NARASIMHAM, C. J.

( 1 ) THIS is an appeal from the award given by the Arbitrator, Hirakud Land organisation, fixing the amount of compensation payable to the respondents for the acquisition of their lands in village Lapang now submerged in the artificial lake formed by the construction of the Hirakud Dam accross the river Mahanadi. The total extent of the lands acquired is 13. 39 acres. The lands consisted of (1) Bahal or first class paddy-lands 9. 07 acres : (2) Berna or second class paddy-lands 2. 52 acres, and (3) Mal or 3rd class paddy-lands -- 1. 80 , acres.

( 2 ) THE lands were acquired under the provisions of Orissa Act XVIII of 1948. Section 7 (1) (e) of that Act says that in fixing the amount of compensation payable, to dispossessed owners, the Arbitrator shall have regard of the provisions of Sub-section (1) of Section 23 of the Land Acquisition Act while estimating the" market value. But the second proviso to Clause (e) of Sub-section (1) of Section 7 of the Act says that where tinder any law or custom the lands acquired are not saleable the market value of such lands shall be such multiples as may be prescribed of the deduced rent to be calculated in the prescribed ma