JUDGMENT

GANGULY, J.

1. The appellants are the owners of the lands bearing Survey Nos. 1587 to 1596, 1597-A- Part, 1599 to 1601 of Ward No. 4 of Taluka Choryasi of the city of Surat in Gujarat.

2. On 22.08.1980, the Standing Committee of the Surat Municipal Corporation (hereinafter `SMC'), passed a resolution with a proposal to the State Government, under Section 78 of the Bombay Provincial Municipal Corporations Act, 1949 (hereinafter `BPMC Act'), for initiating land acquisition proceedings under the Land Acquisition Act, 1894, for acquiring the abovementioned land of the appellants. The said land, admeasuring 7168.09 sq. mts., was to be acquired for the setting up of a vegetable market. The said resolution was approved and the proposal was sanctioned by the State Government on 30.07.1981.

3. On 3.03.1986, the first Development Plan under the Gujarat Town Planning & Urban Development Act, 1976 (hereinafter the `Development Act') was under preparation for the Surat Urban Development Authority (hereinafter `SUDA'). During the pendency of the said plan, the State Government sanctioned the abovementioned proposal, and therefore the land in question was kept reserved for a vegetable mar