The court emphasized that the best evidence of land value in acquisition cases is based on contemporaneous sales of similar land, considering location and potential. The court upheld the referral court's compensation assessment grounded in market value evidence.

JUDGMENT :

B.P. Routray, J.

1. Present appeal is directed assailing order dated 4^th March 1982 of the learned Sub-Judge, Bargarh passed in a reference under Section 18 of the LAND ACQUISITION ACT , 1894 in L.A. Misc.Case No.141 of 1978.

2. The land of the claimant-Respondent measuring Ac.0.49 decimals in M.S. Plot No.8391 of nature ‘Berna’ in mouza Bargarh was acquired vide declaration No.28338 dated 26^th April 1978 published in Odisha Gazette No.675 dated 16^th May 1978 for construction of Cooperative Training Institute, along with some other lands. The compensation amounting to Rs.4,508/- was assessed by the Land Acquisition Authorities including additional compensation and statutory interest for the said land belonged to the claimant, which was paid to him and received with objections.

3. The claimant then preferred an application under Section 18 of the LAND ACQUISITION ACT , 1894 praying for enhancement of the compensation amount and his contention is to count the market value of the acquired land at Rs.2,000/- per decimal at least. It was contended by the claimant that looking to the potentiality of the land and its location and other circumstantial factors, the valuation assessed by the authority at Rs.8,000/- per acre is too less and therefore, the same should be enhanced.

4. The claimant examined three witnesses on his behalf to support his claim. P.W.2 is the claimant himself. P.W.1 is the Mukhtar of a vendor in regard to the lands in the locality, who justified about the sale transaction made under Exts.1 and 2 at the rate of Rs.11,000/- per Ac.0.04 decimals and Rs.5,000/- for Ac.0.02 decimals vide Sale Deed Dated 18^th October 1976 and 6^th April 1976 respectively. P.W.3 is a private Amin, who spoke about potentiality of the acquired land with reference to the sites in the neighborhood.

5. The Opposite Party-Authority (present Appellant) examined one witness as O.P.W.1, who was the Amin for acquisition of the said lands and he justified that reasonable compensation amount has been paid in respect of the acquired lands on the basis of sale statics for the relevant period, i.e. 19^th September 1997 to 20^th December 1997 in regard to Berna kissam of land of the locality.

6. ‘Berna’ kissam of land justifies the nature of land fit for construction of houses sites. The learned Sub-Judge taking into such kissam of the acquired lands and its potentiality as well as its location, which is proximate to Bargarh Railway Station and other factors has calculated the market value of the land at the relevant time at Rs.500/- per decimal and accordingly, assessed the total compensation amount to the tune of Rs.29,400/- in total, including additional compensation at the rate of 15% and 5% towards potential value. He thus finally directed for payment of differential compensation amount to the tune of Rs.24,000/- along with statutory interest at the rate of 6% per annum from 26^th April 1978 till realization.

7. Challenging the same, it is submitted on behalf of the State authorities that such assessment for value of the land at Rs.500/- per decimal by the learned Sub-Judge is without any basis. It is further submitted that when the sale statics produced by the authorities for the purpose of assessing the market value of the land is not disputed by the claimant, the abrupt increase of the same to Rs.50,000/- per acre is illegal and arbitrary.

8. On perusal of the record, it is seen that proximity of the acquired land belonging to the claimant near Bargarh Railway Station as brought in evidences of the witnesses and as per the sketch map under Ext.3 is left undisputed. The sale deed under Exts.1 and 2 showing valuatio