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Supreme Court of India

MASIPATLA RAGHAVULUversusTHE REVENUE DIVISIONAL OFFICER, LAO, PEDDAPALLI

Citation
1996 INSC 394
Decided
15 March 1996
Disposal
Appeal(s) allowed

Holding

Compensation for the acquired land is to be fixed at Rs 8,000 per acre, with entitlement to solatium and interest at pre‑1984 rates.

Summary

The National Thermal Power Corporation acquired a large tract of land under a notification issued under Section 4(1) of the Land Acquisition Act, 1894. The Land Acquisition Officer initially fixed compensation at Rs 3,000 per acre, which the Sub‑Judge enhanced to Rs 6,500 per acre, a decision affirmed by the Andhra Pradesh High Court. For another parcel of land in the same hamlet, the Corporation had a policy to withdraw appeals where compensation was Rs 8,000 per acre or less, and the High Court had earlier fixed its market value at Rs 8,400 per acre. The Supreme Court held that, because the lands were contiguous and the Corporation’s policy applied, the compensation for the present parcel must be fixed at Rs 8,000 per acre, and the landowners were also entitled to solatium and interest at rates prevailing before the 1984 amendment. The appeal was allowed.

Issues considered

  • Whether the compensation for land acquired in a contiguous zone should be fixed at Rs 8,000 per acre based on the Corporation’s policy and prior determinations.
  • Whether the landowners are entitled to solatium and interest on the enhanced compensation.

Legislation cited

Subjects

Land acquisitionCompensationSolatiumInterestPolicy decisionContiguous landNational Thermal Power Corporation

Judgment

A                  MASIPATLA RAGHA VULU
                             v.
                                                                                    )
       THE REVENUE DIVISIONAL OFFICER, LAO, PEDDAPALLI

                                  MARCH 15, 1996

B                [K. RAMASWAMY AND G.T. NANAVAT!, JJ.]

            Land Acquisition Act, 1894: Section 4( 1).

          Land Acquisition-Acquisition of land for National Thennal Power
C   Corporation-Compensation by Land Acquisition Officer @ Rs. 3, 000 per
    acr~nhancement by Sub-Judge @ Rs. 6,500 per acre-Order passed by
    Sub-Judge conftnned by High Court-AppeaHn respect of another land
    acquired for same purpose policy decision of Corporation to withdraw ap-
    peals if compensation was Rs. 8,000 or less for per acre--Held land acquired
    being in contiguous zone compensation for such land dete1111ined @ Rs. 8, 000
D   per acre-Landowners also held entitled to solatium and interest at the rates
    prevailing prior to Amendment Act 68 of 1984.

            CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5086 of
    1996.

E        From the Judgment and Order dated 12.2.92 of the Andhra Pradesh
    High Court in A. No 2196 of 1989.

            D. Prakash Reddy and Ms. Rani Chhabra for the Appellants.

            G. Prabhakar and K.C. Dua for the Respondents.
F
            The following Order of the Court was delivered :

            Intervention is allowed.

            Leave granted. We have heard learned counsel on both sides.
G       Notification under Section 4 (1) of the Land Acquisition Act, 1894
  (for short, the 'Act') acquiring large extent of land for National Thermal
  Power Corporation, was published on September 22, 1979. The Land
  Acquisition Officer determined compensation @ Rs3,000 per acre. On
  reference, the learned sub-Judge enhanced the compensation to Rs. 6,500
H per acre. On appeal, the High Court of Andhra Pradesh confirmed the
                                       492
     I            MASIPATLARAGHAVULUv. REV. DNNL. OFF1CER                        493

         order passed by the learned sub-Judge. Thus this appeal by special leave.      A
               It is not in dispute that when for the same purpose another land was
         acquired from Maidpalli village to which Lingapur is a hamlet, the Cor-
         poration itself had taken decision to withdraw the appeals since the com-
         pensation was less than Rs. 8,000. On that basis, the High Court confirmed
         the market value at Rs. 8,400 per acre in Appeal Nos. 869 and 871 of 1985.     B
         In view of the fact that the Corporation itself had taken a policy decision
         to withdraw the appeals where the value of the land was determined at the
         rate of Rs. 8,000 per acre and less, and since the lands are situated in the
         hamlet of the main village Maidpalli which are contiguous blocks, the
         determination of the compensation in respect of these lands also would be      C
         at the rate of Rs. 8,000 per acre.

                The appeal is accordingly allowed to the above extent. The appellant
         is entitled to solatium and interest on the enhanced compensation at the
         rates prevailing prior to the Amendment Act 68 of 1984. No costs.

         T.N.A.                                                     Appeal allowed.     D




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