( 1 ) THIS appeal is directed against an order made by the District Judge Kutch in Land Acquisition Reference No. 1 of 1958 awarding a total compensation of Rs. 1 20 94 to the respondent for acquisition of a piece of land bearing Survey No. 910 situate on the Bhachaurahapar Road in Kutch District. The land belonged to the respondent which is a Limited Company carrying on business inter alia of ginning cotton and it was taken possession of by the Government of Kutch on 19 November 1949 under an arrangement that some other land suitable for the requirements of the respondent would be given by the Government of Kutch to the respondent in exchange for the land so taken over. At this time the Land Acquisition Act 1894 was in force in Kutch but no notification under sec. 4 (1) was issued by the Government of Kutch in respect of the land and no proceedings were adopted under the Act for acquisition of the land. The possession of the land was taken by the Government of Kutch for construction of the State Guest House and the Court house for the Subordinate Judge at Bhachau and these buildings were constructed on the land after possession of the land was taken though no steps were taken to vest the title to the land in the Government of Kutch either by a conveyance from the respondent or by acquisition. It appears that the Government of Kutch was not in a position to give to the respondent in exchange equivalent land acceptable to the respondent and the arrangement upon which the land was originally taken order by the Government of Kutch therefore fell through but by this time the Government of Kutch had already constructed buildings on the land and the Government of Kutch therefore issued a notification under sec. 6 of the Act declaring that the land was needed for a public purpose. The notification directed the Deputy Collector in charge of the Eastern Sub-division under sec. 7 to take order for acquisition of the land. The Deputy Collector accordingly issued the necessary notices under sec. 9 and after holding the prescribed inquiry made an award dated 22nd April 1957 under sec. 11 determining the true area of the land as 6 acres and 35 1/2 gunthas and awarding as and by way of compensation Rs. 585-44 np for the land valuing it as agricultural land and Rs. 3 828 for the well and pipeline in the land and Rs. 662/as 15 per cent solatium under sec. 23 (2) making in all an aggregate sum of Rs. 5 75 np. The respondent was dissatisfied with this award and he therefore applied to the Deputy Collector to make a reference and the Deputy Collector accordingly made a reference to the District Court under sec. 18 of the Act. The respondent raised a two-fold objection against the award in the Reference. The first objection was as regards the measurement of the band. The respondents contention was that the true area of the land was 8 acres and 28 gunthas and not 6 acres and 35 1/2 gunthas as sound by the Deputy Collector. This contention was however given up at the hearing of the Reference and the true area of land was accepted as 6 acres and 35 1/2 gunthas. The other objection was to the amount of compensation both in respect of the land as also in respect of the well and pipeline. But so far as the well and pipeline were concerned no evidence was led on behalf of the respondent to show that the valuation of Rs. 3 828 made by the Overseer of the Public Works Department was erroneous and the learned District Judge therefore negatived the objection in so far as it related to the amount of compensation in respect of the well and pipeline. The objection as to the amount of compensation in respect of the land was. however found by the learned District Judge to be well-founded. The respondent had claimed before the Deputy Collector compensation at the rate of Rs. 6/per square yard on the basis that the land was a building-site but the Deputy Collector had proceeded to award compensation on the basis that the land was agricultural land