An agreement between the claimants and the acquiring body, although it furnished good evidence of the market value of the land, should not be regarded as binding on the Special Land Acquisition Officer in the determination of the market value.

JUDGMENT - Kania M.H. , J.:- This is a reference under section 18 of the Land Acquisi­tion Act, 1894 (hereinafter referred to as “the said Act”) for the determina-tion of compensation in respect of acquisition of certain lands situated at village Borla, in Kurla, Bombay.

2. The proceedings arise out of the acquisition of a large area of land admeasuring 30 acres 34 gunthas and 4 annas, equivalent to 1,49,344.25 sq. yards, situated at village Borla in Kurla. Three notifications under sec­tion 4 of the said Act declaring the intention to acquire the said lands, were published on 27-11-1958. On 14-10-1960, an agreement was arrived at between the Claimants and the Bombay Municipal Corporation, being the acquiring Body, for whose purposes the aforesaid lands were being acquired-under the said Act. The said agreement was arrived at between the Claimants as representing their families including certain minors and the Bombay Municipal Corporation as well as a confirming party. The recitals to the said agreement show that the Improvements Committee of the said Corporation by its resolutions, dated 8th September 1950 and 22nd Decem­ber 1959 respectively had sanctioned, inter alia, the acquisition of certain lands situated at Borla village, admeasuring about 50 acres and 33 1/4 gunthas i. e. 2,44,813.25 sq. yards described in the First and Second Schedule thereto and the said lands were notified under section 4 of the said Act for acquisition under notifications published in the Bombay Government Gazette (Part I) dated 27th November, 1958. The recitals further show that by the said resolutions, the Improvements Committee and the Corporation had also agreed to purchase the land situated at Borla village admeasuring 5 Acres and 39 Gunthas i.e. 28,919 Sq. Yds. or thereabouts which was also delineated on a plan annexed to the said agreement. There is a further recital in the agreement which runs as follows :

“AND WHEREAS the Corporation pursuant to the said resolutions proposed to acquire the said land belonging to the owners at the value of Rs. 4.25 per square yard inclusive of all interests in the land”..

As far as the clauses of the agreement are concerned,” clause No. 1 records the consent of the owners and the consent of the Corporation to the acquisi­tion of land admeasuring 50 acres and 23 gunthas which has been delineated on a plan annexed to the agreement and that the confirming party has con­firmed such acquisition. Clause 2 runs as follows:

“It has been agreed between the parties that for the purpose afore­

said the market value of the said property including all interest therein shall be computed at the rate of 4.25 per square yard for the said piece of land under the terms and provisions of the Land Acquisition Act. No extra compensation will be given under the Act for timber or fire­ wood or wells and the parties will request the Special Land Acquisition Officer to pass an award as per the terms and provisions of the Land

Acquisition Act for the compensation of the acquisition of the said land as hereinbefore mentioned for the actual area of the land ascertained by a joint survey, “

The rest of the clause is not material for the purpose of this reference. Clause 3 shows that the owners agreed to sell and the Corporation agreed to purchase pieces of land admeasuring 5 acres and 39 gunthas which have been more particularly described in the Third and Fourth Schedules to the agreement at and for the price of Rs. 4.25 per sq. yard. Rest of the clauses are not material. The possession of the notified land was taken on the same day, namely, 14th October 1960. Thereafter, section 6 notification was issued and an Award was made and declared on 5th December 1970 in respect of the acquired land. The Award makes somewhat interesting read­ing. In dealing with sales of lands between 1957 and 1959, the Land Acquisition Officer has pointed out that, in the background which he has referred to, only certain sales which a

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