IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS.22-23 OF 2001

C. Laxma Reddy and Ors.      ...Appellant(s)

Versus

Land Acquisition Officer (M.R.O.), Farooqnagar, A.P.      ...Respondent(s)

O  R  D  E  R

1. Heard learned counsel for the parties.

2. In  these  appeals,  lands  of  two  villages,  namely,  Lingareddiguda  and

Chatanpalli, were acquired.  The Land Acquisition Officer awarded compensation at

the rate of Rupees fifteen thousand per acre for Lingareddiguda village and Rupees

twenty thousand per acre for Chintapalli village.  On a petition filed under Section 18

of  the  Land  Acquisition  Act,  the  Reference  Court,  by  relying  upon  documents,

Exhibits A-6 to A-9 came to the conclusion that market value of the acquired land was

Rupees fifty per square yard.   He then deducted 1/3rd towards development charges

and 1/5th on account of the fact that the lands were situated in the Panchayat area and

awarded compensation at the rate of Rupees twenty seven per square yard with other

benefits admissible under the statute.

...2/-

- 2 -  

3. Feeling  dissatisfied  with  the  award  of  the  Reference  Court,  the  Land

Acquisition Officer filed appeal before the High Court which remitted the matter to

the Reference Court for fresh determination of the compensation payable to the land

owners.  That order was set aside by this Court in Civil Appeal Nos. 709-710 of 1999

and the High Court was asked to redecide the appeal on merits.  Thereafter, the High

Court partly allowed the appeal of the Land Acquisition Officer and fixed the amount

of compensation at the rate of Rupees twenty four thousand per acre.  For doing so,

the High Court relied on the observations made by the Land Acquisition Officer that

during 1989 a piece of land measuring two acres was sold at the rate of Rupees thirty

three thousand per acre.  Undisputedly, no document was exhibited on behalf of the

State to prove that the land measuring two acres was sold at the rate of Rupees thirty

three thousand per acre.  It is thus clear that no evidence was adduced on behalf of

the State regarding the market value of the acquired land.  This being the position,

the High Court was not at all justified in fixing the compensation of the acquired land

at the rate of Rupees twenty four thousand per acre and modifying the award made

by the Reference Court.

4. Accordingly,  the appeals  are  allowed,  impugned  order  rendered  by  the

High Court is set aside and the award passed by the Reference Court is restored.  No

costs.

......................J.       [B.N. AGRAWAL]

......................J.       [G.S. SINGHVI]

New Delhi, December 10, 2008.