1997 INSC 0328
                 Special Land Acquisition Officer, Karnataka Housing Board and Others

                                                           Vs

                                             P.M. Mallappa and Others

                                     Civil Appeals Nos. 2228-2234 Of 1997

                                       (K. Ramaswamy, G. T. Nanavati JJ)

                                                      14.03.1997

                                                        ORDER

1. Notice on other respondents has been served. They are not appearing either in person or through
counsel. Delay condoned. S.R. Bhatt appears for one respondent in one appeal.

2. Leave granted.

3. These appeals, by special leave, arise from the judgment of the Division Bench of the Karnataka
High Court, dated 22-12-1995 made in MFAs. Nos. 2688 of 1988 and batch.

4. Notification under Section 4(1) of the Land Acquisition Act (for short "the Act") acquiring a
large extent of land was published on 25-3-1971. The Land Acquisition Officer in his award granted
compensation at the rate of Rs. 8000 per acre for the dry lands with which we are now concerned.
We are not concerned with the other lands because there is no appeal in that behalf. On reference
under Section 18 of the Act, the civil court enhanced the compensation to Rs. 15,000 per acre. The
High Court remitted the matter to the reference court for reconsideration. Thereafter, the reference
court enhanced the compensation to Rs. 38,000. On appeal, the High Court by the impugned
judgment has enhanced the compensation to Rs. 12 per sq. yd. which amounts to Rs. 58,000 per
acre. It is seen that since the respondents have not filed any appeal under Section 26 of the Act
against the award granting enhanced compensation of Rs. 38,000 per acre, we do not propose to go
into the enhancement granted by the reference court.

5. The only question is whether the High Court would be justified in enhancing the compensation to
Rs. 12 per sq. yd., in other words, Rs. 58,000 per acre. Admittedly, the land is dry land and the Land
Acquisition Officer had pointed out in his award that the converted lands for which he had awarded
compensation at the rate of Rs. 9000 and Rs. 10,000 per acre, bear different connotation from the
actual dry land existing as on that date. The potential value shall be determined for the land existing
as on the date of the notification and not after subsequent developments have taken place. The value
of the developed land bears no relevance to further enhancement of the value. Under these
circumstances, the High Court was wholly incorrect in enhancing the compensation to Rs. 12 per sq.
yd., i.e., Rs. 58,000 per acre.

6. The appeals are accordingly allowed and the judgment and order of the High Court stand set
aside and that of the reference court stands confirmed. No costs.