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PETITIONER: K.PADMARAJU & PADMANABHA RAJU & ORS.

       Vs.

RESPONDENT: THE SENIOR REGIONAL MANAGER, F.C.I. HYDERABAD & ORS.

DATE OF JUDGMENT:       03/09/1996

BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. FAIZAN UDDIN (J)

ACT:

HEADNOTE:

JUDGMENT:                          O R D E R      We have heard the learned counsel on both sides.      Notification under Section 4(1) of the Land Acquisition Act, 1894  (for short,  the "Act") was published on March 5, 1983  acquiring  33  acres  84  cents  of  land  in  village Srungavruksham in  Bhimavaram Taluk, West Godavati District, Andhra Pradesh  for construction  of FCI  godowns. The  Land Acquisition Officer  in his  award made  under Section 11 on March 30,  1984  determined  compensation  at  the  rate  of Rs.32,500/- per acre for wet land and @ Rs.32,000/- per acre for  dry   land.  On   reference,  the   subordinate  Judge, Bhimavaram enhanced the compensation to Rs.90,000/- per acre by his  award and  decree made  under Section 26 on December 27, 1988.  On appeal,  the Division   Bench  of  the  Andhra Pradesh High  Court by  order dated October 25, 1991 in A.S. Nos.1392, 1393  and 1394/89  set  aside  the  award  of  the reference Court  and confirmed  that of the Land Acquisition Officer. Thus, these appeals by special leave.      Though the  claimants have  relied upon voluminous sale transactions running  into as  many as 20 sale transactions, Ex.A-1 to  A-20 all,  except Ex.A-4,  are  post-notification sales. So they cannot be relied upon as comparable ones. The only relevant document in this case is the sale deed, Ex.A-4 dated June  17, 1982  in respect of land admeasuring 5 cents sold for  a sum  of Rs.7500/-.  The reference  court dealing with  all  the  sale  transactions  granted  compensation  @ Rs.90,000/- per  acre. When  a large  extent of  land of  33 acres 84  cents is  acquired for the purpose of constructing godowns, no willing prudent purchase the land at the rate of Rs.90,000/- per  acre based  on  mere  a  sale  deed  Ex.A-4 involving 5  cents of  land. The reference Court, therefore, was obviously  in gross  error in relying upon that document apart from other documents, in determining the compensation.      The question  then is:  what would  be  the  reasonable compensation which the lands were capable to fetch as on the date of  the notification?  It is  an indisputable fact that all these  lands are  agricultural fertile lands situated in

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West Godavari District and no prudent vendor would sell even at the  depressed price  for not  less than  Rs.50,000/- per acre. It is brought out to our notice from the evidence that railway track  pass near  the acquired  land and there is an easy access  to railway  station; near  the land acquired is also situated  a cinema hall; there are built up areas apart from mango  growth around  the acquired  land.  Under  these circumstances, the  lands are capable of double crops; being wet land  they cannot be sold at a lesser price. Normally, a prudent seller  would sell  and the  prudent purchaser would purchase at  the rate of not less than Rs.50,000/- per acre. Considered from  this perspective  and going  by  the  above price, we  hold that  the market value of the acquired lands would be Rs.50,000/- per acre. The claimants are entitled to the statutory solatium and interest granted by the reference Court. As  regards the  value of the trees, the award of the reference Court  has not  been interfered  with by  the High Court.      The appeal  is accordingly allowed and the judgment and order   of the  High Court  stand set aside and the award of the reference  Court  stands  modified.  The  claimants  are entitled to  the compensation at the rate of Rs.50,000/- per acre with  solatium at  30% on  the  enhanced  compensation, interest at  9% from  the date  of the taking possession for one year  and 15%  on enhanced  compensation thereafter till date of  deposit in court. The claimants are entitled to 12% per  annum  of  additional  amount  from  the  date  of  the notification till date of the award under Section 11.      The appeals are accordingly allowed. No costs.