K. PADMARAJU @ PADMANABHA RAJU AND ORS.versusTHE SENIOR REGIONAL MANAGER, F.C.L. HYDERABAD AND ORS.

A          K. PADMARAJU@ PADMANABHA RAJU AND ORS.
                                           v.
    THE SENIOR REGIONAL MANAGER, F.C.l. HYDERABAD AND
                          ORS.

                                SEPTEMBER 3, 1996
B
                (K. RAMASWAMY AND FAIZAN UDDIN, JJ.]

          Land Acquisition Act, 1894 :

C         Compe11sation--Deten11i11ation of-Agiicultural lands valued at Rs.
    90,000 by Reference Cowt based on a sale deed i11volvi11g only 5 cents of
    land-WJ1en large extent of la11d is acquired, reliance on the ;;ale deed of small
    extent of land not justified-Co11sideli11g the givwth around the acquired land
    and the facilities available compensatio11 dete1111ined at Rs. 50,000 per
    acre-Claimants entitled to solatiwn at 30% on the e11hanced compensation,
D   interest at 9% jivm date of taking possession for 011e year and 15% 011
    e11hanced compensation thereafter till date of deposit i11 Cowt-Also e11titled
    to 12% per a1111um of additional amou11t from date of notification till date
    of award.

          CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 767-69
E
    of 1993.

         From the Judgment and Order dated 25.10.91 of the Andhra Pradesh
    High Court in A. Nos. 1392-94 of 1989.

F         P.A. Choudhary, AD. Rao and A. Subba Rao for the Appellants.

          Y. Prabhakara Rao for the Respondents.

          The following Order of the Court. was delivered :

          We have heard the learned counsel on both sides.
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        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
  Godavari District, Andhra Pradesh for construction of FCI godowns. The
H Land Acquisition Officer in his award made under Section 11 on March
                                      494
              K. PADMARAJU v. SR. REGNL MANAGER, F.C.I.                 495

 30, 1984 determined compensation at the rate of Rs. 32,500 per acre for A
 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
                                                                         B
 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 C
 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 construct- D
 ing godowns, no willing prudent purchaser would offer to 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.
                                                                              E
         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 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 F
  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 G
. 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 H
    496                  SUPREME COURT REPORTS [1996] SUPP. 5 S.C.R.

A   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,
B   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.
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    G.N.                                                     Appeals allowed.