The compensation for acquired land should reflect its market value at the time of requisition, and compensation assessed under different acquisition acts is relevant. The acquiring party has the right to challenge the award if its interests are affected.

Hasnain Massodi, J.

1. Civil First Appeal on hand is directed against judgment dated 15th December, 2005 of Learned Principal District Judge, Baramulla, in arbitration petition titled Zamindars of Ushkara & Ors. v. Collector. Before dilating on the grounds urged in the appeal, it would be appropriate to have an overview of background facts.

2. Union of India-appellant herein, way back in 1947, occupied an area of land measuring 1477 Kanals and 11/2 Marias, comprising 64 properties, at Ushkura, Khawajabagh, Khanpora and Gutyar, Baramulla, for use of Armed Forces. Sometime after the land was taken over, it was decided to requisition land under the Jammu & Kashmir Requisition and Acquisition of Immovable Property Act, 1968, (RAIP Act, 1968), for defence purposes. The appellant thereafter decided to acquire the land under Jammu & Kashmir Land Acquisition Act. Accordingly 128 Kanals & 9 Marias of land, comprising of 19 properties, were acquired in 1999/2000 and compensation at the rate of Rs. 2 Lakhs per kanal and Rs. 1.65 Lakhs per kanal with 15% solatium was ordered to be paid to estate holder. Rest of the land i.e. 1348 Kanals 121/2 Marias, comprising of 45 properties, though initially requisitioned under aforementioned Act was later also acquired under said Act. The acquisition was followed by an exercise to find out the compensation per kanal to be paid to the estate holders. Though attempts were made to strike a deal, the efforts did not bear any fruit.

3. The State Government confronted with disagreement between the parties, decided to get the matter resolved through arbitration. The deliberations in this regard culminated in SRO 276 of 1995 (No. Home (CL) 93/79, dated 18th October, 1995). The Deputy Commissioner in terms of SRO was conferred power to appoint an arbitrator and refer the dispute to arbitrator so appointed for settlement. Deputy Commissioner, Baramulla, vide No. DCB/LA/Bla-42(2)/96, dated 07.03.1996 referred the matter for arbitration to District & Sessions Judge, Baramulla. The arbitrator was asked to make an award in respect of the above detailed land, acquired under RAPI Act. The communications No. DCB/LA/Bla-42(2)/96, dated 07.03.1996, DCB/LA/Bla-42(2)/96, dated 19.08.1996 as also SRO 276 of 1995 are extracted in extenso in the impugned judgment/award and need not to be reproduced.

4. Learned Principal District Judge, Baramulla, entered reference, allowed parties to submit their statements and settled following issues:

(i) What is the adequate compensation to which land owners are entitled to? OPP

(ii) Relief?

5. However, no significant progress could be made because of litigation emanating from order dated 8th November, 1997, whereby preliminary issue was decided in favour of respondents against the appellants. The parties could pick-up threads after OWP No. 1429/1997, throwing challenge to the order dated 8th November, 1997, was dismissed. Parties were afforded opportunity to adduce evidence in support of their rival stands.

6. The estate holders examined as many as 22 witnesses to substantiate their claim. Appellant on the other hand examined two witnesses to rebut the evidence adduced by the respondents and also to lend support to their claim.

7. The learned District Judge (Arbitrator under Section 8(b) of RAIP Act, 1968) on scanning the evidence adduced by the parties, classified the acquired property under four heads i.e. (i) Plain land within one kilometer from National Highway and other roads, (ii) Plain land beyond one kilometer from National Highway and other roads, (iii) Labroo land within one kilometer from National Highway and other roads and (iv) Labroo land beyond one kilometer from National Highway. Learned judge proceeded to award compensation as under:-

(i) Plain Land within one kilometer from National Highway and other roads @ Rs. 2.65 lakhs per kanal.

(ii) Plain land beyond one kilometer from National Highway and other roads @ Rs. 2.30 lakhs per kanal.

(iii) Labroo land within one kilomet