# K. KRISHNA REDDY AND ORS v. SPECIAL DY. COLLECTOR, LAND ACQUISITION UNIT II, LMD KARIMNAGAR, ANDHRA PRADESH

- **Citation:** [1988] Supp. 2 S.C.R. 853
- **Court:** Supreme Court of India
- **Decided:** 1988-09-08
- **Case number:** Civil Appeal Nos. 3159-3170of 1988
- **Bench:** G.L. Oza, K. Jagannatba Shetiy·
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/k-krishna-reddy-and-ors-v-special-dy-collector-land-acquisition-unit-ii-lmd-10040
- **Pages:** 6

## Headnote

Land Acquisition Act, 1894, ss. 4( 1) and 18-Award and
payment of compensation-To be made without delay-Appellate
power of remand-When to be exercised.
The appellants were awarded by the Land Acquisition Officer
compensation ranging from Rs.1,320 to 4,000 per acre depending upon
the nature of the land acquired in 1977. The District Judge enhanced
the compensation to Rs.85,000 per acre on the ground that compensa·
tion@ Rs.85,000 per acre under Award Ex. A.4 and Rs. 70,000 under
Award Ex. A.5 had already been awarded in respect of acquisition of
certain other similar lands situated in Karimnagar. However, the High
Court, in appeal, remanded the matter for fresh disposal and also
observed that the District Judge should exclude Ex. A.4 and Ex. A. 5
from consideration as the land concerned in those awards are not
comparable lands.
In appeals ·to this Court by Special Leave, it was contended on
behalf of the appellants that the mallet should not be remanded to the
District Judge, since the claimants. being small holders and agricul·
turists, are hard pressed and unable to fight another ro.und oflitigation
and that they are prepared to accept any compensation which this
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Court may think fit to award.
F
Allowing the appeals,
HELD: .(1) The Judgments of the High Court and the District
Judge are set aside. The compensation at the rate of Rs.25,000 per acre
regardless of categorisation would be sufficient to meet the ends of
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justice. It is needless to state that the claimants are entitled to manda·
tory solatium at 30% and also statutory interest. [857G-H]
2(i) It is of-utmost importance that the award should be made
without delay. The enhanced compensation must be determined without
loss of time. [857C]
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853
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854
SUPREME COURT REPORTS
[ 1988] Supp. 2 S.C.R.
2(ii) The appellate power of remand at any rate onght not to be
exercised lightly. It shall not be resorted to unless the award is wholly
unintelligible. It shall not be exercised unless there is total lack of
evidence. If remand is imperative, and if the claim for enhanced compensation is tenable, it would be proper for the appellate court to do
modest best to mitigate hardships. The appellate court may direct some
interim payment to claimants subject to adjustment in the eventual
award. [857C-D]
3. This is not a cas~ of no evidence. This is a case of both relevant
and irrelevant evidence mixed up together. Therefore irrelevant and
exaggerated claim must be excluded. [857F]
In the instant case, the location of lands will have to be borne in
mind while ascertaining the market value. The Commissioner has
stated that the lands are more suitable for house sites than for
agriculture. There is, no reason to discard this evidence and reject Ex.
A. 5 altogether. [856C-D]

## Text

K. KRISHNA REDDY AND ORS.
v.
SPECIAL DY. COLLECTOR, LAND ACQUISITION UNIT II,
LMD KARIMNAGAR, ANDHRA PRADESH
SEPTEMBER 8, 1988
[G.L. OZA AND K. JAGANNATBA SHETIY· JJ.]
Land Acquisition Act, 1894, ss. 4( 1) and 18-Award and
payment of compensation-To be made without delay-Appellate
power of remand-When to be exercised.
The appellants were awarded by the Land Acquisition Officer
compensation ranging from Rs.1,320 to 4,000 per acre depending upon
the nature of the land acquired in 1977. The District Judge enhanced
the compensation to Rs.85,000 per acre on the ground that compensa·
tion@ Rs.85,000 per acre under Award Ex. A.4 and Rs. 70,000 under
Award Ex. A.5 had already been awarded in respect of acquisition of
certain other similar lands situated in Karimnagar. However, the High
Court, in appeal, remanded the matter for fresh disposal and also
observed that the District Judge should exclude Ex. A.4 and Ex. A. 5
from consideration as the land concerned in those awards are not
comparable lands.
In appeals ·to this Court by Special Leave, it was contended on
behalf of the appellants that the mallet should not be remanded to the
District Judge, since the claimants. being small holders and agricul·
turists, are hard pressed and unable to fight another ro.und oflitigation
and that they are prepared to accept any compensation which this
A
B
c
D
E
Court may think fit to award.
F
Allowing the appeals,
HELD: .(1) The Judgments of the High Court and the District
Judge are set aside. The compensation at the rate of Rs.25,000 per acre
regardless of categorisation would be sufficient to meet the ends of
G
justice. It is needless to state that the claimants are entitled to manda·
tory solatium at 30% and also statutory interest. [857G-H]
2(i) It is of-utmost importance that the award should be made
without delay. The enhanced compensation must be determined without
loss of time. [857C]
H
853
A
B
c
D
E
854
SUPREME COURT REPORTS
[ 1988] Supp. 2 S.C.R.
2(ii) The appellate power of remand at any rate onght not to be
exercised lightly. It shall not be resorted to unless the award is wholly
unintelligible. It shall not be exercised unless there is total lack of
evidence. If remand is imperative, and if the claim for enhanced compensation is tenable, it would be proper for the appellate court to do
modest best to mitigate hardships. The appellate court may direct some
interim payment to claimants subject to adjustment in the eventual
award. [857C-D]
3. This is not a cas~ of no evidence. This is a case of both relevant
and irrelevant evidence mixed up together. Therefore irrelevant and
exaggerated claim must be excluded. [857F]
In the instant case, the location of lands will have to be borne in
mind while ascertaining the market value. The Commissioner has
stated that the lands are more suitable for house sites than for
agriculture. There is, no reason to discard this evidence and reject Ex.
A. 5 altogether. [856C-D]
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos.
3159-3170of 1988.
From the Judgment and Order dated 30.12.1985 of the Andhra
Pradesh High Court in Appeal No. 2578 to 2583 of 1985.
K. Rajendra Chowdhary and A. Sobba Rao for the Appellants.
P.A. Choudhary, T.V.S.N. Chari, Mrs. Sunita Rao, Badrinath
and K. Ram Kumar for the Respondent.
F
The Judgment of the Court was delivered by
.TAGANNATHA SHETTY, J. We grant Special Leave and proceed to dispose of these appeals.
These appeals are from a judgment dated 30 December, 1985 of
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the High Court of Andhra Pradesh in a batch of appeals arising out of
land acquisition proceedings. The lands in question are situated in
Hasanapur of Karimnagar Taluk. The lands are acquired for the
purpose of submergence under Lower Manair Dam Reservoir project.
Section 4(1) notification was issued on 24 March, 1977. The land
acquisition officer by his award dated 15 July, 1978 awarded compenH
sation ranging from Rs.1320 to 4,000 per acre depending upon the
K.K. REDDY v. SPECIAL DY. COLLECTOR [SHETIY, J.[
855
nature of the land and the crop grown thereon. The District Judge on a
reference under s. 18 of the Act enhanced the compensation to
Rs.85,000 per acre regardless of categorisation. The High Court by the
Judgment under appeals herein has remanded the matter for fresh
disposal with liberty for both parties to adduce additional evidence.
The High Court has specifically observed that the District Judge
should exclude Ex. A. 4 and Ex. A. 5 from consideration. Ex. A. 4
and Ex. A. 5 are the awards pertaining to acquisition of certain lands
situated in Karimnagar. Thereunder, compensation at the rate of
Rs. 85,000 per acre under Ex. A.4 and Rs. 70,000 under Ex. A.5 were
given. The High Court has observed that the lands concerned in those
awards are not comparable lands.
Hence these appeals.
The first question that arises for consideration is whether Ex. A.5
should be altogether excluded or it should be kept open for being
considered by the District Judge on merits. This is the specific question
on which this Court issued notice on the Special Leave petition. If first
part of the question is answered in the negative, then the second question for consideration is whether the matter should go back to District
Judge for fresh disposal.
We heard counsel on both sides on the merits of the entire
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matter.
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The claimants have alleged that the lands acquired are fit for
residential houses as they are adjacent to industrial estate,
MARKFED factory, Vanaspathi complex, diary farm and Padmanagar colony. The lands have potentiality of being used as house sites
and the like of which was sold for Rs.5,000 per gunta prior to the
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present acquisition. The lands are near to Karimnagar town. The town
is developing into a modern town in Andhra Pradesh, with a lot of
industrial, commercial, educational activities. They have claimed compensation at Rs. 1,60,000 per acre for dry lands and a little more for
wet lands.
The evidence in support of their claim consists of the testimony
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of one of the claimants (PW 1). He has given a rosy picture of the
location and value of the lands. Another witness (PW 2) has corroborated the version of PW 1. Besides we have the evidence of a
Commissioner. Mr. G. Santosh Reddy Advocate was appointed as
Commissioner in this case. He has filed his report Ex. A. 7 and Plan
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·Ex.A.8.
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856
SUPREME COURT REPORTS
I l988] Supp. 2 S.C.R.
The High Court appears to have brushed aside all that evidence.
The High Court compared the combined map of Karimnagar and
Hasnapur village (Ex. A.3) with the sketch map (Ex. A.8) prepared by
the Commissioner. The High Court was of opinion that the larids
concerned in Ex.A.5 are abutting Karimnagar town. They are close to
MARKFED and other industrial institutions and buildings, but not the
lands in question. The Hi°gh Court said: "whereas admittedly the lands
in question are 3 kms from Karimnagar town". This statement has
been seriously disputed before us. It is said that the claimants or their
counsel did not admit, and indeed could not have made that admission
suicidal to their case.
Be that as it may, the distance determined by the High Court
whether on admission or by comparison of village maps makes little
difference. The distance from Karimnagar town should not be a
ground to reject Ex. A.5. If the lands are suitable for house sites, Ex.
A.5 would still be relevant. The location of lands will have to be borne
in mind while ascertaining the market value.
As to the nature of lands we have the evidence of the Commissioner. He is an Advocate of the local Bar. He had gone to the spot.
He had a topographic surveying. According to his evidence, the lands
in question are similar in nature and of value as the lands covered
under the Award Ex. A.5. The lands are nearer to collectorate compE
lex, RTC Bus stand and other housing complex. He has stated that the
lands are more suitable for house sites than for agriculture. There is,
no reason to discard this evidence. We cannot therefore, reject Ex.
A.5 altogether.
The next question for consideration is whether it is now necesF
sary to keep the remand order undisturbed. Counsel for the claimants
is totally against the matter being sent back to the District Judge. He
urged that the claimants are small holders and agriculturists. They are
hard pressed and unable to fight another round of litigation. They are
prepared to accept any compensation which this Court may think fit to
award. This plea of the counsel has an appealing simplicity. It reflects
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the facts of life and problems of litigation.
We can very well appreciate the anxiety and need of claimants to
get compensation here and now. No matter what it is. The lands were
acquired as far back in 1977. One decade has already passed. Now the
remand means another round of litigation. There would .be· further
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delay in getting the compensation. After all money is what money
K.K. REDDY v. SPECIAL DY. COLLECTOR [SHETTY, J.]
857
buys: What the claimants could have bought with the compensation in
1977 cannot do in 1988. Perhaps, not even one half of it. It is a
common experience that the purchasing power of rupee is dwindling.
With rising inflation, the delayed payment may, lose all charm and
utility of the compensation. In some cases, the delay may be detrimenA
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tal to the interests of claimants. The Indian agriculturists generally
have no avocation. They totally depend upon land. If uprooted, they
will find themselves nowhere. They are left high and dry. They have no
savings to draw. They have nothing to fall back upon. They know no
other work. They may even face starvation unless rehabilitated. In all
such cases, it is of utmost importance that the award should be made
without delay. The enhanced compensation must be determined without loss of time. The appellate power of remand, at any rate ought not
to be exercised lightly. It shall not be resorted to unless the award is
C
wholly unintelligible. It shall not be exercised unless there is total lack
of evidence. If remand is imperative, and if the claim for enhanced
compensation is tenable, it would be proper for the appellate court to
do modest best to mitigate hardships. The appellate court may direct
some interim payment to claimants subject to adjustment in the
eventual award.
Counsel for the State argued that there is no material on record
for this Court to determine compensation and the remand may be
useful for the claimants themselves. He however, reluctantly indicated
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his own estimate of the market value in the event of this Court giving a
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quietus to the litigation.
It seems to us that this is not a case of no evidence. This is a case
of both relevant and irrelevant evidence mixed up together. We must
exclude the irrelevant and exaggerated claim. The claimants have not
justified the award generously given by the District Judge. Rs.85,000 F
per acre appears to be on the high side as against the award Ex. A.5. In
the first place, Section 4 notification concerned in that Award was
dated 16 February 1978. It was almost a year after the notification in
these cases. Secondly, the lands therein were close to the town of
Karimnagar. The situation is not similar in this case. Here the lands
are 3 kms awy from Karimnagar town. It is in this background we have G
carefully considered the rough estimates given by counsel on both
sides. We have also examined the relevant material. A distance of 3
kms from a growing town of District headquarters should not however,
make a world of difference. We are of opinion that the compensation
at the rate of Rs.25,000 per acre regardless of categorisation would be
sufficient to meet the ends of justice. It is needless to state that the
H
858
SUPREME COURT REPORTS
[1988] Supp. 2 S.C.R.
A claimants are entitled to mandatory solatium at 30 per cent and also
statutory interest.
B
In the result, we allow these appeals and set aside the judgments
of the High Court and District Judge. There shall be an award in terms
as indicated above. In the circumstances of the case, we make no order
as to costs.
M.L.A.
Appeals allowed.