IMPORTANT POINT
The principles enunciated in (1988) 3 SCC 751 should be kept in mind while determining market price of the acquired land.

JUDGMENT

Abhay Manohar Sapre, J.

1) These appeals are filed by the land owners against the final judgment and order dated 07.07.2014 passed by the High Court of Karnataka, Circuit Bench at Dharwad in M.F.A. No. 25301, 25302, 25303 and 25304 of 2012 whereby the High Court allowed the appeals in part and modified the Award dated 24.08.2012 passed in LAC Nos. 107, 106, 108 and 109 of 2004 by the Court of Senior Civil Judge, Mudhol and re-determined the compensation at Rs.13,93,920/-per acre as against Rs.6,75,000/-per acre with all statutory benefits as envisaged under Section 23 of the Land Acquisition Act, 1894 (hereinafter referred to as “the Act”).

2) We herein set out the facts, in brief, to appreciate the issues involved in these appeals.

3) The respondent, by Notification dated 25.01.2003 issued under Section 4(1) of the Act followed by final Notification dated 26.03.2003 issued under Section 6(1) of the Act, acquired the lands belonging to the appellants in Survey No. 554/1 measuring 16 acres 27 guntas, Survey No. 554/2 measuring 15 guntas, Survey No. 555/2 measuring 3 acres 34 guntas and Survey No. 553/A/1 measuring 9 acres 14 guntas (total 30.8 guntas approx.) situated at Mudhol village and Taluk for the purpose of construction of Rehabilitation Centre in favour of the displaced persons of Gudadinni Village of Bilagi Taluk, whose properties came to be submerged under Upper Krishna project.

4) By awards dated 22.07.2003, the Special Land Acquisition Officer determined the market value of the acquired lands at the rate of Rs.96,164/- per acre.

5) Being aggrieved by the awards made by the Land Acquisition Officer, the appellants (land owners) sought reference to the Senior Civil Judge, Mudhol under Section 18(1) of the Act and claimed compensation at the rate of Rs.300/-to Rs.350/-per sq. ft. for the acquired lands inter alia on the ground of building potentiality and comparable sale deeds of the several plots in the vicinity of the acquired lands. Their applications were registered as LAC Nos. 107, 106, 108 and 109 of 2004. The Reference Court clubbed them together and recorded common evidence in LAC No. 107/2004.

6) By common judgment and Award dated 24.08.2012, the Reference Court, by relying upon its earlier judgment dated 18.12.2009 passed in LAC No. 1659/2000 wherein the market value was determined at the rate of Rs.5,00,000/-per acre, fixed the market value of the acquired lands of the appellants at the rate of Rs.5,00,000/-per acre and awarded the compensation of Rs.6,75,000/-per acre inclusive of Rs.1,75,000/-per acre towards escalation price at the rate of 5% per annum from 21.08.1996, the date on which the Notification under Section 4(1) was issued in LAC No. 1659 of 2000 till 25.01.2003, the date on which the Notification under Section 4(1) was issued in the cases at hand.

7) Aggrieved by the compensation determined by the Reference Court, the land owners filed appeals being M.F.A. Nos. 25301, 25302, 25303 and 25304 of 2012 before the High Court.

8) By impugned judgment dated 07.07.2014, the High Court allowed the appeals in part and while setting aside the award of the reference Court and disagreeing with its reasoning re-determined the compensation at Rs.13,93,920/-per acre as against Rs.6,75,000/-per acre awarded by the Reference Court with all statutory benefits as envisaged under Section 23 of the Act.

9) The High Court, inter alia, held by relying on the price (Rs. 64/-per sq. ft.) value of one exemplar sale deed (Ex.P-61) out of 11 sale deeds filed by the appellants and deducting 50% towards development charges from its price determined the market value at Rs.13,93,920/- per acre (Rs. 32/- per sq. ft.).

10) Against the said judgment, the appellants have filed these appeals before this Court seeking further enhancement in the compensation awarded by the High Court.

11) Heard Mr. Dhruv Mehta, learned