The State Government is the real party interested in challenging the enhanced compensation determined by the court on reference under Section 18 of the Land Acquisition Act, 1894, and therefore, the appeal filed by the State Government is maintainable.

JUDGMENT - Chandurkar, J.

1. This appeal arises out of proceedings for acquisition of survey No. 2, area 8 acres 2 gunthas, situated at Paused owned by the respondents. A notification under Section 4 of the Land Acquisition Act, 1894, issued by the then Government of Madhya Pradesh on 29-3-1955 in respect of 8 acres 2 gunthas of land out of survey No. 2 of Paused, district Yeotmal, as the land was needed for construction of Government I. E. M. Girls School. Possession of 8 acres of land was taken under the emergency clause in Section 17 (2) of the Act on 29th July, 1955. This land originally belonged to respondent No.1 Bapurao and his wife Laxmibai respondent No.2, who effected a partition between themselves and their sons by a partition deed dated 7-12-1949. By virtue of this partition half the area of the filed fell jointly to the share of Bapurao, and Laxmibai and six remaining respondents, who were all sons of Bapurao, got equal share in the remaining half portion of the land. Two acres and 10 gunthas out of this land were diverted for non-agricultural purposes, but admittedly till the date of taking possession the field was being put in agricultural use.

2. Before the Land Acquisition Officer the landholders made a claim for a total compensation of Rs. 2,00,919/- which included Rs. 7000/- on account of price of the well in the field and Rs. 650/- on account of price of the standing trees. There were 17 trees on the Dhura. The Land Acquisition Officer determined Rs. 5200/- as market value of 8 acres of land Rs. 150/- as compensation for the well, Rs. 100/- as compensation for 17 trees and Rupees 817/8 on account of solatium of 15% for compulsory acquisition of land. He thus awarded a total compensation of Rs. 6267/8/- to the landholders.

3. The landlords did not accept the award and they, therefore, asked for a reference to be made to the Civil Court. They file an application under Section 18 of the Act with the Naib Tahsildar attached to the office of the Land Acquisition Officer on 4th July, 1959. In this application they claimed compensation at the rate of 50 Np. per square foot and they thus made a claim of Rs. 1,74,240/- as the value of 8 acres of land at that rate. They claimed Rs. 7,000/- on account of compensation for the well and Rs. 650/- as compensation for the trees. In addition to these they claimed Rs. 1126/- which was the amount of premium, which was paid by them for getting 2 acres 10 gunthas of land converted to non-agricultural purposes. In addition to these amounts Rs. 27,442/- were claimed by way of solatium at 15% under Section 23 (2) of the Act. The total compensation claimed by the landlords thus was Rs. 2,10,467/-. They also wanted the compensation to be paid to all the respondents and not only to the respondent No.1, as was done by the Land Acquisition Officer, because, according to them, the land survey No.2 was already partitioned in 1949 between all the respondents. The Land Acquisition Officer had not awarded any interest and they, therefore, claimed that they were entitled to the interest under Sections 28 and 34 of the Act from 29th July, 1955 till actual payment of the amount was made to them.

4. The quantum of compensation claimed by the respondents was contested by the State. According to the State, the compensation awarded by the Land Acquisition Officer was proper and the respondents were not entitled to claim Rs. 1126/- which was the premium paid to the State Government, because, according to it, the land itself was being valued as the land used for non-agricultural purposes.

5. After the reference was made by the Land Acquisition Officer an application was filed on behalf of the State alleging that the award of the Land Acquisition Officer was communicated on 25-5-1959 to the counsel who appeared for the landlords before the Land Acquisition Officer and that the period of limitation for presenting an application for reference under Section 18 of the Act expired on 6th July, 1959. According

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