Hon’ble Amitava Lala, J.—Since all the aforesaid first appeals are connected and have been heard analogously, the same are being decided by this common judgment and order having binding effect upon all the aforesaid appeals. The First Appeal No. 42 of 1997, which has been dealt with first herein, will be considered as leading case.

2. The facts in brief giving rise to the aforesaid appeals are as under :

First Appeal No. 42 of 1987

This appeal has been filed by the State of Uttar Pradesh through the Collector, Gorakhpur and Union of India through the Ministry of Defence, New Delhi. Initially a notification under Section 4 of the Land Acquisition Act, 1894 (hereinafter called as the ‘Act’) was issued on 14th March, 1970, which was subsequently modified and fresh one was issued on 26th October, 1971. By way of such notification land situated in Village Mahadeo Jharkhandi, Tukra No. 3, District Gorakhpur was acquired. The acquisition was made by the State of Uttar Pradesh for the Union of India. The purpose of acquisition was construction of residential quarters for the married persons of Air Force posted at Gorakhpur. Possession of the land was taken on 15th December, 1971 and total acquired area, subject matter in this appeal, is 0.51 acres. Land Acquisition Officer (hereinafter called as the ‘L.A.O.’) by its order dated 31st July, 1975 awarded compensation at the rate of Rs. 8,000/- per acre. Thereafter application for reference under Section 18 of the Act was made on 6th December, 1980, which was registered as L.A.R. No. 185 of 1981. Before the Court of reference, the case of claimants was that the land is situated quite adjacent to the Gorakhpur Cantt. station of North East Railway, North East Railway Bridge Workshop, Signal Workshop, Nina Thapa Inter College and other markets like Girdharganj @ Takiya Bazar, Turk Nala Bazar and Padri Bazar; the land of close proximity was being developed for a building site where Madan Mohan Malviya Engineering College and Gorkha Regiment Convent School, Aerodrum and Colony for Air Force Officers have already been constructed; the land has got potential value of the building site. The claimants demanded compensation of the land at the rate of Rs. 4/- per square foot; compensation for severance of land from other portions thereof Rs. 10,000/- and compensation for standing crops, which they could not harvest at the time of taking over possession. To the aforesaid reference, objection was filed on behalf of the State of Uttar Pradesh alleging that the L.A.O. had correctly assessed the market value of the land @ Rs. 8,000 per acre; the claimants were given sufficient time to harvest the crop and in any case no damage was caused to them; the claimants suffered no loss for the severance of the land from their holdings; and the land had no potential value of a building site. Court of reference vide its judgment dated 25th August, 1986 awarded compensation of the land at the rate of Rs. 1.25 per square foot i.e. Rs. 54,500/- per acre, solatium @ 30%, interest @ 12% from the date of notification under Section 4 of the Act till the date of taking over possession and interest @ 9% from the date of award till the date of actual payment. Prayer for compensation towards severance of land and crops was rejected. Against this judgment of the Court of reference, present appeal has been filed.

First Appeal No. 43 of 1987

State of U.P. through the Collector, Gorakhpur has filed this appeal. Notification under Section 4 of the Act was issued on 6th January, 1972 for acquiring the land situated in Village Mahadeo Jharkhandi, Tukra No. 3, District Gorakhpur. The acquisition was made by the State of Uttar Pradesh for the Union of India. The purpose of acquisition was construction of hospital for Air Force personnel. Possession of the land was taken on 19th March, 1972 under Section 17 of the Act without determining the amount of compensation. The area of land acquired, subject matter of this appeal, is 16.47