ORDER

R. V. Raveendran J.—

These appeals relate to determination of compensation for 38. 48 acres of land in village Jharsa, Tehsil & District Gurgaon, Haryana, acquired for establishment of a jail. The acquisition was initiated under preliminary notification dated 22.11.1984, issued under section 4(1) of the Land Acquisition Act, 1894 (‘Act’ for short). Land Acquisition Collector (‘LAC’ for short) by his award dated 22.8.1985, offered compensation at the rate of Rs .60,000/ - per acre for chahi land, Rs. 50,000/- per acre for aabi land and Rs. 40,000/- per acre for gair mumkin land. The Reference Court increased the compensation uniformly to Rs.36.20 per sq. yd. (that is Rs.1,75,200/- per acre) by judgment and award dated 26.9.1989. The appeals filed by the land owners for further anhancement were dismissed by the High Court, by the impugned judgments dated 11.2.2004, 31.3.2004, 11.2.2004 and 7.11.2006.

2. Before the Reference Court, claimants relied upon sale deeds marked as Ex.P-1 to P-12 relating to the period 1981 and 1982 (except Ex.P8 which was’ dated 28.7.1983) which disclosed an average price of Rs. 78/85 per sq. yd in Jharsa village. The said sale deeds related to small residential plots varying in size between 167 sq. yards to 665 sq.yds. The Reference Court deducted one- third of such price (that is Rs. 26.25) towards “development cost and arrived at the market value as Rs.52.60 per sq. yd. during 1981-82. As the market value of the acquired lands had to be determined as on 22.11.1984, the date of notification under section 4(1) of the Act, the reference court increased the said market value of Rs.52/60, at the rate of 12% per annum, for two years (that is, (by Rs.12/62) and arrived at a market value of Rs.65/22. The Reference Court was of the view that it should also take note of the sale deed, relied on by the LAC, namely Ex. R-2 dated 27.11.1984 which related to sale of one acre of land for Rs.30000/- which worked out to Rs.6.19 per sq. yd. The Reference Court took the average of Rs. 65.22 which was the rate disclosed by the sale deeds relied on by the claimants and Rs. 6 . 19 being the rate disclosed by the sale deed relied on by the LAC and awarded the same as compensation. Though the average works out to Rs.35/70, the compensation awarded was Rs.36/20 per sq. yd. This determination was affirmed by the High Court.

3. The claimants have filed these appeals aggrieved by the said judgments, contending that the compensation awarded is inadequate. The appellants have urged the If following two contentions:

(i) that Ex.R2 dated 27.11.1984 relied on by the LAC ought to have been excluded from consideration, while determining the market value; and

(ii) that the deduction of one-third of the market value of small plots, towards development cost, is erroneous and no deduction ought to have been made. The appellants submit that if these two corrections were made, the market value would ‘have been Rs.98/91per sq. yd (that is Rs. 78/85 plus 12% per year cumulatively for two years) to be rounded off to Rs.100/- per sq. yd. Re First Contention

4. Ex. R.2 dated 27.11.1984 relied on by the LAC relates, to sale of one acre of land for a price of Rs.30,OOO/- per acre. This is far less than the compensation that was offered by the LAC. Having regard to the large variance between the market value disclosed by the twelve sale , deeds exhibited and relied upon by the claimants (average of which is Rs. 78/85) and the market value disclosed by Ex R2 (Rs.6/19 per sq.yd) relied upon by LAC and having regard to the fact that the value disclosed ‘by Ex. R2 was even less than what was offered by the LAC, it has to be inferred that Ex R2 was either ‘f grossly undervalued or was a distress sale and has to be excluded from consideration, as being unreliable.

5. If Ex R2 is excluded, the average of the prices disclosed by the twelve sale deeds relied on by the claimants, that is Rs ; 78/85 per sq. yd, would be indicative of the market value i