The potential value of land for industrial purposes and post-notification sales can be taken into consideration in determining the market value of the acquired land for the purpose of compensation under the Land Acquisition Act.

( 1 ) THESE are two appeals by the owners in land acquisition cases. This judgment will govern them both.

R. F. A. 363 of 1968 This is an appeal from the order of the Additional District Judge dated May 28 1968. The appellant s land measuring 28 big has I biswas and 57 big has 10 biswas forming part of the revenue estate of Bahapur was acquired By the Union of India. Notification under S. 4 of the Land Acquisition Act (the Act) was issued on January 2, 1957. Notification under S. 6 of the Act was. issued. on November 20, 1957. In due course the Land Acquisition Collector made the award. He offered compensation at Rs. 1000. 00 per bigha to the appellant. The appellant did not accept^the offer. He sought a reference to the court under S. 18 of the Act for the proper determination of compensation.

( 2 ) ON reference the Additional Judge fixed the market value of the acquired land at Rs. 40. 00 per square yard. Now the owner appeals for fur ther enhancement and claims Rs. 7000. 00 per bigha.

( 3 ) THE Additional District Judge found as afact that the land in question abuts on the railway line on the western side and was specially suited for industrial purposes. It was an excellent site for industrial activity because the appellant s land had the special advantage of a railway siding. The land also abutted on a kucha road, a cart road as it was called.

( 4 ) IN 1955 a notification dated December 7, 1955 which was at once under Ss. 4, 6 and 17 of the Act was issued for the public purposes connec- ted with the setting up of an "industrial estate" in this locality of Okhla. This notification immediately preceded the notification of January 2, 1957 with which we are concerned in this case. Notification dated January 2, 1957 was also issued for the same public purpose, namely, "industrial estate". There was evidence before the judge that at the material time the neighbouring lands were humming with activity and the industrial estate was coming into existance, though in phases. The Archibishop of Delhi, who was the President of Delhi Simla Catholic Archdiocese, appellant in this case, entered the witness box. He said : "when this land was acquired Okhla industrial estate was coming up. " This showed that the land had potential value. It was contiguous to the industrial estate. It abutted on the railway line. On this material the judge concluded thus :

"the land in dispute thus could have double advantage, one of the road and the other of the railway line (for railway siding ). "on the value of the land as an industrial site he said ;

"the lands nearby were being used for industrial purposes and during the span of one year industrial estate of Okhia had also come up. This also appreciated the price of the land in dispute during the said period. "

( 5 ) THAT the land occupied an advantageous position no one can deny. Now we have an instance of a sale dated April 10, 1957 which was accepted by the judge as a guise to this conclusion. On April 10, 1957 an area measuring 5/6 share in 1708 square yards was sold for a sum of Rs. 9607. 50 p. It works out to a price of Rs. 6. 75 p. per square yard. In terms of per bigha it works out to Rs. 6800. 00 per bigha. The learned Additional District Judge thought that the price at. which it was sold was Rs. 5. 62 per square yard. This was a mistake. In fact 5/6 of 1708 square yeards (and not 1708 square yards as the judge thought) was sold. The price works out to Rs. 6800. 00 per bigha. This was a source of error in his judgment which, in my opinion, lead to a wrong estimate of the market value of the land.

( 6 ) THE transaction of April 10, 1957 is a bonafide sale. No one has said that this was a collusive transaction. A part of Khasra No. 345 was sold at Rs. 6. 75 per square yard. A part thereof had been sold as early as September 9,1953 at the price of Rs. 3. 37 per square yard. This is clearly indicative of the fact that between 1953 and 1957 prices were rising in this area.

( 7 ) THE