JUDGMENT

RANGANATH MISRA, C.J.I. :- Special leave granted.

2. By notification dated 12th January, 1973, under Section 4(1) of the Land Acquisition Act, 1894 as modified by Notification of 27th July, 1978, 26 acres and 26 gunthas of land located within the Hyderabad District was notified for acquisition for the Bhagyanagar Urban Development Authority. A similar notification was published on 14th June, 1979 for acquisition of two acres and 29 gunthas. The Land Acquisition Officer made his award for both the properties on 10th June, 1982 fixing the market value at Rs.42,000 per acre with five per cent deduction towards development cost. Being dissatisfied with the awards passed by the Land Acquisition Officer, a reference was sought and made under section 18 of the Act. The claimants demanded compensation at the rate of Rs. 200 per square yard. The Civil Court fixed the market value at Rs. 200 per sq. yd. as demanded but directed deduction of 20 per cent towards development charges. The Land Acquisition Officer carried appeals against the escalation of compensation and the, present appellants preferred cross objections. The High Court reassessed the entire evidence and came to hold:

"Tod