses that the lands in four mandals are same and common rates were fixed for payment of compensation.

Under Ex.A1 Ac.0.10 gts. of land was sold at Rs.50,000/- in the year 1984 which works out Rs.2 lakhs per acre whereas under Ex.A2, 150 square yards was sold at Rs.15,000/- in the same village of Anksapur which works out

Rs.4,85,000/- per acre in the year 1979. Whereas the lands acquired under notification dated 04-06-1988 is the subject matter of A.S.No.2482 of 1989 of

Mothe village, Velpur Mandal. After giving 1/3rd deduction the market value was fixed at Rs.15/- per square yard. For the lands acquired in Kammarpally, which is the subject matter of A.S.No.2861 of 1999, the High Court fixed the market value at Rs.55/- per square yard.

On further appeal, the Supreme Court reduced it to Rs.40/- per square yard without any deduction in which the notification was issued in the year 1988.

It is not unreasonable for giving necessary escalation, as the time gap between notification covered by previous awards and the notification covered by present acquisition. What will be the escalation which can be granted will depends upon the market value prevalent at the time of notification, which is the crucial period for fixation of market value. Since Exs.A1 and A2 are sale deeds which are of the year 1984 and 1979. In the absence of any subsequent sale

deeds filed by the claimants of the years 1990, 1993 i.e. three years prior to issuance of notification, it is difficult to assess the market value and fix the percentage of escalation. Ex.B1--award of the adjacent village has been taken by the LAO for fixing the market value. However, LAO admitted about the settlement arrived by the claimants in the Lok Adalat and fixing up common rates

for payment of compensation in respect of lands situated in four mandals viz. Balkonda, Morthad, Velpur and Kammarpally in the year 2002 and in Ex.B1 also it has been stated that the sale of adjacent village has been taken. The sale of Anksapur village, Velpur Mandal were taken as basis for fixing up market value in all the mandals. It shows that lands are similar in nature in fertility and same crops ere raised in all the mandals. Under Ex.A4 lands were acquired though 4(1) notification dated 04-06-1988 wherein the market value of the acquired land is fixed at Rs.55/- per square yard. Therefore, after deduction Rs.40/- per square yard has been fixed by the Supreme Court. If we take 10% escalation for Rs.40/-, for the time gap between notification covered by Ex.A4 and the present notification comes to 7½ years, the value of the land comes to Rs.70/- per square yard which has been

rightly calculated by the lower court but again deducting 1/3rd towards developmental expenses and fixing the market value at Rs.40/- per square yard is not correct. As the Supreme Court after giving 53% deduction from the rate adopted under Ex.B4 in O.P.No.519 of 1992, which is the subject matter of A.S.No.2861 of 1999, fixed the market value at Rs.40/- per square yard further

deduction does not arise. Since the claimants are claiming Rs.60/- per square yard, we accordingly fix the market value of the acquired land at Rs.60/- per square yard with all statutory benefits as held by the Supreme Court in SUNDER v.

UNION OF INDIA[1].

The appeals filed by the LAO are dismissed and Cross Objections filed by the claimants are allowed. No order as to costs.

_________________ A.GOPAL REDDY, J.

_____________ K.S.APPA RAO,J.

19-09-2011 Murthy

[1] (2001) 7 SCC 211