High Court · 2025

HON'BLE SRIJUSTICE ABHINAND KUMAR SHAVILI AND HON'BLE SMT. JUSTICE TIRUMALA DEVIEADA APPEAL SUIT No.3980 of 2003 JUDGMENT: (per Hon'ble Smt. Justrbe Tirumala Devi Eada) This appeal, under Section 54 of the Land Acquisition Act, 1894, (for short 'the Act') is preferred by the Revenue Divisional Officer, Adilabad, aggrieved by the order and decree dated

17.07 .2003 passed in O P No BT of 1999 by the learned Senior Civil Judge at Adilabad (hereinafter referred to as 'the Reference Court').

2. For convenience and clarity, the parties herein are referred to as they were arrayed before the Reference Court.

3. The facts of the case in brief are that the land to an extent of Ac.0'l-29 guntas situated at Ratnapur Village of Talamadugu Mandal was acquired. The draft notification under Section 4(1) of the Act was approved on 20.08.1997. After conducting due enquiry, since there was no sales statistics available as the property is situated in scheduled area, the Land Acquisition Officer has fixed the market value based on the yield of the land by following ) capitafzation method. He has taken the value of cotton for three years from the date of approval of notification i.e. for the year 1gg4-;r 2 ar(s,J & ETO,J AS 3980 2m3 I 95, 1995-96 and 1996-97 @ Rs.2008/-, 17201-,16711- respectively l per quintal of cotton. He has also considered the yield of red gram and the average rate for the three years was adopted as Rs.18001 per quintal in respect of cotton yield and Rs.12834 per quintal for the red gram. Thus, he arrived at a rnarket value of Rs.4242t- per acre. According to him, the value of two quintals of cotton is worth Rs.3,600/- and yield of red gram was taken as Rs.642l- and thus, total income per year is calculated as Rs.424Z-. After deductlng half of the value towards investment; Rs.21211- was held to be the net income, by taking into consideration the multiplier'3', the value was arrived at Rs.6363/- and LAO has awarded Rs.6O00/- per acre apart from statutory benefits. Aggrieved by tlre said award, the claimants have made an application and the sarne was referred under Section 18 of the Act to the Court of Senior Civil Judge, Adilabad.

4. The case of the claimants is that they used to earn net income of Rs.5000/- per acre after deduclhrg all the expenses and thus, they sought a compensation of Rs.3O,000/- per acre before the reference Court. I / I ,A / / 3 AKs,J & fiO,J AS 3980 2003

5. Based on the above pleadings, the Reference Court has framed the following points for consideration: ,1 Whether the claimants are entitled for enhancement of compensation for their acquired lands if so to what extent? 2 Whether the claimants are entitled for statutory benefits as prayed for?

3. To what relief?"

6. At the time of trial, the claimants got examined PW1 and got marked Exs.A1 to A3. On behalf of the LAO, RWI was examined and Ex.B1 was marked. Based on the evidence on record, the reference Court has enhanced the compensation to Rs.10,000/- per acre, apart from statutory benefits and that there shall be interest on the aggregate compensation amount i.e. market value, 12o/o additional Market value and 30% solatium, from the date of possession i.e. 31.05.1995 upto the date of payment at the rate of 9% per annum for first one year and thereafter at the rate of 15% per annum. Aggrieved by the said order, the present appeal is preferred by the LAO

7. Heard the submissions of learned Government Pleader for thepppellant. The learned Government Pleader has submitted that \ the reference Court has granted interest on interest, it has awarded l 4 A(sJ & ETDJ AS_3980_2003 12o/o additional market value from the date of possession i.e. from

31.05.1995 till the date of award i.e.03.07.1998 and further has held that there shall be interest on the aggregate compensation including 12o/o additional market value.

8. Based on the above submissions, this Court frarnes the following points for consideration: 1 Whether the order and decree passed by the reference Court is sustainaUe in law and under the facts?

2. To what relief? ..

9. POTNT NO.1: a) The grievance of the appellant is that the reference Court has wrongly applied the principle of granting interest and that the reference Court has awarded interest on the aggregate compensation amount including 12olo additional market value, that means the petitioners are already awarded 12% additional market value on the enhanced rate of compensation i.e. Rs.1OO00/- per acre, in addition to that the reference Court has awarded 906 of interest on the compensation amount and also the additional market value. I i I I I //'t /, 5 AKs,J & ETOJ AS_3980_2003 b) lt is pertinent to refer to the principles laid down in the statute. Section 23(1-A) and Section 28 are extracted hereunder the sake of / reference: '23.(1-A) ln addition to the market value of the land, as above, the Court shall in every case award an amount calculated at the rate of twelve per centum per annum on such market value for the period commencing on and from the date of the publication of the notification under Section 4 Sub-Section (1), in respect of such land to the date of the award of the Collector or the date of taking possession of the land, whichever is earlae/'.

28. Collector may be directed to pay interest on excess compensation. - lf the sum, which the Collector did award as compensation, the award of the Court may direct that the collector shall pay interest on such excess at the rate of [nine per cenlum] per annum from the date on which he took possession of the land to the date of payment of such excess into Court: lProvided that the award of the Court may also direct that where such excess or any part thereof is paid into Court after the date or expiry of a period of one year from the date on which possession is taken, interest at the rate of fifteen per centum per annum shall be payable from the date of expiry of the said period of one year on the amount of such excess or part thereof which has not been paid into Court before the date of such expiry.l c) Thus, a plain reading of Section 23(1-A) would infer lhal 12o/o of additional market value has to be awarded from the date of publication of notification under Section 4(1) to the date of the award of Collector or the date of taking possession of the land, whichever is earlier. d) Further, it lays down that the interest shall be granted on the enhanced compensation @9o/o per annum for the first one year i.e. frgm the date of possession and then @ lSVo till the date of I 6 A(S,J & ETO,J AS_3940-2m3 realization. lt nowhere specifies that interest has to be awarded again on the additional market value e) Therefore, the reference Court has erred in awarding interest on the additional market value also. Hence, the order passed by the reference Court is liable to be modified only to that extent of deleting the aggregate interest on the 12% additional market value while awarding compensation. Point No.'1 is answered acoo'rdingly.

10. POTNT NO.2: ln view of the reasoned finding arrived at Point No.1 , it is tpld that the claimants are entitled to the enhanced compensation but not interest on the aggregate compensation amount and the order and decree of the reference Court needs to be modified only to that extent

11. POINT NO.3: ln the result, the appeal is partly allowed. The order and decree dated 17.07.2003 passed in O.P.No.B7 of 1999 by the learned Senior Civil Judge at Adilabad is modified to the extent of deleting the interest on the aggregate compensation amount, wlt'le the other aspects of the order of the reference Court sdand confirmed. No costs I =/ / I 7 AKSJ & ETDJ AS_3980_2003 Miscellaneous petitions pending, if any, shall stand closed. SD/. T. KRISHNA KUMAR JOINT REGISTRAR //TRUE COPY// / N OFFICER To,

1. The Court of the Senior Civil Judge Court, Adilabad.

2. Two CCs to the Government Pleader for Appeals, High Court for the state of Telangana, at Hyderabad. [OUT]

3. Two CD Copies Svs/sa Yr I I I I i i I I I I HIGH COURT DATED:1410812025 JUDGMENT + DECREE AS.No.3980 of 2003 STATE ut ttB T6 6-\ l;r :.J ,,,.,.- * DESI' PARTLY ALLOWING THE APPEAL SUIT, WITHOUT COSTS

6."fD &* t 3/145 l IN TI{E HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE FOURTEENTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE ABHINAND KUMAR SHAVILI AND THE HONOURABLE SMT JUSTICE TIRUMALA D€VI EADA FIRST APPEAL NO: 3980 OF 2003 Between : The Revenue Divisional Officer, Land Acquisilion Officer, Adilabad. ...Appellant/Respondent AND

1. P.Raghu, S/o.Manku Rl/o.Ratnapur (village), Talamdur (mandal), Adihbad District.

2. P.Shyam Rao, S/o.Manku R/o.Ratnapur (village), Talamdur (mandal), Adilabad Distric{.

3. P.Chitru, S/o.Manku Rlo.Ratnapur (village), Talamdur (mandal), Adilabad District. ...Claimants/Respondents Appeal under section 54 of L.A Act of 1894 against the Judgrnent and Decree Dated 17 n BOO3 made in O.S.No.87 of I 999 on the file of the Court of the Senior Civil Judge Court, Adilabad. This appeal comirp on for hearing and upon perusing the grounds of appeal, the Judgrnent and Decree of the Lower Court and the material papers in the case and upon hearing the arguments of Government Pleader for Appeals on behalf of Appellant and None appeared for the Respondent. This Court doth Order and Decree as follows: (

1. That the Appeal suit No.3980 of 2003 be and hereby is partly allowed. 2. That the order and decree dated 17 .07 .2003 passed in OP No.87 of 1999 by the learned Senior Civil Judge at Adilabad is modified to the extent of deleting the interest on the aggregate compensatlon amount, while the other aspects of the order of the reference court stand confirmed.

3. That there shall be no order as to costs in this appeal. //TRUE COPY// SD/- T. KRISHNA KUMAR JOINT REGIS \f= ECTION OFFICER To,

1. The Court of the Senior Civil Judge Court, Adilabad. 2. Two CD Copies Svs/sa Yt- HIGH COURT DATED:1410812025 DECREE AS.No.3980 of 2003 PARTLY ALLOWING THE APPEAL SUIT, WITHOUT COSTS 11 "4tet Y& Gfrf*s