The rate for a small plot cannot be a safe guide for determining the market value of a large area of land. Necessary deductions and adjustments are required when using rates fixed for small plots to determine the rate for a large plot.

M. Katju, J.—These four connected appeals are being disposed of by a common judgment.

2. Heard Sri B. D. Mandhyan learned counsel for the appellants and Sri Pankaj Mittal for respondents.

3. These appeals have been filed against the judgment of the IVth Additional District Judge, Meerut dated 25.5.1993 in Reference under Section 18 of the Land Acquisition Act by which compensation awarded in the award by Special Land Acquisition Officer dated 4.12.1987 has been enhanced from Rs. 9.92 paise to Rs. 74 per square yards for the land acquired.

4. The respondent in First Appeal No. 522 of 1993 Khushi Ram was Bhumidhar of Khasra No. 24 area 7 bigha 3 biswa and 3 biswansi in village Latifpur Baraut, district Bagpat. This land was acquired for the Krishi Utpadan Mandi Samiti, Baraut and an award was given on 4.12.1987 under Section 11 of the Land Acquisition Act. Aggrieved against the award Khushi Ram filed a reference application and the matter was referred to the court below for enhancement of the compensation. It was alleged by Khushi Ram that the compensation awarded is much less than the market value of the land. It was alleged that the said land is adjacent to Gurana Baraut Abadi and was very fertile and was a land of class one category having facility for irrigation. It was alleged that the land has great potential and hence the award was not correct and unjustified. It was further alleged that the exemplar relied in the award was not proper and was of very low rate and did not reflect the correct value. He claimed that the compensation should have been awarded at the rate of Rs. 90 per square yard instead of Rs. 9.92.

5. The appellant contested the reference and alleged that the land was used for agriculture purpose. It was denied that the land in dispute was adjacent to the road going from Meerut to Gurana and was adjacent to the Baraut Abadi. It was alleged that the valuation was done at the circle rate. It was denied that the rate awarded was not proper and the exemplar relied by the SLAO was not proper.

6. The court below framed six issues and we are here concerned herewith the finding on issue Nos. 1, 2 and 3. All these issues are connected and are based on the same evidence. These issues related to the question of adequacy of the compensation.

7. On behalf of the claimants P.W. 1 Khushi Ram, P.W. 2 Suresh Chandra Lekhpal and P.W. 3 Arun Kumar Goel Amin, Land Acquisition office, Meerut were produced while on behalf of the Mandi Samiti D.W. 1 Shri Prasad Sharma, Secretary of Mandi Samiti was produced. Both sides also adduced documentary evidence. This case was heard along with the other similar cases. In the impugned judgment reference has been made to the Government order dated 6.7.1981 by which the State Government had directed that the highest exemplar should be the basis of the award. This circular has referred to the previous G.O. dated 24.4.1973. The court below has relied on the exemplar dated 27.6.1983. In this exemplar the compensation awarded was at the rate of Rs. 40 per square yard.

8. It may be mentioned that the aforesaid exemplar dated 27.6.1983 had been sent to the A.D.M. (Finance) for the purpose of determining the stamp duty. By office order dated 22.2.1984 A.D.M. (Finance) was of the opinion that in fact the said land has been undervalued to avoid paying the full stamp duty and the real value was Rs. 74 per square yard as per the circle rate. This order of the A.D.M. (Finance) dated 22.2.1984 is at page 120 of the respondents paper book in this appeal. The State of U. P. issued directions on 29.11.1988 that the compensation should be at the rate of Rs. 74 per square yard vide paper 38 Ga page 58 of the respondent’s paper book.

9. It was urged by Sri B. D. Mandhyan learned counsel for the appellants that the exemplar relied on by the court below is of a small area whereas the land which has been acquired for the Mandi Samiti is of a large area. Hence he has urged that the said exemp