ORDER

1. Notification under Section 4(1) was published in the State Gazette on 9-4-1976 acquiring an extent of 116 acres of the agricultural lands for the purpose of establishing Water Treatment Plant and other allied public purposes. The Land Acquisition Collector in his award dated 20-3-1979 awarded compensation up to a depth of 100 yards at the rate of Rs 50,000 per acre and for the rest of the land he awarded compensation at the rate of Rs 15,000 per acre. On reference under Section 18 of the Act, the Additional District Judge by his award and decree dated 9-8-1982, enhanced the market value to a depth of 50 yards at the rate of Rs 1,50,000 per acre and 50 to 100 yards at the rate of Rs 60,000 per acre and for the rest at the rate of Rs 50,000 per acre. On further appeal, the learned Single Judge while upholding the principle of belting made by the Land Acquisition Collector disagreed with the principle of belting, distinction between 50 yards and 100 yards, and granted market value at the rate of Rs 1,50,000 up to a depth of 100 yards and Rs 65,000 per acre for the rest of the land. On letters patent appeal, the Division Bench by its judgment and decree dated 11-4-1991, granted uniform flat rate of Rs 1,50,000 per acre to the entire area. Thus, these appeals by special leave by the Appellant Municipal Committee.

2. Admittedly, as on the date of notification published in State Gazette, the lands are agricultural lands. No sanction of the plan to sell for building purposes was obtained by the owners. The question is whether the lands are capable of potential value. The reference court on consideration of the evidence found thus:

"The land has obtained potentialities for being put to residential, commercial or industrial uses and is within the urban area of the town (Bhatinda). In such circumstances agricultural qualities of the land not to be made basis for determination of compensation inclusion of the land within the municipal limits earlier to the notification."

The learned Single Judge while accepting that the lands are possessed of potential value, placed reliance on Exhibit A-92 plan prepared by AW-4 and stated that the acquired land abut Sirhind Canal towards the west and beyond Sirhind Canal is the Thermal Colony. Towards the south, the acquired land abuts on Bhatinda-Barnala Road. Central Aviation Microwave Centre is also towards the south of the acquired land. The Aviation Centre also abuts on the aforesaid road. Bhatinda-Mansa-Talwandi Sabo Road joins Bhatinda-Barnala Road just in the middle of the acquired land towards the west. There is a bridge over Sirhind Canal for Bhatinda-Barnala Road. There are two cinema houses besides numerous residential houses on both sides of that road besides several homes on Bhatinda-Barnala Road. There is a residential colony in Khasra No. 1978. It could thus be seen that though the lands were agricultural lands on the date of notification, since they are situated within the municipal limits and nearer to the built-up area the lands have potential value for residential or commercial purposes. The Division Bench also reaffirmed the finding that the lands are possessed of potential value. We, therefore, hold that the lands are possessed of potential value.

3. The next question is what is the market value to be determined in the case. The learned Single Judge having referred to the sale deeds Exhibits A-84 to A-89, found that right from December 1970, the lands abutting the road are fetching higher price of Rs 1,20,000 per acre than the land situated behind the belt of 100 yards and that, therefore, it was concluded thus:

"Whereas out of the same khasra number in December 1970, vide Exhibits A-86 to A-89, that much area or area up to the extent of 3000 sq. yards was being sold at an average price of Rs 1,25,000 per acre. The aforesaid instances as also the other instances brought on the record do show that the land abutting on the two roads is of higher value as compared to the land lying