IMPORTANT POINT
Merely because higher compensation was given for lands situated in a neighbouring village does not entitle same compensation.

JUDGMENT

Sen, J.-Leave granted.

2. This group of appeals relates to assessment of compensation for land acquired in the village Keshopur by the Union of India by two notifications dated 13.11.1959 and the other dated 24.10.1961 under Section 4 of the Land Acquisition Act (hereinafter referred to as the Act ).

3. So far as the land acquired under notification dated 13.11.1959 was concerned, the Land Acquisition Collect or divided the acquired land into two Blocks - A and B - and fixed compensation for Block A land at Rs. 600/- per bigha and for Block B land at Rs. 300/- per bihga. On reference under Section 18 of the Act, the Additional District Judge raised the amount of compensation to Rs. 3,500/- per bigha for Block A and Rs. 3,000/- per bigha for Block B.

4. The High Court took into consideration various factors including compensation for similar lands acquired by the Government where compensation was fixed at a much higher rate. The High Court noticed that the instances cited by the appellants were of the land situated in Chokhandi, whereas the dispute of the present case related to lands in a different village Keshopur. The High Court also took into notice from the facts produced before it that in the neighbourhood of this village prices of the lands were showing an upward trend. The lands were being brought and sold by people for purposes of building houses. Small plots were being sold. Sale of small plots indicated that the land in village Keshopur had potentiality as a building site. The High Court, therefore, was of the view that no distinction should be drawn between the land falling under Block A and Block B. The High Court, therefore, fixed market value of the land acquired pursuant to the notification dated 13.11.1959 at Rs. 7,000/- per bigha.

5. For the land acquired pursuant to the notification dated 24.10.1961, the Land Acquisition Collector had divided the land into three Blocks - Block A, Block B and Block C - and fixed the compensation at the rate of Rs. 1,000/-, Rs. 600/- and Rs. 400/- per bigha respectively. On reference the Additional District Judge fixed the market value on the same basis as he had done for the land acquired under the previous notification dated 13.11.1959.

6. The High Court, however, raised the compensation to Rs. 8,000/- per bigha and gave the following directions:-

"In addition to the market value the appellants will be entitled to an additional amount at the rate of 15% per annum on the market value in terms of section 23 (1-A) as amended by the Land Acquisition (Amendment) Act, 1984 from the date of notification under section 4 of the Land Acquisition Act (the Act) till the date of the making of the award or taking possession, whichever is earlier. The appellants will be further entitled to solatium at the rate of 30% on the market value under the amended law.

Further the appellants will be entitled to interest at the rate of 9% per annum for a period of one year from the date of taking possession and thereafter at the rate of 15% per annum till payment on the excess amount, that is, the amount which was increased by the Addl. District Judge and now by this court because that is the excess in terms of section 28 of the Act as amended. Whatever has already been paid either towards the market value or solatium or interest will be deducted.

As there is a difference of more than three years between the notification under Section 4 (13.11.1959) and the declaration under Section 6 (17.8.64) of the Act in R.F.A. 369/70 (Jai Prakash v. Union of India) the appellants in R.F.A. 369/70 will also be entitled to interest at the rate of 6% per annum on the market value of the land under Section 4(3) of the Land Acquisition (Amendment and Validation) Act, 1967 provided there is no overlapping in the payment of interest under Section 28 of the Act and Section 4(3) of the Amendment Act of 1967. They will also be entitled to proportionate costs.

In R.F.A. 527/70 t