JUDGMENT

G.S. SINGHVI, J.

1. Feeling dissatisfied with the meagre enhancement granted by the learned Single Judge of the Madhya Pradesh High Court in the amount of compensation determined by II Additional District Judge, Shivpuri (hereinafter described as, ‘the Reference Court’), the appellants have filed this appeal.

2. By notification dated 28.5.1987 issued under Section 4(1) of the Land Acquisition Act, 1894 (for short, ‘the Act’), which was published on 12.6.1987, the Government of Madhya Pradesh acquired the appellants’ land measuring 3.627 hectares comprised in Survey Nos.2, 10, 20, 22, 46, 48 and 166 of Village Jagatpur, Tehsil Kolaras, District Shivpuri for construction of Broad Gauge Rail Line by the Central Railway. Another parcel of land measuring 0.951 hectares comprised in Survey No.18, of which the appellants were the occupancy tenants, was also acquired by the same notification. The possession of the acquired land was taken on 30.11.1987. The Land Acquisition Officer passed an award dated 26.8.1989 and held that for the land measuring 3.627 hectares, the appellants are entitled to total compensation of Rs.16,419 with solatium of Rs.4,926 and interest amounting to Rs.985. For the land comprised in Survey No.18, no compensation was awarded to the appellants. Instead, compensation was paid to respondent Nos.3 and 4, namely, Jagdish Narayan s/o Mool Chand and Chandra Mohan s/o Ram Dayal, whose names were recorded in the revenue records.

3. The appellants did not feel satisfied and filed applications under Section 18 of the Act for determination of the amount of compensation by the Court. They also filed an application under Section 30 of the Act and pleaded that respondent Nos.3 and 4 are not entitled to receive any compensation. Thereupon, the Collector made a reference to District Judge, Shivpuri. The latter assigned the cases to the Reference Court. The reference applications filed by the appellants were registered as Civil Miscellaneous Case No.3/1991 and 13/1998 respectively and the application filed under Section 30 was registered as Civil Miscellaneous Suit No.12/1998.

4. In Civil Miscellaneous Case No.3/1991, the appellants prayed for award of compensation at the rate of Rs.5 per square yard. They pleaded that the acquired land has good development potential and the Land Acquisition Officer committed serious error by treating the same as agricultural land. The appellants also claimed compensation of Rs.18 lacs by alleging that due to laying of railway line, their lands were bifurcated and its value was considerably diminished. They further alleged that the authorities of Central Railway had illegally taken possession of their land and the earth was dug out from an area measuring 6 hectares rendering the entire land unfit for cultivation.

5. The respondents contested the claim petition and pleaded that the Land Acquisition Officer did not commit any illegality by fixing market value of the acquired land by relying upon the sale deeds relating to agricultural lands.

6. On the pleadings of the parties, the Reference Court framed the following issues:

“(i) Whether compensation determined by the Land Acquisition Officer is insufficient and improper and contrary to the provisions of Section 23 of the Land Acquisition Act?

(ii) Whether the petitioners are entitled to higher compensation? If yes, to what extent?

(iii) Relief and costs.”

7. In support of the claim, appellant No.1 - Himmat Singh examined himself as PW-1 and produced a number of documents including sale deeds marked as Exhibits P1 to P12. He stated that on the date of acquisition, the land was fully developed for agricultural purposes; that there were several Government offices / establishments and residential premises near the acquired land. PW-1 further stated that there are metalled roads of the PWD on the North and South of the acquired land and that 90% of th