In cases of land acquisition, the potential value of the acquired land, taking into account its future possibilities, should be added to the estimated market value to arrive at the compensation amount.

Judgement

DAS, J. :- In close proximity to the Rourkela Steel Plant and the Fertiliser Factory where an industrial complex is growing up, A.34.38 dec. of land were acquired by notification under S. 4 (1) of the Land Acquisition Act of 1894 dated 13-5-1969. There is no dispute that the acquisition is also for industrial and building purposes. The Land Acquisition Officer awarded compensation of Rupees 69,306.46. The respondents asked for references under S. 18 of the Act and in the three references the learned Subordinate Judge of Sundargarh enhanced the compensation amount to Rs. 9,75,240 inclusive of 15% of statutory compensation and 25% for potential value of the land upon determining the market value at the rate of Rs. 200 per decimal. As against this decision, the State of Orissa preferred three appeals to this Court which were analogously heard by our learned brother S. K. Ray, J. and were dismissed. These three Letters Patent Appeals against the common decision of the learned single Judge have been heard analogously and are being disposed of by this judgment.

As it appears from para 3 of the judgment of the learnedsingle Judge, two points only were raised by the State Government, namely, (a)the addition of 25% to the estimated market value as potential value of theacquired land was illegal as that amount had already been taken into account inthe fixation of the market value of the land and could not be assessed againand separately; and (b) since the sale deeds produced on behalf of theclaimants were in respect of small parcels of land, they could not provide the requisiteguideline for assessment of market value of extensive areas as acquired in thecase. Both the points were negatived by our learned brother and the decision ofthe learned Subordinate Judge was confirmed.

2. The learned Advocate-General contends that determination of value of the lands suffers from error of record and the learned single Judge has omitted to consider the fact that the sale deeds produced by the claimants were in respect of small parcels of land. There is no evidence as to the distance and relative locations of the lands acquired and the lands covered by the sale deeds produced by the claimants. There is also no evidence about similarity of the lands acquired and the lands covered by the sale deeds produced by the claimants. There is absence of evidence of growth of industries in the locality and no reliance can be placed on Exts. 1, 2, 3 and 5 which are sale deeds produced by the claimants.

3. The claim under reference was at the rate of Rs. 30,000 per acre. The Court has allowed compensation at the rate of Rs. 20,000 per acre. The learned single Judge has held that the materials available on record give a picture that there is gradual appreciation of market value of the land in the locality and even before the date of acquisition, various industries had sprung up all round the acquired lands and Government have in fact started selling land in the vicinity of the acquired lands at a very high rate i.e. Rs. 95,000 per acre. It has also been held that the existing advantages of the acquired lands were great and their future possibilities and potentialities were equally high. In view of the increasing growth of the various factories and offices there was great possibility of the acquired lands being used for building purpose and even for setting up of factories. The learned single Judge has observed that so long as Rourkela Steel Plant has come to stay, the uncertainties of future possibilities have almost disappeared and in such a case where instances of price paid within a reasonable time of the date of acquisition in bona fide transaction of purchase of land adjacent to the lands acquired and possessing similar advantages are wanting, instances of sale of small parcels of land within 4 to 5 years prior to the date of acquisition with all evidence of general and gradual appreciation of market value of land with all existing advantages and future