JUDGMENT P. C. Balakrishna Menon, C. J.—These appeals arise out of land acquisition references in respect of the acquisition of 102-11 bighas of land situated in three villages, namely, Patti Rihana I and II and Kasumpti Junga, of Tehsil and District Simla. The acquisition was to develop the land as house sites in accordance with the interim development plan of the Simla Development Authority constituted under section 40 of the Himachal Pradesh Town and Country Planning Act, 1977. The land acquired is partly in Station Ward Chhota Simla and the remaining extent is contiguous land beyond the municipal limits of the city of Simla. 2. The notification under section 4 of the Land Acquisition Act was published in January 1980. 3. The Collector awarded compensation at the rate of Rs. 40,000 per bigha. On reference by the respective claimants the court below has enhanced the compensation to rupees one lakh per bigha. It is against this that the Simla Development Authority (hereinafter referred to as the S. D. A.) has come up in appeal. Some of the claimants have filed memorandum of cross-objections for further enhancement of compensation. . After the claimants in the respective references had adduced part of their evidence the cases were consolidated on 13-3-1985 and common evidence was adduced in reference No. 21-S/4 of 1984 against which the S. D. A. has filed R. F. A. No. 6 of 1988. For the reason that part of the evidence had been adduced by different claimants before the cases were consolidated, there is duplication of evidence in these references. There is also common evidence adduced after the consolidation. 4. The S. D. A. after the cases were consolidated filed petitions on 7-11-1985 before the reference court for its impleadment as a party to the references. The court below by order dated 23-11-1985 dismissed these applications however allowing the S. D. A. to participate in the trial and lead evidence on the question of compensation. This order was challenged in revision by the S. D. A, before this court in O. R. No. 210 of 1985 and connected cases. This court on 24-4-1986 by consent of parties allowed the S. D. A. to be impleaded as party to the references allowing it to file statement in reply and also to adduce evidence. This order was challenged in revision by the S. D. A, before this court in O. R. No. 210 of 1985 and connected cases. This court on 24-4-1986 by consent of parties allowed the S. D. A. to be impleaded as party to the references allowing it to file statement in reply and also to adduce evidence. The order of this court in revision does not, however, permit the S. D. A. to recall the witnesses already examined for the purpose of their cross-examination. The S. D. A. thereafter filed its statement in reply on 17-5-1986 and on the basis of that reply the following additional issues were framed : — "1. Whether the petitioners are estopped to file the present reference on account of their act and conduct ? OP. S. D. A. 2. Whether the reference petitions are time barred ? OP. S. D, A. 3. Whether the reference petitions are not maintainable under section 18 and 13 of the Land Reference Act as alleged? OP. S. D. A." 5. I may even at the outset state that these additional issues were not pressed by the S. D. A. before the lower court and it is so recorded in the judgment under appeal. The S. D. A. participated in the trial after its impleadment and examined three witnesses on 15-7-1986 and two witnesses on 11-8-1986 on its behalf. The evidence in this case was closed on 13-5-1987. In the meanwhile, the S. D. A. on 1-7-1986 applied to the lower court to recall the witnesses already examined for the purpose of their cross-examination. That application was rejected on the ground that the judgment of this court in revision referred to above did not permit the S. D. A. to recall witnesses already examined for the purpose of their cross-examination. A revision against this order (C. R. No. 100 of 1986) filed by the S. D, A. before this court was rejected on the ground that the order was purely interlocutory and does not call for interference at that stage. 6. The learned Counsel for the appellant, Shri K. D. Sood, has strongly urged that the judgment under appeal should be set aside and the cases remanded to the lower court for fresh disposal for the reason that the appellant subsequently impleaded had no opportunity to cross-examine witnesses already examined on behalf of the respective claimants. 6. The learned Counsel for the appellant, Shri K. D. Sood, has strongly urged that the judgment under appeal should be set aside and the cases remanded to the lower court for fresh disposal for the reason that the appellant subsequently impleaded had no opportunity to cross-examine witnesses already examined on behalf of the respective claimants. Learned Counsel submits that the decision arrived at by the court below is violative of the principles of natural justice and should, therefore, be set aside on this preliminary ground. 7. Section 58 of the Himachal Pradesh Town and Country Planning Act, 1977 provides that the Town and Country Development Authority, may proceed acquire by agreement the land required for the implementation of its scheme and, on its failure so to acquire by agreement request the State Government to acquire the land under the provisions of the Land Acquisition Act, i894. The land on such acquisition vests in the Town and Country Development Authority. It is by virtue of section 58 of the Act that the S. D. A. had made a requisition to the State Government for the acquisition of the land involved in the present case. The acquisition of the land is for and on behalf of the development authority and the Land Acquisition Collector who is made a party to the reference under section 18 of the Land Acquisition Act represents the interest of 4he requisitioning authority. Section 50 (2) of the Land Acquisition Act, however, permits the requisitioning authority to appear and adduce evidence before the Collector at the stage of the award enquiry and before the Court at the reference stage for the purpose of determining the amount of compensation. Since the interest of the S. D. A. was fully represented by the Collector before it was impleaded in these references, I do not see any force in the plea that the proceedings are vitiated for the reason that the S. D. A. had no opportunity to cross-examine the witnesses already examined on behalf of the claimants before its impleadment. A Division Bench of the Kerala High Court in Kerala State Housing Board v Soumini, 1989 (2) KLT 203, has taken the view that the Land Acquisition Officer impleaded in the reference represents the interest of the Housing Board on whose behalf the land had been acquired. 8. A Division Bench of the Kerala High Court in Kerala State Housing Board v Soumini, 1989 (2) KLT 203, has taken the view that the Land Acquisition Officer impleaded in the reference represents the interest of the Housing Board on whose behalf the land had been acquired. 8. The land acquired in the present case as already adverted to is partly within and partly outside the limits of the Municipal Corporation of Simla. The entire land in the Simla District is mountainous terrain and the land in question is also situated in such terrain. Even though the land involved in these proceedings cannot be said to be a developed land, there cannot be any doubt that the land is fit for development as building site and the acquisition itself was for the implementation of a scheme for development of the land as a building site. In the interim development plan published by the Town and Country Planning Organization on 31-3-1979 it is stated at page 44: "Towards eastern Simla, there are also limited scopes for expansion of the city because of the rugged topography and criss-crossed and forested mountains which provide difficult accessibility. The packet known as Kasumpti spur, however, provides suitable scope for future expansion of the city". 9. The acquisition in the present case is of the area referred to as "Kasumpti spur". It is further stated at page 46 of the plan in para 7.1.2. : "7.1.2. City Structure : Conceptually the development plan broadly suggest three tier functions i. e. the capital commercial and the tourism, yet the city structure envisaged in the development plan suggest cellular growth on satellite conception. Therefore, besides deciding the city structure with a view to the capital complex function, commercial and the tourism functions, it has been conceived to sub-divide the whole Simla City of tomorrow in seven planning zones including the city centre, designated as Central Business Zone. The seven zones have been conceived with a view to keep a proper spread of public and semi-public facilities, besides commercial and other activities. These zones are named as below : — (1) ..............•......... (2) The Kasumpti Zone, which would act as a Capital Complex or the New Simla. (3) to (7).....................;;; 10. The seven zones have been conceived with a view to keep a proper spread of public and semi-public facilities, besides commercial and other activities. These zones are named as below : — (1) ..............•......... (2) The Kasumpti Zone, which would act as a Capital Complex or the New Simla. (3) to (7).....................;;; 10. From these statements in the Interim Development Plan it is clear that the land under acquisition has got a very high potential for development as part of the Simla City Structure. The evidence in the case show that the land is located close to the Himachal Pradesh Secretariat and the Brock Hurst Colony which is said to be the residential quarters of the Government Officers. Part of the land acquired is within the limits of the Municipal Corporation of Simla and the remaining part is a contiguous area That the entire area under acquisition is almost similar in nature can be inferred even from the award of the Land Acquisition Collector as per which the land value had been fixed at a uniform rate of Rs. 40,000 per bigha. 11. The principal question for determination in these appeals is whether the enhancement of the land value to rupees one lac per bigha by the reference court is justified on the evidence in the case? 12. Exs. PW 3/A, 3/B and 7/A are the tatimas or the revenue maps of the estate prepared by PW-3, the Patwari of Simla circle. In his deposition as PW 3 in the reference relating to R. F. A. No. 6/88 he has stated that the land involved in that reference is within the municipal area of Simla and contiguous to the land of Mr. Bakhia. Mr. Bakhia was examined as PW 4 in the reference relating to R. F. A. 6/88 and as PW 2 in the reference relating to R. F. A. No. 11/88. He is the power of attorney holder of Rohit Madhan and Smt. Manju Madh an whose land was also acquired under a similar notification for the same purpose. The award of the Collector in that acquisition is as marked PW I/A in R. F. A. No. 11/88 and as Ex. PZ in R. F. A. No. 6/88. This award is marked also in the other references. For the purpose of this judgment this award will be referred to as Ex. The award of the Collector in that acquisition is as marked PW I/A in R. F. A. No. 11/88 and as Ex. PZ in R. F. A. No. 6/88. This award is marked also in the other references. For the purpose of this judgment this award will be referred to as Ex. PW I/A. The acquisition related tol8biswasof land in the same area. A plan prepared by the S. D. A. and submitted for my perusal by the learned Counsel for the appellant shows that the eastern extremity of the land involved in the acquisition under Ex PW I/A touches the Simla Kasumpti Road and that land has direct access to the main road. It is situated in Chhota Simla, that is within the municipal limits of Simla. As per Ex. PW I/A award, the land Acquisition Collector had awarded compensation for this land at the rate of Rs. 1, 25,636 per bigha. Mr. Bakhia, the power of attorney holder of the owners of the land examined as PW-2 in R. F. A. No. 11/88 has, however, deposed that the acquisition of this land was later withdrawn apparently for the reason that there were more than 40 deodar trees in the 18 biswas of land and the said land cannot be utilized for building purposes. PWs 1, 7, 8, and 10 to 14 are some of the claimants examined in these references. They have all deposed that the land involved in this acquisition is close to the land o f Bakhia and it is close to the H. P. Secretariat and the Brock Hurst area in the city of Simla. Ex. RW 10/A plan, prepared by the Kanoongo examined as PW 10, also shows that part of the acquired land is within the municipal limits and the remaining part is just outside the boundary. The plan submitted for my perusal by the S. D. A. shows that even though these lands have no direct access to the main road, the different plots are accessible through village roads connecting the main road. Evidence also shows that in some of the plots there were houses where the respective owners had been residing. PW 1 K. C. Thakur claimant in R. F. A. No. 6/88 has deposed that his house near the acquired plot is electrified and has all civic facilities such as telephone and water connection. Evidence also shows that in some of the plots there were houses where the respective owners had been residing. PW 1 K. C. Thakur claimant in R. F. A. No. 6/88 has deposed that his house near the acquired plot is electrified and has all civic facilities such as telephone and water connection. There are also documents to show the price of the land in the locality. Ex, PW 6/A in R. F. A. No. 6/88 is a sale-deed evidencing the sale of 198 sq. yards of land in Chhota Simla for a price at Rs. 200 per sq. yard. This document is proved by PW 6 Dr. Mohinder Nath. The price works out at Rs. 1, 80,000 per bigha. The evidence, however, shows that this land has access to the main road. Ex. PW 5/A, dated 9-12-1979 evidences the sale of two biswas of land in Chhota Simla at the price at Rs. 8,500 per biswa. PW 5 purchaser has proved this document. The price works out at Rs. 1, 70,000 per bigha. PW 5 has deposed that the acquired land is within the same locality. He has also deposed that the land under acquisition is nearer to the main road than the land purchased by him. Ex. PB dated 8-5-1979 is a sale-deed conveying three biswas of land in the locality for Rs. 25,000. The price works out at Rs. 1,66,660 per bigha, Exs PC, PD, and PE are documents of sale during the relevant period relating to four biswas of land each executed by one Rani Padamjit Singh to three different persons at a price Rs. 1,80,000, per bigha. The vendee under Ex. PC is Dr. Mohinder Nath. He is examined as PW 3 in R. F. A. No. 11/88 and PW 6 in R. F. A. No. 6/88. He has proved these documents Ex. PX is an award of the District Court relating to the acquisition of a plot of land in Kasumpti during the year 1974. The compensation awarded was at Rs. 60,000 per bigha. Ex. PX judgment, was affirmed by this Court in appeal and Ex. PY is the appellate judgment. As against these documents the S. D. A. relies on certain other documents which are referred to hereinbelow. Ex. RX-24 is a copy of mutation for the year 1979 proved by RW-J3. The compensation awarded was at Rs. 60,000 per bigha. Ex. PX judgment, was affirmed by this Court in appeal and Ex. PY is the appellate judgment. As against these documents the S. D. A. relies on certain other documents which are referred to hereinbelow. Ex. RX-24 is a copy of mutation for the year 1979 proved by RW-J3. This document shows that RW-13 had sold 4.5 bighas of land for Rs. 4,000. RW-13 admits that the land involved in this sale-deed is 2 kms. away from the acquired land and the document even though shown as a sale-deed evidences the renunciation of her rights in the property in favour of her uncle Jagat Ram. Ex. RW 5/A is the sale-deed relating to 5 biswas of land in Patti Rihana for a consideration of Rs. 2,500 that works out at Rs. 10,000 per bigha. RW 5 however, admits that the land involved in the document was not a building site but a khud or a dry-rivulet. Not much reliance therefore, can be placed on this document and is not of much value to determine the market value of the acquired land. Ex. RX-23 is a sale-deed relating to 5 biswas of land for Rs. 3.500 and Ex. RX-21 is another sale-deed evidencing the sale of a piece of land at the rate of Rs. 12,000 per bigha. Neither the vendor nor the purchaser is examined to prove the nature of the land involved in these transactions, its potential and the circumstances under which the transactions have taken place. Unless there is proof of the circumstances under which the transaction took place, the nature of the land and its potential, these documents are of no evidenciary value. (See : Mehta Ravindrarai Ajitrai {deceased by LRs) and others v. State of Gujarat, AIR 1989 SC 2051. 13. The documents produced on behalf of the claimants are sufficient to prove that the market value of small plots of developed land in the locality was between Rs. 1,70,000 and Rs. 1,80,000 per bigha. The price fetched for the small plots of land cannot, however, be accepted as such in fixing the market value of a much larger plot of land acquired as in the present case. 1,70,000 and Rs. 1,80,000 per bigha. The price fetched for the small plots of land cannot, however, be accepted as such in fixing the market value of a much larger plot of land acquired as in the present case. The sale price of small plots of land can only be considered as the retail price within the meaning of the decision in Administrator Gent, of West Bengal v. Collector, Varanasi AIR 1988 SC 943 with reference to which the whole-sale price of the larger plot is to be worked out In the said decision the Supreme Court observed at page 947; "It is trite proposition that prices fetched for small plots cannot form safe basis for valuation of large tracts of land as the two are not comparable properties. (See Collector of Lakhimpur v. B. C. Dutta, AIR 1971 SC 2015 ; Mirza Nausherwan Khan v. Collector, Land Acquisition, Hyderabad, (1975) 2 SCR 184 : (AIR 1974 SC 2247) ; Padma Uppal v. State of Punjab, (1977) 1 SCR 329 : (AIR 1977 SC 580) ; Smt, Kaushalya Devi Bogra v. Land Acquisition Officer, Aurangabad, (1984) 2 SCR 900 : (AIR 1984 SC 892). The principle that evidence of market value of sales of small, developed plots is not a safe guide in valuing large extents of land has to be understood in its proper perspective. The principle requires that prices fetched for small developed plots cannot directly be adopted in valuing large extents. However, if it is shown that the large extent to be valued does admit of and is ripe for use for building purposes; that building lots that could be laid out on the land would be good selling propositions and that valuation on the basis of the method of a hypothetical layout could with justification be adopted, then in valuing such small, laid out sites the valuation indicated by sale of comparable small sites in the area at or about the time of the notification would be relevant. In such a case, necessary deductions for the extent of land required for the formation of roads and other civic amenities; expenses of development of the sites by laying out roads, drains, sewers, water and electricity lines, and the interest on the outlays for the period of deferment of the realisation of the prices the profits on the venture etc, are to be made. In Brig Sahib Singh Kalha v. Amritsar Improvement Trust, [See (1982) 1 SCC 419 : (AIR 1982 SC 940], this Court indicated that deductions for land required for roads and other developmental expenses can, together come up to as much as 53%. But the prices fetched for small plots cannot directly be applied in the case of large areas, for the reason that the former reflects the retail price of land and the latter the wholesale’ price." 14. In fixing the wholesale price there are many factors which are to be taken into consideration, such as the vacant space to be left out for road, sewers etc. and the expenses for laying out roads, drains, sewers, water and electric lines and other civic amenities, besides the period of time that the money to be spent for such expenses would remain tied up without yielding any interest. The development plan prepared by the S. D. A. itself provides for such civic amenities which would involve expenditure of large sums of money. The aforesaid decision of the Supreme Court envisages expenses upto 5?% for such developmental purposes. A later decision of the Supreme Court in Chimanlal Hargovinddas v. Special Land Acquisition Officer, Poona and another, AIR 1988 SC 1652, envisages such expenses for the purpose of development at 20% to 50%. Considering the nature of the terrain, its proximity to the developed area within the municipal limits of Simla and its potential referred to in the development plan itself, adverted to earlier, I am of the view that a deduction at 40% would be reasonable. 15. Considering the documentary evidence adverted to above the retail price of 4ev§loped leiad in the locality can be fixed at Rs, 1, 70,000 per bigha. The wholesale price would then work out at Rs. 1, 02,000 per bigha. I am, therefore, of the view that the market value of the acquired land determined at Rs. one lac per bigha by the court below is fair and reasonable and does not call for interference in these appeals. 16. Some of the claimants who have filed cross-objections rely on Ex. PW 1/A award relating to the acquisition of the land of Rohit Madan and Manju Madan. one lac per bigha by the court below is fair and reasonable and does not call for interference in these appeals. 16. Some of the claimants who have filed cross-objections rely on Ex. PW 1/A award relating to the acquisition of the land of Rohit Madan and Manju Madan. That acquisition itself was withdrawn, thereby implying that the price suggested by the Collector was not acceptable to the S. D. A. That apart the land involved in that acquisition has direct access to the main Simla Kasumpti Road. There were also valuable timber trees in that plot of land. For all these reasons the price fixed as per Ex. PW I/A award cannot be accepted as the standard for determining the market value of the land involved in these appeals. 17. The learned Counsel for the appellant Shri Kapil Dev Sood, points out that the Collector had determined the compensation in some of these cases for the fruit bearing trees applying what is known as the Harbans Singh formula. The said formula, it is brought to my notice, takes note of the future life of the fruit bearing tree and determines its value on the basis of its income. According to the learned Counsel when land value is separately awarded, the compensation in respect of fruit bearing tree(s) can only be its timber value. There cannot be any quarrel about this proposition. No such point is, however, urged before the lower Court. Not even a specific ground is taken with regard to this point in any of these appeals. I am, therefore, of the view that it is not open to the appellant to raise such a point for the first time at the stage of arguments in the appeals. 18. Now I shall deal with certain other points arising in some of the separate appeals. In R.F.A No. 11/83 against reference Mo. 16-S/4 of 1984, the total extent of land acquired is 7 bighas 1 biswa and 10 biswansis of land including 8 biswis of land held on tenancy under the State of Himachal Pradesh. It is admitted by the claimant himself that he is not an occupancy tenant within the meaning of the Himachal Pradesh Tenancy and Land Reforms Act, 1972 aid has got the status of only a non-occupancy tenant. It is admitted by the claimant himself that he is not an occupancy tenant within the meaning of the Himachal Pradesh Tenancy and Land Reforms Act, 1972 aid has got the status of only a non-occupancy tenant. The court below has held that by virtue of subsection 3 of section 104 of the Act the rights of the Government as landlord have vested in the tenant and the claimant has therefore, become the absolute owner of the aforesaid 8 biswas of land also- He is, accordingly held entitled to the full compensation due for the said land. The Himachal Pradesh Tenancy and Land Reforms (Amendment) Act, 1987 was passed in 1987 with retrospective effect from the date of the parent Act and by virtue of a proviso added to section 104, the land belonging to the Government are exempted from the operation of section 104 of the Act. Since the amending Act has retrospective effect from the date of the parent Act itself it should now be held that the landlords rights belonging to the Government do not vest in the claimant. The Land Acquisition Officer had apportioned the compensation between the Government and the tenant at the rate of 50: 50 and the claimant is entitled to compensation at 50% of the land value in respect of the 8 biswas of land. 19. The lower court has committed a mistake in recording the total extent of land of the claimant under acquisition as 6 bighas 15 biswas including the 8 biswas of land held under tenancy. Thus the court below has omitted to award compensation for the 6-1/2 biswas of land held as owner by the claimant. The claimant is entitled to compensation for the 6-1/2 biswas of land which has been omitted to be taken into account by the court below. 20. Learned Counsel for the claimants points out that the benefit of the section 23 (1-A) of the Land Acquisition Act should have been allowed on the entire compensation and not merely on the amount of the enhanced compensation. The award of the Collector in this case was passed on 24-2-1984. As per section 30 (i) of the Land Acquisition (Amendment) Act, 1984, the claimants are entitled to the benefits of section 23 (1-A) in respect of proceedings pending for acquisition of land on 30th day of April 1982. The award of the Collector in this case was passed on 24-2-1984. As per section 30 (i) of the Land Acquisition (Amendment) Act, 1984, the claimants are entitled to the benefits of section 23 (1-A) in respect of proceedings pending for acquisition of land on 30th day of April 1982. On the said date the proceedings for determination of compensation were pending before the Collector arid the claimants are entitled to the benefits of section 23 (1-A) on the entire compensation due on account of the acquisition of the land. By virtue of sub-section (2) of section 30 of the Land Acquisition (Amendment) Act (64 of 1984) the claimants are entitled also to the benefits of section 28 of the Act. The award of the court below will be modified accordingly. 21. In R.F.A. No. 6/88 the award of the Collector shows that the total extent of the ownership land acquired is 35 bighas 13 biswas. The award of the court below has taken note of only 33.4 bighas and has omitted to award compensation for an extent of 2.9 bighas. The claimants are entitled to compensation for this extent of 2.9 bighas also. The award of the Collector also shows that compensation at 50% was awarded to the claimant in respect of 1.9 bighas in khasra No. 12 held on non-occupancy tenancy under the Government, The reference court has omitted to take note of this extent of land also. The claimants are entitled to 50% of the market value for the 1 9 bighas of land held as non-occupancy tenants under the Government. The award in this case passed on reference will be modified accordingly. 22. In R.F.A No. 3/88, the total extent of land acquired is 10.4 bighas out of which 16 biswas is held by the claimant as non-occupancy tenant under the Government. The claimants are entitled only to 50% of the compensation for the aforesaid extent of 16 biswas. The award in this case will be modified accordingly. 23. The appeals and the Memorandum of Cross-objections are disposed of as above. The parties will suffer their respective costs. Order accordingly. -