(1) THE facts are very brief. Notification under Section 4(1 of the Land Acquisition Act, 1894 (for short, the Act), acquiring land for a public purpose, namely, to establish Electricity Sub-Station for the Maharashtra State Electricity Board as published in the State Gazette on 19-4-1966. The Land Acquisition Officer in his award determined the compensation at Rs. 5,000.00 per acre in respect of an extent of 7 acres 9 gunthas of land in Survey No. 124-A situated in Airavali Village in Thane District of State of Maharashtra, but deducted l/3rd towards the interest of the government. The respondent had challenged the governments power to deduct 1/3rd compensation. The appellate court confirmed the same. On appeal, the High court, while increasing the compensation to Rs. 6,000.00 per acre, had directed payment of the deducted l/3rd amount to the respondent by its judgment and decree dated 10/9/1976 made in FA No. 574 of 1970. Thus this appeal by special leave.

(2) LEARNED counsel appearing for the State has contended that the government in its circular dated 26/4/1972 issued by Revenue and Forests Department in Letter No. LON-4767-H, directed deduction of l/3rd of the