Judgment :- 1. This appeal by the claimant is directed against the judgment and award dated 30th September 2005 passed in L.A.C.No.2/2002, by the Civil Judge (Sr.Dn) and Additional CJM, Arsikere (hereinafter referred to as “the Reference Court”), on the ground that the compensation awarded by the said Court is inadequate and needs enhancement. 2. By its impugned judgment and award, the Reference Court awarded a sum of Rs.2,00,000/- with statutory benefits, as envisaged under the provisions of Section 23 of the Land Acquisition Act (hereinafter referred to as “the Act” for short), in respect of site in question, measuring 15 ft. x 20 ft., taking the escalation of the market value at 5% per annum. Being aggrieved by the same, the claimant/appellant has presented this appeal, seeking enhancement of compensation. 3. Facts in a nutshell are that, the site bearing No.372 and Khata No.455, measuring 15 ft. x 20 ft., situate on the National Highway, opposite KSRTC Bus stand at Arasikere, was notified and acquired by the competent authority for formation of road leading to KSRTC bus stand from National Highway, vide Preliminary Notification dated 31st March 2000, issued under Section 4(1) of the Act, followed by final declaration under Section 6(1) of the Act. The Assistant Commissioner and Land Acquisition Officer, after issuing notice under Sections 9 and 10 of the Act and after affording opportunity to the claimant as also the beneficiary, passed an award on 3rd October 2001, awarding a sum of Rs.1,00,000/- in respect of the site in question. Not being satisfied with the award passed by the said authority, the claimant/appellant filed an application under Section 18(1) of the Act, before the Reference Court, seeking enhancement of compensation and the same was registered as L.A.C.No.2/2002. The said application came up for consideration before the Reference Court on 30th September 2005. The Reference Court, strongly relied upon Ex.P3, judgment passed in L.A.C.No.9/1998 dated 1st March 2002 in respect of site bearing Khata No.373, measuring 15 ft. x 20 ft. situate near B.H. Road, Arasikere Bus Stand, Arasikere Taluk, Kasaba Hobli, which was notified and acquired by the competent authority for the purpose of free vehicular movement. In the said judgment, the Reference Court has awarded compensation of a sum of Rs.1,60,000/- in respect of the site situate in the same vicinity. x 20 ft. situate near B.H. Road, Arasikere Bus Stand, Arasikere Taluk, Kasaba Hobli, which was notified and acquired by the competent authority for the purpose of free vehicular movement. In the said judgment, the Reference Court has awarded compensation of a sum of Rs.1,60,000/- in respect of the site situate in the same vicinity. Therefore, the Reference Court, relying upon the same, and taking into consideration the potentiality of the site and other relevant aspects, determined the market value of the site in question at the rate of Rs.2,00,000/- with all statutory benefits, taking the annual escalation in market value at 5%. Not being further satisfied with the market value determined by the Reference Court, the claimant/appellant has presented this appeal, seeking further enhancement of compensation. 4. We have gone through the grounds urged in the memorandum of appeal and heard learned Additional Government Advocate appearing for first respondent and perused the entire original records placed before us. 5. It is the specific case of the appellant that, the Reference Court ought to have taken into consideration the commercial potentiality of the site in question, inasmuch as the same is situate adjacent to KSRTC bus stand at Arasikere and facing B.H. Road, which is a National Highway and it is in the heart of the city and that the market value of similar sites is not less than Rs.1,500/-per sq.ft. Further, the appellant has taken a specific ground in the memorandum of appeal that, in respect of a preliminary Notification issued during 1989, in respect of adjacent property, the Reference Court has determined the market value at the rate of Rs.1,60,000/-. But, while determining compensation in respect of the site in question, which is a corner site and has higher commercial potentiality, which is notified and acquired by preliminary Notification issued during 2000, the Reference Court has erred in determining the market value at a sum of Rs.2,00,000/-, with all statutory benefits, taking the annual escalation in market value at only 5%. The same is not proportionate to the potentiality of the site in question. Therefore, it is the case of the appellant that, the Reference Court, taking annual escalation in market value at the rate of 15%, ought to have determined the market value instead of taking escalation in market value at 5%. The same is not proportionate to the potentiality of the site in question. Therefore, it is the case of the appellant that, the Reference Court, taking annual escalation in market value at the rate of 15%, ought to have determined the market value instead of taking escalation in market value at 5%. Therefore, the appellant has prayed for modification of the impugned judgment and award and for determination of reasonable market value taking the annual escalation in market value at 15% for a period of 11 years from 1989 to 2000. 6. As against this, learned Additional Government Advocate appearing for first respondent inter alia sought to justify the impugned judgment and award passed by the Reference Court, stating that the Reference Court, after due consideration of the relevant material available on file and after appreciation of the oral and documentary evidence and also placing reliance on Ex.P3, judgment passed in respect of adjacent property in L.A.C.No.9/1998, and taking annual escalation in market value of the site at the rate of 5%, has rightly awarded the compensation of Rs.2,00,000/- with all statutory benefits and hence, it does not call for interference. 7. After careful evaluation of the original records available on file threadbare, it emerges that the Reference Court has heavily relied upon Ex.P3, judgment passed in L.A.C.No.9/1998 dated 1st March 2002 in respect of site bearing Khata No.373, measuring similar extent, situate in the same locality of the site in question. In the said judgment, the Reference Court has awarded compensation of a sum of Rs.1,60,000/-with all statutory benefits. In the case on hand, it is relevant to note that, the specific case of the claimant is that, her husband had obtained a licence for constructing a commercial complex and on account of his untimely death, it did not materialize and thereafter the said site has been notified and acquired by the competent authority for the purpose of providing road leading to KSRTC bus stand from National Highway. Admittedly, the site in question is a corner site situate in the heart of the city, i.e. KSRTC Bus Stand at Arasikere. The Reference Court, without noticing the commercial potentiality of the site in question, has determined the compensation at Rs.2,00,000/-with all statutory benefits, relying upon Ex.P3, judgment in L.A.C.No.9/1998, in respect of site situate in the same vicinity, taking the annual escalation in market value at the rate of 5%. The Reference Court, without noticing the commercial potentiality of the site in question, has determined the compensation at Rs.2,00,000/-with all statutory benefits, relying upon Ex.P3, judgment in L.A.C.No.9/1998, in respect of site situate in the same vicinity, taking the annual escalation in market value at the rate of 5%. Having regard to the commercial potentiality of the site in question and also the fact that the husband of the claimant had obtained a licence for construction of a commercial complex, we are of the considered view that, the Reference Court, at best could have taken the annual escalation in market value at the rate of 10%, while determining the market value of the site in question. However, the case of the appellant that she is entitled to enhancement of compensation with annual escalation in market value at 15% is disproportionate to the potentiality of the site in question and cannot be considered. 8. Further, it is relevant to note that, the Hon’ble Apex Court in the case of Land Acquisition Officer and Revenue Divisional Officer Vs. Ramanjulu [ (2005) 9 SCC 594 ], has considered annual escalation in the market value at 10%. Therefore, safely placing reliance on the principle enunciated in the said judgment and having regard to the nature of site, commercial potentiality, the escalation in market value of the site in question for a period of eleven years from 1989 to 2000 and also the fact that the husband of the claimant had obtained a licence for constructing a commercial complex in the said site, we deem it fit and appropriate to assess the annual escalation in market value at 10%, to safeguard the interest of the claimant as also the beneficiary and also to meet the ends of justice. 9. Thus, the claimant/appellant would be entitled to compensation as follows: The market value determined by the Reference Court as per Ex.P3, judgment in LAC NO.9/1998 in respect of the site located in the same vicinity as that of the site in question, notified and acquired under preliminary Notification issued during 1989, is Rs.1,60,000/-. In the instant case, the preliminary Notification is issued during 2000. Thus, as already noticed, if 10% escalation in market value (i.e. Rs.1,60,000/-x 10% x 11 years = Rs.1,76,000/-) is added to Rs.1,60,000/-, the compensation to which the claimant/appellant is entitled would be Rs.3,36,000/- with all statutory benefits. 10. In the instant case, the preliminary Notification is issued during 2000. Thus, as already noticed, if 10% escalation in market value (i.e. Rs.1,60,000/-x 10% x 11 years = Rs.1,76,000/-) is added to Rs.1,60,000/-, the compensation to which the claimant/appellant is entitled would be Rs.3,36,000/- with all statutory benefits. 10. In the light of the facts and circumstances of the case, stated above, the appeal filed by claimant/appellant is allowed-in-part. The impugned judgment and award dated 30th September 2005 passed by the Reference Court, in L.A.C.No.2/2002, is hereby modified, awarding a sum of Rs.3,36,000/-as compensation in respect of the site in question, with all statutory benefits envisaged under the provisions of Section 23 of the Act.