1. M.F.A. No.7564/08 is filed by the Special Land Acquisition Officer, MUDA, challenging the legality and correctness of the judgment and award passed by the III Addl. Civil Judge, Mysore, dated 18.3.2008 in LAC No.63/02 and Cross Objection No.258/08 is filed by the respondent who lost the land on account of the acquisition by the appellant. In the circumstances appeal and cross objections re heard together.

2. We have heard Sri P S Manjunath, the learned counsel for the appellant and Mr. C S Kothavale, learned counsel who is appearing for Sri G P Manjunath for the respondent.

3. The facts leading to this case are as hereunder:

39 guntas of land situated in Sy.No.9/1 of Nadanahalli village, Mysore Taluk was notified for acquisition on 30.01.1997 under Section 4(1) of the Land Acquisition Act. Possession was taken on 02.12.1998. General award was passed on 04.03.1998 and individual award was passed on 12.8.1998. The Land Acquisition Officer determined the market value at the rate of Rs.1,05,000/-per acre. On the ground that the award passed by the Land Acquisition Officer is inadequate, the owner sought a reference under Section 18 of the Land Acquisition Act for determination of the actual market value. Accordingly, the matter was referred to the Reference Court. Before the Reference Court the owner of the property was examined as PW.1. He relied upon Exs.P.1 to P.8. On behalf of the Land Acquisition Officer one Malegowda was examined as RW.1. Respondent relied upon Exs.R.1 to R.10. The Reference Court formulated the following points for its consideration.

1. Whether the reference made is in time?

2. Whether the compensation awarded by Spl.Land Acquisition Officer is inadequate?

3. Whether the claimant is entitled for enhanced market value?

4. What order?

4. The Reference Court after considering the entire evidence held points 1 to 3 affirmative and determined the market value of the land acquired at the rate of Rs.10,61,000/- per acre and the Reference Court also awarded other statutory benefits. Being aggrieved by the determination of the market value at the rate of Rs.10,61,000/-per acre the Land Acquisition Officer has come up in this appeal on the ground that the respondent was not entitle for any enhancement, with a request to confirm the award passed by the Special Land Acquisition Officer.

5. Per contra the cross objection is filed by the owner of the land on the ground that in addition to the market value determined by the Reference Court, hence entitled for enhancement of Rs.2,00,000/-per acre with other statutory benefits. In the circumstances we have heard the appeal as well as the cross objections.

6. Mr. P S Manjunath, the learned counsel for the appellant contends that the Reference Court has committed a serious error in determining the market value of the land acquired based on EX.P.7. According to him Ex.P7 could not have been relied upon by the Reference Court in order to determine the market value of the land in question. According to him the property contained under Ex.P.7 and the notified lands are not comparable. The property covered under Ex.P7 is a site situated within the midst of a well developed residential layout within the limits of Mysore City Corporation and in which layout was formed and sites were allotted in the year 1986 by the MUDA. The distance between the properties contained in Ex.P5 to P7 and the land notified is more than 11/2 kms. And he further contends that the calculation arrived at by the Reference Court in regard to the extent of sites formed in one acre of land and the value arrived at in regard to the cost of development a without any basis. Therefore he requests the Court to allow the appeal and set aside the order passed by the Reference Court.

7. Per contra Sri C S Kothavale, the learned counsel for the respondent contends that even though the notified land is an agricultural land as the land in question is situated at the outskirts of Mysore city and which