(1) NOTIFICATION under Section 4(1 of the Land Acquisition Act, 1894 (for short the Act) acquiring an extent of six acres 21 gunthas of land for Hydro-Electric Project was published on 12/8/1975. The Land Acquisition Officer awarded compensation at various rates for wet land, dry land, garden land and phot-kharab land. On reference under Section 18, the civil court enhanced the compensation at a uniform rate of Rs. 15,520.00 per acre. On appeal under Section 54, the High court enhanced the compensation to Rs. 18,000.00 per acre. Dissatisfied therewith, the State government has filed this appeal by special leave.

(2) SHRI Veerappa, learned counsel for the State, has contended that the High court committed grave error of law in recording a finding that lands were possessed of potential value for building purposes. We find no force in the contention. It is seen that when 7800 tenements were constructed in the project area, it would be clear that a township had come into existence. It is an admitted fact that the land under acquisition is abutted against the township. It is also an admitted fact that in Ext. A-12, sanction was obtained on 13/9/1973 for conversion of agri