JUDGMENT

PUNCHHI, J.:- In this batch of 87 matters, 19 are special leave petitions preferred by the Food Corporation of India through its District Manager, Faridkot, Punjab, and the remaining by some claimant - land - owner against the Food Corporation of India. The dispute is about the correct assessment of the market value of the land acquired by the State of Punjab for the Food Corporation of India. Notice was.issued to the contesting parties indicating to them that the matter may finally be disposed of at the notice stage itself. Therefore these have been heard in full. On behalf of the Food Corporation of India, Mr. G. L. Sanghi, Sr. Advocate has been heard and Mr. Rajender Sachar, Sr. Advocate for the claimant-land-owners. Special leave is granted in all these matters.

2. Land measuring 400 Kanals 12 Marlas (a little over 50 acres) situated in the revenue estate of village Danewala, Tehsil Muktsar, District Faridkot, Punjab, was acquired for construction of foodgrain godowns. Notifications under Ss. 4 and 6 were issued simultaneously on the same day, that is, 20th December, 1977. The District Collector of Faridkot on January 31, 1984 awarded compensation for the acquired land differentiating between Nehri lands and Barani lands at the rate of Rs. 30,000/-per acre and below. Being not satisfied, the claimant-land-owners moved the Collector, Faridkot, for reference under S. 18 of the Act for enhancement of compensation. Two references were filed by the Food Corporation of India as well for reduction. The Additional District Judge on receipt of the references went into the matter and held the references by the Food Corporation of India barred under the proviso to Sub-sec. (2) of S. 50 of the Act. In the other references, the Food Corporation of India as well as State of Punjab were arrayed by the claimant-land-owners themselves as respondents. The Additional District Judge after examining the matter awarded a uniform rate of Rs. 1,20,000/- per acre for the land acquired, vide his award dated on 1 3-6-86. Since the matter was pending in the Court of the Additional District Judge when the Land Acquisition (Amendment) Act, 1984, came into force, solatium at the rate of 30% was ordered to be paid on the market value of the land. The claimants were also held entitled to interest at the rate of 12% per annum from the date of Notification under S. 4 of the Act to the date of the Award of the Collector or from the date of taking possession whichever is earlier, and from the date of taking possession till one year thereafter at the rate of 9% per annum and in the rate of 15% per annum from the date of expiry of one year from the date of taking of possession till payment.

3. The appeals of the Food Corporation of India and the State of Punjab on the one hand and appeals of the claimant-land-owners on the other, respectively asking for reduction and enhancement of compensation, were dismissed by a common judgment by a learned single Judge of the Punjab and Haryana High Court on August 16,1988. The assessment at the rate of Rs. 1,20,000/- per acre was affirmed but on a different reasoning than the one adopted by the Additional District Judge. Likewise, Letters Patent Appeals by the respective parties to a Division Bench of the High Court were dismissed maintaining the measure of compensation at the rate of Rupees 1,20,000 / - per acre still on a different reasoning than the one adopted by the learned single Judge or the Additional District Judge. Since the reasoning has differed from Court to Court, we became inclined to examine the issue over again and come to a decision regarding the rate of compensation which would be just and equitable in the circumstances, as well as meeting the requirements of law.

4. The purpose of the Land Acquisition Act is to empower the Government to acquire land only for public purposes or for a company, and, where it is for a company, the acquisition is subject to the provisions of Part VII. Public purposes