The determination of market value in land acquisition cases should consider sale statistics, documentary evidence, and legal evidence, and deductions for developed area and urban land may be inadmissible based on the non-agricultural potentiality of the land.

GOPAL GOWDA, J, J.

( 1 ) THE appellants are the owners of a plot measuring 140 x 99 feet. It is about 12 guntas in Sy. No. 14/1/2 of Lakmanahalli in Dharwad district. It is a remaining portion after the government taken over the excess portion under the repealed Urban land (Ceiling and Regulations)Act. The said left - over land was acquired for karnataka Housing board for construction of houses. Preliminary Notification was dated 20 - 3 - 1989 and Final Notification was dated 18 - 11 - 1989. Award was passed by the Land Acquisition Officer on 8 - 5 - 1992. Compensation awarded was Rs. 25,000/ - per acre. Not satisfied with the compensation awarded, the Appellants sought reference under section 18 (1) (a) of the Land Acquisition (Mysore Extension and Amendment) Act of 1961 (hereinafter called as 'l. A Act' in short) for higher compensation by determining the market value of the land. The reference Court passed a common judgment and award dated 28 - 1 - 2002 in L. A. C. Nos. 267 and 268/93 re - determining the market value at Rs. 2,80,000/ - per acre with other statutory benefits after conducting an enquiry under Section 21 of the L. A. Act. Being dissatisfied with the same also, the appellants have filed this appeal seeking further enhancement of compensation urging various grounds contending that determination of market value is contrary to legal evidence on record and law on the question.

( 2 ) LEARNED Counsel for the Appellants raised the following grievances against the impugned judgment and award: -

i) Though the reference Court re - determined the market value on the basis of sale statistics, it has not correctly applied the same and the documents are not properly considered and therefore the findings recorded on the contentious point are not only erroneous but also error in law; ii) That the reference Court was not justified in giving deduction of 53% towards development charges and since the acquired land is in a developed area and it being a small plot, development charges shall not be deducted as held by the Apex Court in the decision reported in AIR 1992 SC 2298;

( 3 ) LEARNED Additional Government Advocate mr. Narayanappa sought to justify the impugned judgment and award.

( 4 ) THE Appellants claimed compensation of Rs. 1,00,000/ - per gunta whereas the LAO awarded only a sum of Rs. 25,000/ - per acre. The reference Court enhanced it to rs. 2,80,000/ - per acre. It works out to Rs. 7,000/ - per gunta. As per the sale deed Ex. P - 4, the valuation is Rs. 30,000/ - per gunta upon which strong reliance is placed by the appellants' counsel. We now proceed to examine what should be the correct market value for the acquired land involved in this case.

( 5 ) EX. P - 10, the certified copy of the award passed by the reference Court in respect of other lands which were also acquired under the same notification, is the basis for the reference Court to determine the market value. In that, the market value was determined at Rs. 13,800/ - per gunta. The same was challenged in this Court. This Court granted stay subject to the condition of depositing 50%. To come to the conclusion that the market value of the acquired land in the instant case is Rs. 2,80,000/ - per acre, the reference Court assigned the reasons as under: -

"accordingly the respondents have deposited 50% of the said award amount and the Hon'ble High court has allowed the petitioners therein to withdraw the amount deposited. Considering this aspect the counsel for the respondents are contending that the Hon'ble High court has prima - facie has come to the conclusion that the petitioners therein are entitled to get the compensation only at the rate of rs. 7000/ - per gunta. The respondents without disputing the said interim order have deposited the amount and the said amount is already released to the petitioners therein. As being contended by the counsels for the petitioners this factor has to be kept in mind. Though as per sale deed at ex. P4 the valuation is at

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