Judgment

GOSWAMI, J. :- These two counter appeals by certificates are directed against the judgment of the Delhi High Court in a land acquisition case. The facts appearing from the judgment are as follows :

Harbans Lal Jain, the appellant, had purchased an area of land measuring 206 bighas and 11 biswas in village Duripur sometime in 1950. This land had a frontage on the Princess Raod off Kingsway and was behind the Model Town colony. In 1951-52 the appellant sold certain plots out of this land without getting any plans sanctioned by the appropriate authorities. On October 3, 1959 a notification under Section 4 of the Land Acquisition Act 1894 (briefly the Act) was made by the Government which ultimately culminated in the acquisition of 43 bighas 4 biswas out of this land. The Land Acquisition Collector (briefly the Collector) awarded compensation at the rate of Re. 1/- per square yard which was increased to Rs. 2/8/- per square yard by the Additional District Judge in the relevant reference case. The High Court of Punjab in appeal further increased the compensation to Rs. 8/- per square yeard by its judgment dated July 24, 1963. There was no further appeal to this Court against that order of the High Court of Punjab. In July 23, 1962, the Government issued another notification under Section 4 of the Act in respect of the remaining land comprising an area of 163 bighas and 7 biswas. The notification under Section 6 of the Act was made on September 13, 1962. The Collector by his award dated January 28, 1963, offered to the appellant Rs. 2,500/- per bigha as against his claim of Rs. 70,000/- per bigha. In this land there was an area of 4 bighas 10 biswas which was a nullah for which the Collector awarded Rs. 1000/- per bigha. After excluding the land which was the subject matter of previous ales by the appellant and the land covered by the nullah, there remained 76 bighas 6 biswas in respect of which the appellant prayed for a reference claiming at the rate of Rs. 70/- per square yard or Rs. 70,000/- per bigha. According to the appellant, in 1950-51-52 the appellant himself had sold various plots of land at rates varying between Rs. 4/- and Rs. 5/- per square yard. His case was that the value of the land at the time of the notification in 1962 was more than ten times the price prevailing in the years 1950-52. He also pointed out that the land in question was adjacent to the fully developed Model Town colony, where all services such as pucca road, electricity, water supply, sewage, etc. existed and where the price of the land was Rs. 100/- per square yard. It was also pointed out by the appellant that the land abutted on the Princes Road which is metalled road and had a potential value being situated in the best expanding locality. He further sated that the land was not in a low lying area, as held by the Collector, and was suitable for developing a colony and the compensation should have been awarded by the Collector at the rate of Rs. 70/- per square yard. The appellant claimed for a reference to the Court under Section 18 of the Act and the Additional District Judge, Delhi, by his judgment dated December 18, 1967, enhanced the compensation to Rs. 8/- per square yard basing his decision upon the earlier High Court judgment which we have already adverted to. Thereupon the appellant preferred an appeal to the Delhi High Court. The High Court enhanced the price of the acquired land to Rs. 10/- per square yard. Hence Civil Appeal No. 1106 of 1972 by certificate by the appellant. The respondent, Union of India, also being aggrieved by the judgment of the High Court filed a counter appeal, Civil Appeal No. 2355 of 1972, with certificate.

2. The reasons given by the High Court enhancing the price of the land may be quoted below :

"The argument is that the fair market price of a portion of this very land was fixed by the High Court at Rs. 8/- in 1959. Thereafter, there has admittedly been a trend of rise in the prices. The ratio of the ris