Judgment

K. RAMASWAMY,J.:- This batch of 28 Appeals are against the common judgment and decrees of the Kerala High Court in A.S. No. 487 of 1969 etc. dated January 22, 1973 and leave under Art. 136 was granted by this Court on March 14, 1974. The High Court reversed the awards and decrees of land acquisition, Sub Court, Ernakulam and confirmed the separate awards of the Collector dated March 29,1962. The notification under Section 4(l) of the Kerala Land Acquisition 1089 for short "the Regulation" was published on October 31, 1961 and the declarations which are the relevant dates for determining the market value by operation of Section 22(l) was published on October 31, 1961 and February 22, 1962. The land acquired was 190.37 acres and 15.48 acres for Periyar Valley Irrigation Project and Phyto-Chemicals Project both being public purposes. The Collector determined the market value at Rs. 0.04 per cent for certain lands and Rs. 0. 12 per cent for certain other lands, Rs. 30 per cent to the wet lands as against the claim of Rs. 40 and 50 per cent and compensation to the trees as timber value was given, The total Compensation fixed was Rs. 4.84 lakhs. Dissatisfied therewith the appellant sought reference under Section 18 thereof. They also claimed separate value as fruit bearing trees on potential value. They also claimed charges for severance and injurious effects on the remaining land. The Civil Court after adduction of evidence and on consideration thereof enhanced the market value to the lands @ Rs. 40.50 as claimed in addition to a sum of Rs. 30 to 38 percent. It awarded in all Rs. 20.20 lakhs on all counts including severance and injurious effects and 15 per cent solatirum and also 6 per cent interest on additional compensation from the date of taking possession till date of payment vide page 3 of short notes of the appellant. On appeals by the State, by common judgment dated January 22, 1973, the High court reversed the awards of the Civil Court and confirmed that of the Land Aquisition Collector. Mr. Sanghi, learned Sr. counsel for the appellants with his usual vehemence contended that the High Court committed manifest error of law in reversing the awards and decrees of the Civil Court which had the advantage of seeing the demeanour of the witnesses and extensively considered the evidence in particular the unimpeachable documents Exs. P. 7, P. 9 and P. 10. The appellant, on account of the acquisition, had to incur huge expenditure to construct Kayallas, Pathways, culverts etc. for protection of the rest of the Estate. The amount expended was to prevent injurious effects to the Estate and is to be recompensated. It is further contended that the potential value of the trees have to be taken into account in determining the market value. The appellant also is entitled to compensation for severance due to submersion of the lands when the Periyar Canal passes through the rubber estate of the appellant. Therefore, the appellant is entitled to the compensation in full measure with interest on solatium. The High Court was unjustified in reversing the awards and the decrees of the Civil Court.

2. The first question, therefore, is whether the High Court is justified in reversing the awards and decrees of the Civil Court. Admittedly 190.37 and 15.48 cents of land is part of the extensive Periyar Estate of 879.37 acres stretching over seven miles long on the banks of the Periyar River. It had a road of 14 feet width by name Alawaye Munnar Highway running through middle of the Estate. The lands were acquired for submersion due to Periyar River Valley Irrigation Project and to establish Phyto-Chemical Project. Shri Sanghi, repeatedly reiterated that in determining the market value an element of some guesswork is involved. But in determining the market value the Court has to eschew arbitrary fixation keeping in view the settled principles of law in evaluating market value in compulsory acquisition on the hypothesis of a willing vendor and