The market value of acquired land under the Land Acquisition Act, 1894, should be determined by considering the potential of the land, its condition, and the prevailing market rates. The principle of belting should be avoided to ensure fairness and uniformity. The landowners are entitled to severance compensation, solatium, and interest on the enhanced compensation amount.

M.M.PUNCHHI, J.

1. Almost a decade ago the State of Haryana, as would be evident, went on an acquiring spree in the revenue estate of Panipat, a Sub-Divisional town in district Karnal (Haryana). Taking aid of the Land Acquisition Act. 1894, (hereinafter referred to as the Act ) it took within a span of about 10 months large tracts of urban land in three strokes by issuance of three successive notifications under Sec.4 of the Act. These are referred to in the succeeding paragraphs.

2. On Oct. 29, 1976. notification under Sec.4 of the Act was issued to acquire 5 Acres 5 Kanals and 5 Marlas of land to build a Handloom Complex. On Nov. 4. 1976, notification under Sec.4 of the Act was issued to acquire 11 Bighas 14 Biswas of land (approximately 2 Acres and 3 Kanals of land) for the purpose of building Staff Quartes for the Market Committee. Panipat. Lastly, on Aug. 30, 1977, notification under Sec.4 of the Act was issued to acquire a large chunk of land measuring 64.50 Acres and 173.39 Acres, total 237.89 Acres, to be utilised for residential, commercial and industrial purposes for floating Urban Estates. The lands involved were either in Taraf Rajputan of Taraf Afghana. These terms had some revenue significance but for present purposes they are of no significance.

3. For the acquisition beginning on Oct. 29, 1976 (Hereinafter referred to as First Acquisition), the Land Acquisition Collector vide award dt. Sept. 30, 1977 awarded Rs. 10/per square yard as compensation to the landowners. The aggrieved landowners had the matter referred to the District Court. Shri Gorakh Nath, Additional District Judge, vide award dt. Nov. 19, 1981, assessed the market value of the land acquired at the rate of Rs. 25/- per square yard.

4. Keeping apart for the moment, the acquisition initiated on Nov. 4, 1976 (hereafter referred to as the Second Acquisition ) it would serve better to take first into account the acquisition initiated on Aug. 30, 1977 (hereafter referred to as the Third Acquisition ). Yet the Land Acquisition Collector for the Second Acquisition had awarded Rs. 4.50 per square yard as the market value of the land. For the Third Acquisition, the Land Acquisition Collector, however, vide his award dt. Feb. 14, 1979, awarded Rs. 7.23 per square yard as the market value of the acquired land. The Collector in fact had passed simultaneously on Feb. 14, 1979, two awards; one pertaining to 64.50 Acres in Taraf Rajputan and the other to 173.39 acres in Taraf Afghana, both carrying the same market value at the rate of Rs. 7.23 per square yard.

5. The aggrieved landowners approached the District Court for enhancement of the compensation. The cases of the Third Acquisition, at it appears, came to be decided by two different officers - Shri B.L. Gulati and Shri K.C. Gupta, both Additional District Judges, Karnal. The cases of the Second Acquisition, however, came to be decided by Shri B.L. Gulati. In order of time, while dealing with a case of the Third Acquisition, on Oct. 29, 1982, he raised the market value of the land to Rs. 17/- per square yard. In another decision relating to the third acquisition, Shri B.L. Gulati, on Mar. 15, 1983, gave Rs. 21/- per square yard as market value; apparently the average of Rs. 25/- per square yard granted by Shri Gorakh Nath, Additional District Judge, in the First Acquisition and Rs. 17/- per square yard granted by him in one of the cases of the Third Acquisition. Shri B.L. Gulati, however, while dealing with the cases relating to the Second Acquisition on Aug. 29, 1983, and Nov. 29, 1983, awarded Rs. 25/- per square yard as the market value of the land keeping in view the rates awarded in the decisions earlier made by him.

6. The third Presiding Officer, Shri K.C. Gupta, Additional District Judge, Karnal, vide decision dt. May 18, 1984, taking into account the decisions of his colleagues, afore referred to, in reference applications of some landowners awarded Rs. 25/- per square yard of land abutting