JUDGMENT

Abhay Manohar Sapre, J. - Leave granted.

2. These appeals arise out of judgment dated 23.03.2007 passed by the High Court of Karnataka at Bangalore in MFA Nos. 5723/2005, 5722/2005, 6332/2005 and 6868/2005 which arise out of award dated 31.03.2005 passed by the III Addl. Civil Judge (Sr. Dn.), Belgaum in L.A.C. Nos. 11/1999, 12/1999, 13/1999 and 14/1999.

3. By the impugned judgment/decree, the Division Bench of the High Court partly allowed the first appeals filed by the respondents herein (land owners) and while modifying the award of the Addl. Civil Judge, Belgaum in respondents' favour enhanced the quantum of compensation payable to the respondents for their lands which were acquired by the State under the Land Acquisition Act, 1894 (hereinafter referred to as "the Act"). Feeling aggrieved by the judgment passed by the High Court, the appellant (Central Government Organization) for whose benefit the lands in question are acquired has filed these appeals by way of special leave.

4. The question that arises for consideration in these appeals is whether the High Court was justified in partly allowing the respondents' appeals by enhancing the rate/quantum of compensation payable to the respondents (land owners) for their acquired lands under the Act?

5. In order to appreciate the controversy involved in these appeals, it is necessary to state the relevant facts infra.

6. The respondents are the owners of the land bearing R.S. Nos. 1323 CTS No. 5435-1B, R.S. No. 1323-1B-2 CTS No. 5435-1B-2, R.S. No. 1323-B1 CTS No. 5435-B and R.S. No. 1323-1B-3 CTS No. 5435-B-3 measuring total 40 guntas situated near Nehru Medical College, Belgaum. In exercise of the powers conferred under Section 4 of the Act, the State Government issued a notification on 19.12.1994 and acquired a large chunk of land measuring 40 guntas for establishment of Indian Medical Research Centre. This acquisition of land was for the benefit of Indian Council of Medical Research (in short "the ICMR") - an Institute wholly owned and controlled by the Central Government, who were desirous of setting up one Medical Center in Belgaum town, for the benefit of public at large. It was followed by the declaration published on 30.11.1995 under Section 6 of the Act. The respondents' lands in question were acquired pursuant to the aforementioned Notification under Section 4 of the Act. This led to initiation of proceedings for determination of compensation payable to each land owner including that of the respondents herein by the Land Acquisition Officer (in short called "the LAO"). Notices were accordingly issued to the respondents as per Section 9 of the Act calling upon them to participate in the land acquisition proceedings to enable the LAO to determine the fair market value of the land on the date of acquisition as provided under Section 23 of the Act so that the compensation is paid to the land owners at such determined rate. The LAO held an enquiry and after affording an opportunity to the respondents passed an award on 06.03.1998.

7. The LAO fixed the compensation at the rate of Rs. 1050/- per gunta = Rs. 42,000/- per acre, payable to the respondents for their lands in question as in his opinion, the respondents were entitled to claim compensation for their lands at the rate of, Rs. 1050/- per gunta being the fair market value of the acquired lands in question.

8. Feeling aggrieved by the said award, the respondents sought reference to the Civil Court for re-determination of the compensation made by the LAO. The reference Court, on the basis of the evidence, partly answered the respondents' reference in their favour and by judgment dated 31.03.2005 enhanced the rate of compensation from Rs. 1050/- per gunta to Rs. 7,000/- = Rs. 2,80,000/- per acre. In other words, the reference Court held that the respondents were entitled to get compensation for their lands at the rate of Rs. 7000/- per gunta = Rs. 2,80,000/- per acre being the fair market value of their lands from the