JUDGMENT

By the Court.—This appeal under Section 54 of the Land Acquisition Act, 1894 (hereinafter referred to as the “Act, 1894) has been filed by Krishi Utpadan Mandi Samiti (hereinafter referred to as the “Mandi Samiti”), Moradabad, the defendant-appellant, being aggrieved by award/judgment dated 23.9.1994 and decree dated 7.10.1994 passed by Sri J.S. Yadav, VIIth Additional District Judge, Moradabad in Land Acquisition Reference (hereinafter referred to as “LAR”) No. 102 of 1991.

2. Mandi Samiti proposed to construct a new Mandi at Amroha and for that purpose sent requisition to State Government for acquisition of 16.45 acres of land. Acquisition proceedings were initiated by State Government by issuing notification under Section 4(1) of the Act, 1894 which was published on 27.6.1987 proposing to acquire requisitioned area of land at Village Gulariya, Pargana and Tehsil, Amroha, District Moradabad. Notification under Section 6(1) of the Act, 1894 was also published on 14.9.1987 and possession of acquired land was taken 30.11.1987. Special Land Acquisition Officer (hereinafter referred to as the “SLAO”) after inviting objections made its award dated 4.6.1990 determining market value according to nature of soil, as under:

FdLe tehu	ijrk	{ks=Qy	nj	izekkf.kr izfrdj
ewM+&AA	3&11	13&87	1935&90	266542&98
EkfV;kkj&AA	10&75	2&08	68910&26	143333&84
Nqeu&AA rjkbZ	9&75	1&00	62500&00	62500&00
;ksx	16&45	472376&32

   
3. Aggrieved with offer made by SLAO for compensation and claiming higher market rate, the land owners made applications before Collector for reference under Section 18 of Act, 1894 to District Judge, Moradabad for determination of market value considering the factors mentioned under Section 23 of Act, 1894. The claimants stated that circle rate determined by Collector for the purpose of stamp duty in the area where acquired land is situated was Rs. 150/- to 250/- per sq. meter, hence rate determined by SLAO is unreasonable and extremely low. State Government as well as Mandi Samiti supported market rate determined by SLAO .

4. The Court below, vide impugned award dated 23.9.1994, partly accepted claim of land owner and determined market value for the purpose of compensation at Rs. 60/- per sq. meter. It has further held that claimants are entitled to 30% solatium, 12% additional compensation and 9% interest from the date of possession for a period of one year and thereafter 15 % interest for remaining period till actual payment is made.

5. Mandi Samiti, aggrieved by enhancement of compensation, has come up in this appeal. The actual grievance is confined to the market value determined by Reference Court and the basic contention of learned counsel appearing for appellant is that the aforesaid market value determined by Court below is higher, excessive, unjust and does not depict correct market value on the date when acquisition proceedings commenced vide notification under Section 4(1) of Act, 1894, i.e., on 27.6.1987.

6. The only point up for determination in this appeal is, “whether market value of acquired land determined by Reference Court at Rs. 60/- per sq. meter is just, valid and reasonable?”

7. Sri B.D. Mandhyan, learned Senior Advocate, appearing for appellant, contended that exemplars relied upon by Court below pertain to very small piece of land and therefore, should not have been accepted as valid exemplar for determination of market value. In any case, deduction toward largeness of area ought to have been 75%. He further contended that Reference Court has also failed to apply deduction towards development which was already there in the area where acquired land is situated.

8. Before examining the aforesaid issue, we find it appropriate to remind ourselves with principles land down in past several de

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