N. Y. HANUMANTHAPPA, J.

( 1 ) THESE appeals filed under Section 54 of the Land Acquisition Act came up for hearing before the Division Bench consisting of their Lordships Hon ble Sri Justice P. Venkatarama Reddy and Hon ble Sri Justice B. V. Ranga Raju of this Court. After hearing both sides and going through various issues involved in the appeals and conflicting views given by this Court (separate Benches) on the similar issues, the learned Judges felt that some of the unanswered questions on several aspects coming up every day in the appeals filed under Section 54 of the Land Acquisition Act require to be dealt and an authoritative pronouncement to be rendered by a Full Bench of this Court. Accordingly these appeals have been referred to the Full Bench.

( 2 ) BEFORE answering the reference, we would like to set out a few facts which are involved in these appeals as follows: An extent of Ac. 9. 42 cents of dry land situated in NTC No. 369 to 372 of Mogalrajapuram, revenue mandal of Vijayawada municipality belonging to the respondents was the subject-matter of acquisition by the Government for purpose of rehabilitating the fire accident victims. The said land was a part of huge extent of Ac. 42. 16 cents which was acquired under Section 4 (1) of the Land Acquisition Act, 1894 by publishing Notification dated 19-4-1979. The Land Acquisition Officer passed an award on 16-1-1982 fixing the market value of the acquired land at Rs. 22,230. 00 per acre. On reference under Section 18 of the Land Acquisition Act, in a batch of cases, the Reference Court by its common judgment in OP No. 113 of 1982 fixed the market value at Rs. 30. 00 per sq. yard. Challenging the same both the State and the claimants preferred appeals and cross-objections before this Court in AS Nos. 2332 of 1986 and 3134 of 1985. This Court by an order dated 25-10-1989 dismissed the appeal filed by the State and allowed the cross-objections filed by the claimants enhancing the compensation to Rs. 40. 00per sq. yard. The remaining reference applications in respect of same land came up for consideration before the Reference Court where the claimants claimed compensation at Rs. 2 lakhs per acre. The Reference Court by placing reliance on Exs. A1 to A3, i. e. , judgments and decrees of this Court passed in AS No. 1886 of 1986, AS No. 3134 of 1985 and common judgment in AS No. 1886 of 1986 and AS No. 2332 of 1986 dated 25-10-1989 respectively and also taking into consideration the location of the land as being nearer to the National High Way when compared to the lands involved in other appeals, enhanced the compensation to Rs. 40. 00 per sq. yard. Aggrieved by this these appeals. It was canvassed that the lands situate in urban agglomeration area. Some claimants filed their declarations. This Court in AS Nos. 3134 of 1985, dated 25-10-1989 (Ex. A3) found that the land though notified as agricultural land in the Master Plan it can be evaluated as non-agricultural land and the market value be fixed with reference to the value of house plots.

( 3 ) THE Division Bench of this Court (Sri P. Venkatarama Reddy and B. V. Ranga Raju, JJ) found that (i) in some of the cases while determining the market value, the Court took into consideration the market value in respect of small bits of land as a guide to determine the market value in respect of large extent of land; (ii) though the lands are situated nearer to the city area but the occupants contended that the said lands are not included in urban agglomeration and as such still they are agricultural lands. But when the said lands were acquired the claimants started claiming compensation in respect of the said lands as non-agricultural lands. In some cases this Court accepted the said contention and awarded compensation treating such lands as non-agricultural lands having potentiality to form house sites. In other words treating the said land as house sites. The Court proceeded on the hypothesis that where the lands situated in urb

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