( 1 ) LEAVE granted.

( 2 ) NOTIFICATION under Section 4 (1) of the Land Acquisition Act, 1894 (for short, the Act), was published on 12/01/1978 acquiring 9 acres 10 guntas of land situated in survey Nos. 118/4, 118/5a and 5b situated in Nituvalli Village, Davanagere. The Land Acquisition Officer by his order dated 17/05/1979 awarded a sum of Rs. 5,000. 00 per acre. On reference, the Civil Court by its award and decree dated 30/10/1984 determined the compensation @ Rs. 30,000. 00 per acre. On appeal, the High Court determined the compensation after giving deductions of 53 Per Cent @ Rs. 18. 00 per sq. yd. by judgment and decree dated 19/08/1992. Thus, this appeal by special leave has been filed by the claimants.

( 3 ) THE State has not filed any appeal against the enhanced award of the High Court. Shri Javali, learned senior counsel appearing for the claimants, contended that in a notification issued in 1967 acquiring 1 acre 32 guntas of land covered in MFA No. 670/71, MFA No. 7/72 for expansion of the hospital, the High Court awarded @ Rs. 35. 00 per sq. yd. after giving deductions. In another notification dated 21/12/1972, acquiring lands for the Police Parade Ground covered in M. F. A. No. 1426 of 1987, by judgment and decree dated 12/06/1993, the Division Bench of the High Court enhanced the compensation to Rs. 80. 00 per sq. yd. after giving deductions for establishment of Employees State Insurance Hospital; and this Court in appeals arising out of S. L. P. (C) Nos. 11908-1190/95 by order dated 10/11/1995, confirmed the said market value of the agricultural lands @ Rs. 115. 00 per sq. yed. for converted lands. In view of the fact that the lands are situated abutting the national Highway and having regard to the establishment of bus stand, the High Court committed grievous error of law in determining the compensation @ Rs. 18. 00 per sq. yd. which is unjust and illegal. Shri Sanghi, the learned senior counsel for the respondents, has contended that the High Court has considered all the relevant facts and having regard to same, it was justified in determining the compensation at the rate of Rs. 18. 00 per sq. yd.

( 4 ) HAVING heard the learned counsel for the parties, the question emerges is: What would be the reasonable market vlaue which the lands are capable to fetch ? It is seen that in the award of the Collector, he accepted the statement made by the parties regarding the situation of the lands. It is stated that the lands are situated in the heart of the industrial area of Devangere City which lies within the limits of the Municipality. They are near the Cotton Mills, Ganesh Textile Mill, Devangere Cotton Mill, Rice Mill Davengere Regional Grave Yard, Fire Station, Oil Mill and another fast up growing industries. This situation of the lands was also accepted by the Reference Court as well as the High Court. Ultimately, the High Court recorded a finding that the lands possessed of potential value, though at the relevant time, they were agricultural lands and 2 acres and odd, were converted into non-agricultural use. No steps have been taken to develop the lands and other amenties have not been provided.

( 5 ) FROM this, the question is what would be the reasonable market value that the lands would command in open market. The appellants themselves have placed on record the sale deed of an extent of 133x 99 under Exp. P-18 dated 30/05/1974 which fetched of consideration of Rs. 41,000. 00 per acre. The High Court was not inclined to accept in toto this sale deed. But it held that it provides guidance in determination of the market value. Though the appellants have relied upon the Government Circular determining the value of the lands for the purpose of fixing Stamp Duty and Registration Fee and also the Commissioners Report regarding the valuation assessed by him, by the High Court rightly has not accepted them. This Court also had held that the circulars issued by the Government under Section 47a of the Stamp Act for fixa