The determination of fair compensation under the Land Acquisition Act should consider the market value of the land based on its use and potential development.

Judgment

P.K. Jaiswal, J.-

Both these appeal are filed against the order dated 23.12.1999 passed by District Judge, Dewas in land acquisition case no.5/98, whereby reference Court enhanced the amount of compensation from Rs.7,23,369/-to Rs.70,69,887/-. The reference Court after deducting the amount awarded by the land acquisition officer directed to pay a sum of Rs.63,46,518/-as compensation to the land owner. The reference Court also awarded interest @ of 9% per annum under Section 34 of the Land Acquisition Act, 1894 for the period of 1.10.1997 to 30.9.1998 amounting to Rs.2,79,000/-as per sub para 2 of para 21 of the impugned order.

2. The facts of these two appeals are identical. For the sake of convenience, the facts are being taken from First Appeal No. 95/2000.

3. Respondent's land measuring 23887 Sq.ft (0.222 hectares) in survey no.391 at village Lohar Pipliya, Tehsil and Distrcit Dewas, was acquired pursuance to the preliminary notification published on 16.12.1994.

4. The land acquisition officer had granted compensation @ of 7.81 per Sq. ft and awarded Rs.4,77,389/-towards site development, loss of profit and shifting expenses of business to other place. Thus, the total amount of Rs.7,23,369/-was awarded by the land acquisition officer by its award dated 4.10.1997 passed in reference case no.4/A-82/94-95 under Section 11 of the Land Acquisition Act, 1894 (herein after referred to as "the Act") The reference Court on appeal enhanced the amount of compensation from Rs.7,23,369/-to Rs.70,69,887/-with interest as per para 21 of the impugned order. The compensation of land was calculated @ of Rs.150/-per Sq. ft.

5. The preliminary notification under Section 4 (1) of the Act was issued on 16.12.1994. The declaration under Section 6 of the Act was issued on 15.12.1995. The land was acquired for construction of Indore-Dewas four lane bye-pass road between Indore and Dewas. The landowner's petrol pump is located on a piece of land sought to be acquired and he is running his business of diesel and petrol in the name of style of 'Mahashakti Filling Point' at Kshipra, District Dewas. The said petrol pump is situated on National Highway popularly known as A.B. Road. The proceeding of acquisition was challenged by land owner by filing Miscellaneous Petition No.84/96, which was dismissed on 26.3.1997. During pendency of Letters Patent Appeal settlement had arisen between parties on 23.7.1997. In terms of settlement the LPA was disposed of. After disposal of LPA possession of the land was given to the appellant-State on 30th September, 1997.

6. The respondent-landowner dissatisfied with the award of land acquisition officer dated 4.10.1997 filed a reference application before the land acquisition officer on 15.10.1997 and a prayer was made that the matter be referred to the District and Sessions Judge, Dewas. The land acquisition officer, Dewas forwarded the reference application to civil Court in proforma VII under Section 18 of the Act on 5.5.1998.

7. It is alleged in the reference application that the land is situated on main Agra-Bombay Raod at village Lohar Pipliya just near to Dewas and is already diverted for a commercial use. Over the said land, the landowner is running a petrol pump. The sales room (cabin) and office is built in RCC super structure. Doors and windows are of steel frame. The flooring is made of mosaic tiles and lavatories are of glazed tiles. There is water and electrical connection, septic tank for drainage facility. The built up area of sales rooms measuring 366 Sq.ft. and total built up area is 1043 Sq. ft. The cost of construction rate is @ Rs.350/-and Rs.300/-per Sq. ft. respectively. The land owner also filed a copy of the sale deed (Ex.P/3) in respect of an area of 600 Sq.ft. of plot No.58 which is diverted for residential purpose, situated at village Lohar Pipliya. The value as mentioned in registered sale deed is Rs.100/-per Sq. ft. It is alleged that Ex.P/3, which is a copy of sale deed of plot No.58 is in