The determination of compensation for acquired land should be based on evidence of comparable sales, and the circle rate is only a guideline and not final for determining market value.

P.C. Verma, J.

1. Both these appeals arise of the same judgment and order passed by the Reference Court and similar questions are involved for determination in these appeals, therefore, they are being decided by this common judgment.

2. First Appeal No. 175 of 2001 has been preferred by the claimant/appellant against the judgment and award dated 30-5-1989 passed by the III Additional District Judge, Nainital in Land Acquisition Case No. 104 of 1983, Singh and Company v. Collector, Nainital, whereby the reference made by the Collector, Nainital under Section 18 of the Land Acquisition Act was allowed partly and the claimant was held entitled for compensation of Rs. 15,89,072.00 for the acquired land and Rs. 2,01,600.00 for the trees and buildings and on these amounts solatium at the rate of 30% along with interest @ 12% per annum on the increased amount of compensation from the date of possession of the acquired property till the date of payment, whereas First Appeal No. 673 of 2001 has been preferred by the Collector, Nainital (respondent in First Appeal No. 175 of 2001) against the aforesaid judgment and award dated 30-5-1989 passed in L.A. Case No. 104 of 1983 for setting aside the order passed by the III Additional District Judge, Nainital and further to confirm the award given by the Land Acquisition Officer, Nainital in the said case. On the other hand, the State/Collector, Nainital has also come up in First Appeal No. 673 of 2001.

3. Brief facts of the case, giving rise to these appeals, are that the State Government had acquired 4-56 acres of land for the construction of offices and residences of Kumaon University, Nainital. The acquiring body was the Kumaon University, Nainital. Notification under Section 4(1) of the Land Acquisition Act (hereinafter referred to as the Act) was made on 31-5-1980 and notification under Section 6 of the Act was made on 7-3-1981. The acquired landed property belongs to the claimant M/s. Singh & Company within the Municipal limits of Nainital. The Special Land Acquisition Officer calculated the price at the rate of Rs. 8.00 per sq. feet and certain deductions have also been made. A deduction of 25% has been made because the acquired land measures a vast area; another deduction of 25% has been made because the land was uneven and great expenditure will be needed to make the land plain. In this manner the compensation payable for the land had been worked out by the Special Land Acquisition Officer at the rate of Rs. 4.50 per sq. feet, which comes to Rs. 8,93,855.00. The trees in the land have been valued at Rs. 69,000.00. The buildings situated in the land have been valued at Rs. 1,32,000.00. Solatium at the rate of 15% has been granted on the compensation payable in respect of land, trees and buildings. A total sum of Rs. 12,59,770.95 has been awarded to the claimants by the Special Land Acquisition Officer, vide his judgment and award dated 28-2-1983.

4. Aggrieved by the said award dated 28-2-1983, the claimant M/s. Singh & Company through its owners made reference through the Collector to the District Judge, Nainital under Section 18 of the Act on 8-4-1983 for decision and determination on the grounds, inter alia, that the land acquired is situate in the heart of the Nainital town and very close to the main market and other important places of Nainital town, such as, O.T.S. Nainital Club, Polytechnic etc. and possesses greater value. The exemplar sale deed relied by the Special Land Acquisition Officer is not so close to the main market and is very far from it. That the land acquired has wrongly been classified and grossly under-valued and the valuation given in the award is quite unreasonable and beyond the actual facts. That from all the sides the land is approachable by motor road. The whole locality is a posh locality. The present rates of this area is in between Rs. 15/- to 20/- per sq. feet but the applicant claimed the value of the land at the rate of Rs. 15/- per sq. feet. Onl