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

Citation: [1996] SUPP. 5 S.C.R. 494 · Decided: 03-09-1996 · Supreme Court of India · Bench: K. RAMASWAMY, FAIZAN UDDIN · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
K. PADMARAJU@ PADMANABHA RAJU AND ORS. 
B 
v. 
THE SENIOR REGIONAL MANAGER, F.C.l. HYDERABAD AND 
ORS. 
SEPTEMBER 3, 1996 
(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. 
E 
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 767-69 
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. 
G 
Y. Prabhakara Rao for the Respondents. 
The following Order of the Court. was delivered : 
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 
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. P ADMARAJU 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 
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 
B 
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. 
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 
E 
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

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