JUDGMENT

Thakker, J.-Leave granted.

2. This appeal by special leave is directed against the judgment and order dated July 3, 2001 in First Appeal No. 758 of 1988 by the High Court of Judicature at Bombay partly allowing the appeal of the claimants for grant of enhanced compensation.

3. The brief facts of the case are that the respondent-claimant, the Indian Standard Metal Company Limited ("Company" for short) owned various pieces of land admeasuring about 21 hectres and 31.5 acres (2,13,150 Sq. Mtrs.) located at village Wadghar in Taluka Panvel of District Raigard in Maharashtra. Those lands were acquired by the State Government for New Bombay Project by issuing notification dated February 3, 1970 under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as "the Act") which was published in Government Gazette on February 4, 1970. Corrigendum dated September 5, 1970 was published in Government Gazette on September 7, 1970. Thereafter, notification under Section 6 of the Act was issued on October 25, 1972 which was published in Government Gazette on December 7, 1972. Notices under Section 9(1) and 9(2) of the Act were issued on May 10, 1973 and were published in Government Gazette on May 21, 1973 and May 10, 1973 respectively. Individual notices under Section 9(3) and 9(4) were also issued on October 10, 1975 which came to be served on respondent-Company on October 16, 1975. Respondent-Company claimed compensation @ Rs. 20/- per square yard for non-agricultural land and @ Rs. 15/- per square yard for agricultural land. The Special Land Acquisition Officer, Metro Centre No. 1, Panvel passed an award under Section 11 of the Act on February 22, 1985 and fixed the market value of the land including trees, construction, solatium and additional compensation etc. as Rs. 7,40,832.67 ps thereby fixing the market value of the land at Rs. 1.10 ps. per sq. mtr. An amount of Rs. 7,40,832.75 was paid to the claimants on February 25, 1985 and possession of the entire land was taken over.

9. After receipt of notice under Section 12(2) of the Act, being dissatisfied with the award, the claimant-respondent-Company filed a Land Reference being LAR No. 189 of 1986 under Section 18 of the Act before the Special Land Acquisition Officer requesting him to forward the same to the Civil Court for adjudication and claimed compensation for entire land at the uniform rate of Rs. 15/- per sq. meter. Thus, additional amount of Rs. 29,58,790/- was claimed. The appellant-State filed its written statement before the Civil Judge, Senior Division, Raigad at Alibag in the Reference. In the Land Reference, respondent-Company examined its Power of Attorney holder Balchandra Shantaram Sule as C.W. 1 as also Jeewan Naraya Kulkarni as C.W. 2, valuer who visited the land in August-September, 1986. The Civil Judge, Raigad by an order dated April 18, 1987 awarded compensation @ Rs. 1.80 per sq. meter. Thus, additional amount of Rs. 5,09,103.60 together with interest @ 9% for first year and @ 15% for subsequent years was granted.

5. Dissatisfied with the quantum of compensation, the respondent-Company preferred First Appeal No. 758 of 1988 before the High Court of Bombay and claimed compensation at the uniform rate of Rs. 15/- per sq. meter. Claimant-respondent also filed Civil Application No. 930 of 1992 in pending First Appeal No. 758 of 1988 seeking permission to produce additional evidence and also sought amendment by claiming enhanced compensation @ Rs. 45/- per sq. meter. The High Court by the impugned order dated July 3, 2001 awarded enhanced compensation of the acquired land @ Rs. 12.50 per sq. meter for entire land by deducting development charges @ 20%. It was observed by the High Court that location of the land was near several important places and assessing the market value of those lands compensation had to be awarded in consonance with the industrial growth in the vicinity. The Court stated that N.A. potentiality of the land was also required to