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1. The Land Acquisition Officer/Sub- Collector, Tindivanam, is the appellant herein. The above appeal is preferred against the judgment and decree in L.A.O.P. No. 9 of 1983 dated 11.8.1986 on the file of the Subordinate Judge, Tindivanam.

2. At the instance of the 6th respondent, certain proposals were made for acquisition of lands of an extent of 2.44 acres in R.S. No. 236, etc., for the construction of Bus Depot to the 6th respondent/Corporation. The Notification under Section 4(1) of the Land Acquisition Act (hereinafter referred to as the Act) was published in the Tamil Nadu Government Gazette dated 11.06.1980 and the same was approved by the Government in GO. Ms. No. 623, Transport, dated 23.05.1980. The draft declaration under Section 6 of the Act and the draft direction under Section 7 of the Act have been published in the Tamil Nadu Government Gazette dated 15.07.1981 and duly approved by the Government in G.O.Ms. No. 726, Transport, dated 26.07.1981. The award enquiry under Section 11 of the Act was conducted by the Land Acquisition Officer at Tindivanam on 24.12.1981 and 11.01.1982. After due publication and service of the notices under Sections 9(1) and 10 of the Act and under Sections 9(3) and 10 of the Act, after giving sufficient time.

4. According to the appellant, the data field is similar in all respects to that of the acquired lands. This sale is reasonable and reflects the present market value of the acquired lands. As such, the value for the acquired lands is fixed at Rs. 87,778 per acre, which, according to the appellant, is reasonable.

5. The land in R.S. No. 236 measuring 2.29 acres stands registered in the names of Kuppuswami Naidu and Ethirajulu Naidu in the village accounts in Holding No. 737. The land owner who turned up for the enquiry claims higher compensation at the rate of Rs. 4,000 per cent. The appellant fixed the value of the acquired land at the rate of Rs. 87,778 per acre and arrived at the total amount at Rs. 2,01,011.60. The cost of the well, compound wall and other structures has been fixed at Rs. 56,129, and the value of the trees at Rs. 22.50. He also added 15% solatium, which comes to Rs. 38,574-45. In all, the total amount of compensation comes to Rs. 2,95,737.55. The amount payable to V. Kuppuswami Naidu after deducting the loan amount (principal and interest) payable to Susilabai Ammal was fixed at Rs. 2,56,862.55 (Rs. 2,95,737.55 minus Rs. 38,875 = Rs. 2,56, 862.55) As the land owner has demanded enhanced compensation, a reference under Section 18 of the Act was made to the Subordinate Judge, Tindivanam, by the appellant.

7. At the request of the claimants, the matter was referred to the Sub Court, Tindivanam. The 1st claimant/1st respondent herein filed a claim statement stating that the land in question is situated in the midst of the township surrounded by constructed houses and house sites, that the area is termed as an industrial area and licence was granted by the Tindivanam Municipality for running saw mill by the 1st respondent and in fact, he was running the saw mil. Because of the acquisition, the 1st respondent had to discontinue his business and dismantle the constructed shed and remove the materials. Despite the loss in dismantling the industry, the 1st respondent had sustained a loss of Rs. 1,00,000 in discontinuing the industry. These aspects were not considered by the appellant. Therefore, the 1st respondent claimed a sum of Rs. 2,00,000 by way of compensation apart from the value of the acquired property.

15. Point: - Ex.A-1 is the approved plan sanctioned by the Tindivanam Municipality for the land in R.S. No. 236 dated 6.4.1961. Ex.A-2 is the Tindivanam Municipal Town Map. Ex.A-3 dated 11.1.1979 is the proceedings of the Collector of South Arcot in K.Dis. No. 216124 of 1978 rejecting the application of the 1st respondent for the grant of a No Objection Certificate for locating a semi-permanent cinema in R.S. No. 236 of Tindivanam Town and Taluk. Ex.A-4 is the sale deed dated 12.6.1980 in favour of Pattabi Reddiar (P.W.2) by one Abdul Wahab Sahib. The sale consideration is Rs. 27,000.