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4. Persons ((recorded land holders) affected by acquisition were 46, out of which 39 filed their claim statements before the Land Acquisition Officer. They claimed compensation at the rate varying between Rs. 1.50 to Rs. 5/- per square foot. They, however, adduced no evidence before the Land Acquisition Officer nor did they file any record of income they derived from their respective lands.

5. The Land Acquisition Officer determined the award on the basis of multiple of 1069 per rupee rental. This is how the worked out the multiple. He had before him the index of sales which took place within 3 years prior to the acquisition. They were in all 325. He left out of consideration 208 sales which did not appear to him bona fide and for fair price. They were transacted by industrialists and businessmen at fancy prices. The transactions indicated according to him systematic disposal of small plots at house building site rates though the land was in fact, used for agriculture and was not developed and diverted for the use as a building site. The Land Acquisition Officer picked out 117 representative sales, determined the rental on basis of up-to-date classification of soil, divided the consideration of those 47 sales by the rental so worked out and found the multiple of 1069 per rupee rental. The total compensation worked out to Rs. 38307.85 Nps. for 20.35 1/2 acres. Allowing 15% solatium for compulsory acquisition which came to Rs. 5896.05 Nps., the award was made for Rs. 45203.90 Nps. Over and above this amount, the Land Acquisition Officer offered to pay 10% for the potential value. The land had certain existing advantages, and possibilities of being used as a build-ins site, which he took notice of. For trees and wells upon the land, the Land Acquisition Officer determined Rs. 1504.20 Nps. as the compensation.

6. The Additional District Judge who heard the references under Section 18 of the Land Acquisition Act was of the view that the multiple worked out by the Land Acquisition Officer was an arbitrary figure and that the Land Acquisition Officer was wrong in eliminating 208 recent sales which were mostly for building purposes. According to the learned Judge, the land acquired was suitable for construction of buildings; there was demand for house-sites; the acquired land fell within the municipal limits of Durg town; the Bhilai Steel Plant was at a distance of 8 miles from the Kasaridih abadi and its sector 9 almost a mile and half away, had its impact; the industrialists and businessmen were being attracted in the vicinity of these lands; some buildings had already come up: thus the land had a great potential value and, therefore, deserved to be valued as building site. In his assessment of the evidence, he felt that valuation by belts would determine just compensation payable. He divided the land into four rows; the first row abutting the road Durg-Uttai and the rest of the rows as one went deeper into the land. Unfortunately, the Judge did not give the depth of each row from the frontage. He fixed the rate at Re. 1/- per Square foot for the first row, provided the land to be valued was less than 10,000 Square feet. For the second row the rate was fixed at .75 Nps. for the third row at 60 Nps. and for the fourth row at 50 NPS. per Square foot. The same condition applied to all the rows that in case the land exceeded 10,000 Square feet, but was below one acre, the value would be reckoned at half the rate. For land above one acre, the rate was further reduced to 1/3rd the rate fixed for plot below 10,000 Square feet.

if he could get purchasers like Bablani and Sonkaran. Whereas Inderchand purchased the lands for Rs. 3200/- in 1956, he means to sell them for Rs. 30,000/- in 1960 and mind you he has incurred no expenses in development or lay out.

23. Now turning to Kaley's sales: they are in all nine (marked with asterisk). Kaleys have sold plots in their individual names or in the name of Mahakali Engineering Works or in the name of Land Development and Construction Company, Motiram (A.W.11) who is their manager, says that plots were sold at concessional rates of 25 Nps. square foot to the servants of the Company, and to strangers, they were sold at .50 Nips, and .62 Nps. per sq. ft. Since the rates, according to him had been on the increase after the sales of the plots, he expects to get .75 Nps. to Re. 1/-per square foot. Calculated ah this rate, Kaleys expect anything between Rupees 32,000/- to Rs. 40,000/- per acre. All the nine sales by Kaleys took place between June, 1958 to February, 1959.

51. In the result, we allow the State appeal and dismiss the one filed by Modis. The excess compensation determined by the Additional District Judge at Rs. 25311-35 Nps. is set aside and instead Rs. 7274.25 Nps. substituted (i.e. Rs. 11267.75 Nps. Rs. 3993.50 Nps. award given by the Land Acquisition Officer). Interest at 6% per annum on this amount till payment is also allowed. The State shall be entitled to costs proportionate to success.