Judgment

R.V. RAVEENDRAN, J. Leave granted.

2. An extent of 127 acres 26 guntas of lands in Betegeri village within the municipal limits of Gadag-Betegeri Municipality, was acquired for Karnataka Housing Board in pursuance of Preliminary Notification dated 6.2.1992. The Land Acquisition Officer, Gadag, made an award dated 14.2.1997 awarding a compensation of Rs.45,000/- per acre.

3. On a reference being made at the instance of the land owners, the Reference Court, by judgment and award dated 11.7.2003, determined the compensation for the acquired lands as Rs.2,17,372/- per acre. For this purpose, the Reference Court relied upon Exhibit P-2 which is a sale deed dated 30.7.1992 executed by the Municipal Commissioner, Gadag-Betegeri Municipality in favour of one Manikamma in regard to a plot measuring 329 sq. meters which was sold for Rs.37,600/- in an auction sale on 2.1.1989 (which works out to Rs.114.29 per sq.m). The Reference Court, therefore, arrived at the market value per acre as Rs.4,62,494/-. It deducted 53% towards development (that is, towards areas to be set apart for roads, drains and vacant spaces and towards cost of development) and arrived at the market value as Rs.2,