JUDGMENT

SUDHANSU JYOTI MUKHOPADHAYA, J

1. Leave granted.

2. These appeals are directed against the judgment and order dated 16th July, 2005 passed by the High Court of Uttaranchal (now Uttarakhand) at Nainital in first Appeal No. 56 of 2001 (Old No.325/1995). By the impugned judgment, the Division Bench of the High Court partly allowed the appeal preferred by the State of U.P., set aside part of the judgment and award dated 23rd March, 1995 passed by the Reference Court.

3. The factual matrix of the case is as follows: A Notification under Section 4 of the Land Acquisition Act, 1894 was issued on 14th September, 1977 for the purpose of acquiring land measuring 36 acres situated at Glenmire Estate, cosycot and cosynook in Mussoorie. The acquisition was so made for the purpose of extension of Lal Bahadur Shastri National Academy of Administration, Mussoorie. Thereafter follow up Notification under Section 6 of the L.A.Act was issued on 30th January, 1978 which was also published. The possession of the land was taken over on 3rd July, 1986. The Special Land Acquisition Officer, after hearing the parties passed the award on 27th November, 1984 determining the amount of compensation at Rs.4,89,615.75.

4. Col. Jai Krishan (since deceased) represented by Lrs. (appellant herein) and Mahesh Chandra- respondent no.8, got filed reference under Section 18 of the L.A. Act. The said reference No. L.A.154 of 1985 heard by the Additional District Judge, Dehradun. The aforesaid claimants alleged before the Reference Court that considering the fact that Mussoorie is a famous tourist place, its land is of immense potential value, the market value of the land in question is Rs.25 lakh per acre.

As such they claimed compensation for 36 acres of acquired land. They further claimed that the value of the constructed building cannot be assessed less than Rs. 100/- per sq. feet and, therefore, considering the plinth area of 3786 sq. feet of Glenmire building, 2528 sq. ft. of Cosynook building and other construction, the valuation should be Rs.6,31,400/- and after deducting the amount on account of depreciation factor the value of building is Rs. 4,73,550/-. There were 6990 trees on the aforesaid 36 acres of land. The claimants also submitted before the reference court that considering the fact that value of the trees which has been assessed @ Rs.15/- per tree, should have been at least Rs.50/- per tree.

In reply, the stand of the State of U.P. was that the claimants have already claimed Rs.7,50,000/- as compensation for the acquired land and as such they are not entitled to claim any amount more than that. It was further pleaded that the land being sloppy and uneven as such it cannot be assessed more than Rs.5,000/- per acre. The respondents based their claim on the basis of the rate shown in exemplar sale deed dated 26th December, 1976.

5. The Reference Court after framing necessary issues, taking into consideration the evidence and hearing the parties enhanced the amount of compensation of land from Rs.1,80,000/- to Rs.19,76,000/- and that of trees from Rs.1,05,155.50 to Rs.4,00,000/-. Aggrieved by the order passed by the Reference Court the State and Union of India preferred the appeal.

6. The Division Bench of Uttarakhand High Court by the impugned judgment dated 16th July, 2005 applied the principle of Belting area on following presumption: "No doubt that Mussoorie is an important tourist place and its land is of immense potential value but simultaneously it is also true that the land in Mussoorie is sloppy and hilly. As such for assessing a true market value that flat rate, for entire land of 36 acres, cannot be applied."

7. The claimants also claimed 12% additional compensation u/s 23(1A) of the L.A. Act, which the Court below had not granted. The claimants also claimed that they were entitled to receive a sum of Rs. 7,01,875/- towards Fuel value/Timber value of the tree standing on the acquired land as approved by the retired Forest Ranger. They also pl