JUDGMENT Nirmal Yadav, J. - These appeals having arisen out of the same judgment and award dated 29.1.1999 passed by Additional District Judge, Hisar, and involving identical questions of fact and law, are being disposed of by this common judgment. 2. The State of Haryana issued notification under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as the Act) on 20.8.1992 seeking to acquire 227.44 acres of land in the revenue estate of Hisar for a public purpose, namely, development and utilization of the land for residential sectors by Haryana Urban Development Authority (hereinafter referred to as HUDA). In furtherance thereto, notification under Section 6 of the Act was issued and published on 17.8.1993. The Land Acquisition Collector, Urban Estates, Hisar, vide award dated 19.1.1995 awarded compensation at the rate of Rs. 1,50,000/- per acre (Rs. 30.99 per square yard) for chahi and Rs. 42,000/- per acre (Rs. 8.67 per square yard) for Gair Mumkin land. On references made by the land owners, the Additional District Judge enhanced the compensation and determined the market value of the acquired land as under :- (a) Chahi land = Rs. 6,50,000/- per acre (Rs. 134.30 per square yard) (b) Gair Mumkin land = Rs. 1,68,000/- per acre (Rs. 34.71 per square yard) 3. Aggrieved by the judgment and award passed by the Additional District Judge, both the State as well as claimants have filed the present appeals. The claimants have challenged the order of the Reference Court mainly on the ground that learned Additional District Judge has ignored the oral as well as documentary evidence including the report of the Local Commissioner and the site plan prepared by him. It is argued that learned Additional District Judge had inspected the site on 18.1.1999 and found that the land was included in the municipal limit as far back as in the year 1974. Since then, several residential colonies as well as industrial units have come up in the close vicinity of the acquired land. The acquired land, on three sides, is surrounded by residential colonies and on the fourth side it is bounded by Hisar-Raipur Government sanctioned Kacha path. All the civic amenities, viz., electricity, roads, telecom, sewerage and medical facilities, etc. are available around the land. The acquired land, on three sides, is surrounded by residential colonies and on the fourth side it is bounded by Hisar-Raipur Government sanctioned Kacha path. All the civic amenities, viz., electricity, roads, telecom, sewerage and medical facilities, etc. are available around the land. It was further found that there is increasing demand of residential plots in the town of Hisar, therefore, there was great pressure of building activities in the area. It is further pleaded that learned Additional District Judge has ignored the value fetched by the plots in the auction held in the year 1990 and 1992 by HUDA in the nearby Mela Ground, as is apparent from the documents Exhibit P-58 to P-64. It is further pleaded that the sale-deeds Exhibits P/2, PW3/A and PW3/B show that the land in the close vicinity was sold at the rate of Rs. 247.93, Rs. 215.63 and Rs. 206.61 per square yard, respectively, on 7.2.1991 and by adding enhancement at the rate of 12% per annum to the average market value of the land, the value of the acquired land on the date of notification under Section 4 of the Act, would come to Rs. 260/- per square yard. It is further pleaded that this Court in the case of Atam Parkash v. State of Haryana, reported as 2000(1) (sic) 295 has relied upon the sale instance, Exhibit P-2 and assessed the market value of the land at the rate of Rs. 235/- per square yard. In that case, the land was acquired by the State Government for development of industrial sectors 9 and 11 by HUDA. Accordingly, it is pleaded that even though the market value of the land is not less than Rs. 500/- per square yard. 4. On the other hand, learned Advocate General, Haryana pleaded that the enhancement made by the Additional District Judge is unreasonable, whereas, the award given by the Land Acquisition Collector is quite reasonable as per the criteria laid down for assessment of market value of the land. It is further pleaded that the learned Additional District Judge has fallen into error while distinguishing the present case from the earlier references relating to similar land, titled as Lalit Pal etc. v. State, which were decided by Shri R.S. Virk, Additional District Judge on 2.1.1998. 5. I have heard learned counsel for the parties and perused the material on record. 6. v. State, which were decided by Shri R.S. Virk, Additional District Judge on 2.1.1998. 5. I have heard learned counsel for the parties and perused the material on record. 6. Learned counsel for the claimants argued that the reference Court has itself given the finding that the acquired land is surrounded by residential colonies on three sides and on the fourth side it is bounded by Hisar-Raipur Government Kacha Path. The claimants have also been able to prove the conclusive evidence that a part of the acquired land was included within the municipal limit in the year 1974 while for the other part of the land, the municipal limits were extended in the year 1988-89. This fact has been duly proved by PW1 Maman Singh, Assistant District Town Planner, Hisar, and PW8 Jagmal Singh, Clerk, Municipal Committee, Hisar, who produced on record site plants, Exhibit P1 and Exhibit P7, respectively. The copies of Resolution of Municipal Committee, Exhibit P8 dated 4.5.1983 and notification, Exhibit P-9 for extension of municipal limits in 1974 as well as notification for extending municipal limit in 1988-89, were also produced on record. PW9, official of the Municipal Committee, Hisar further proved that Baba Balak Nath Mandir is paying the house tax since 1980 while Sunder Nagar, Adarsh Nagar, Raipur Road, Government Colony started paying the house tax after 1989. PW24-Daulat Ram, Official of the House Tax Branch of Municipal Committee, Hisar proved Exhibit P.111, list of various blocks of the Municipal Committee, Hisar for house tax purposes. Learned counsel vehemently argued that from the above evidence, it is abundantly proved that a part of the acquired land was included in the municipal limit as far back as in 1974 while the remaining part in 1988-89 i.e. much prior to the date of notification under Section 4 of the Act. It is further pointed out that the resolution, Exhibit P8 passed by Municipal Committee for extending municipal area, clearly shows that there was pressure on the land in dispute, therefore, various colonies and industrial units came up on Hisar-Raipur road. Accordingly, the Municipal Committee passed the resolution to extend the municipal limit. The land in dispute is situated at Hisar-Raipur Road, which is near to Hisar-Delhi bye-pass. Several thickly populated residential colonies viz. Shiv Nagar, Ram Nagar, Adarsh Nagar, Deep Nagar, Hanuman Nagar, Tarsem Nagar etc. are situated next to the acquired land. Accordingly, the Municipal Committee passed the resolution to extend the municipal limit. The land in dispute is situated at Hisar-Raipur Road, which is near to Hisar-Delhi bye-pass. Several thickly populated residential colonies viz. Shiv Nagar, Ram Nagar, Adarsh Nagar, Deep Nagar, Hanuman Nagar, Tarsem Nagar etc. are situated next to the acquired land. Industrial units like DCM Mills, Jitender Enterprises, Haryana Batteries, Haryana Synthetics are also situated near the acquired land. The civil amenities like schools, hospitals, commercial shops, STD booth are within a distance of 3 kms. from the acquired land. PW19-UDC, HSEB, Hisar deposed that electric connections were provided in the acquired land in the year 1970. Industrial and commercial connections were also released in and around the surrounding areas of the acquired land. Street lights have been provided in the colonies situated around the acquired land by the Municipal Committee. Sewerage was laid in the adjoining colonies in the year 1990. Similarly, telephone facility is available in and around the acquired land, which is proved by PW35-Shri Lal Chand, Junior Telecom Officer, Hisar. Even a ration depot was set up in Ward Nos. 13 and 14 under which the acquired land falls. The acquired land, as shown in Exhibit P-216, is approachable by pacca roads from Tarsem Nagar, Shiv Nagar and Government Kacha Path leading from Hisar to Raipur village. 7. Learned counsel for the claimants further urged that Hisar town is a fast developing town. It is located on the important National Highway No. 19 and is well linked with the other major towns of the State through the National Highways and railways. Two universities i.e. Haryana Agricultural University and Guru Jambheshwar University as also large number of industrial units of national importance like Jindal Strips Limited, Parkash Pipes and Tubes Limited, Haryana Concast Limited, H.P. Cotton and Textiles Limited, Indo Britain Agro Limited, Aarcee Ispat Limited and many others have accelerated the development of the town for the last more than 4 decades. Several educational institutions including the Universities, as mentioned above, have come up in the city. In order to control and regulate the urban development in and around the municipal limits of Hisar town, the land extending upto 8 kms. has been declared as controlled area. Several educational institutions including the Universities, as mentioned above, have come up in the city. In order to control and regulate the urban development in and around the municipal limits of Hisar town, the land extending upto 8 kms. has been declared as controlled area. On account of its location and congenial environment, the town has attracted a large number of traders and entrepreneurs from all over India and other places which has resulted into a great demand for setting up of residential colonies. The Hisar Improvement Trust has also carved out a number of residential and commercial schemes. The HUDA, Hisar is also developing residential sectors, namely, Sectors 9 and 13 to 17. Learned counsel further argued that except the area where the acquired land is situated there is no other vacant area on the outskirt of the Hisar City, which can be utilized for development of residential area or commercial buildings. Learned counsel pointed out that on the east-sourthern side, there are private residential colonies i.e. Adarsh Nagar, Vidyut Nagar, Industrial Sector, Shiv Nagar, Tarsem Nagar, etc. and as such, on three sides, it is surrounded by above-mentioned residential colonies, therefore, the land in question has great potential. The fact that the acquired land is having high potential for being used as residential/commercial area, also finds support from the findings recorded by the Additional District Judge in paragraphs 56 to 60 of the impugned judgment/award. The development of area around and adjacent to the acquired land having civil amenities and other facilities, certainly makes a great impact on the potentiality and market value of the acquired land on the date of notification under Section 4 of the Act. All these facts have been duly proved by the claimants by producing site plan, Exhibit P-38. 8. It is further argued on behalf of the claimants that in order to prove the market value of the acquired land, learned Additional District Judge has admittedly, taken into consideration the trend of rising prices of the land as well as the potentiality of the land for residential and commercial purposes. Since the acquired land is surrounded by residential colonies it has certainly lost its potentiality of being used as agricultural land. Since the acquired land is surrounded by residential colonies it has certainly lost its potentiality of being used as agricultural land. Learned counsel, therefore, argued that learned Additional District Judge erred in not relying on sale-deeds, Exhibit P/2, PW3/A and PW3/B. It is further argued that the above sale instances are the most relevant sale-deeds for determining the market value for the acquired land. The details of the aforesaid 3 sales are as under :- Document Exhibit Area Consideration Khasra No. Rate per sq. yard Proved by Sale-deed dated 7.2.1991 P-2 8 Kanals 4840 sq. yards Rs. 12,00,000/- 185//1 Rs. 247.93 PW2 Ajit Singh Vendee/Vendor supported by Income Tax Certificate Exhibit 206 ^ ^ ^ (8-0) ^ Sale Deed No. 8476 dated 13.2.1991 PW3/A 4 Kanals 5 Marlas 2550 sq. yard Rs. 5,50,000/- 164//10 Rs. 215.68 PW4 Inder Kumar (Purchaser vendee) ^ ^ ^ Min North Sale Deed No. 8449, dated 13.2.1991 PW3/B 4 Kanals 2420 sq. yards Rs. 5,00,000/- 135//17/1 Rs. 206.61 PW-5 Mangha Ram (Purchaser vendee) 9. It is further argued that the Reference Court has also committed a grave error in not relying on the instances produced by the claimants i.e. Exhibit P-60 to P-64, the auction record, which goes to prove that the plots situated in the Mela ground Sector, carved out by HUDA, have been sold at the rates of Rs. 592/- to Rs. 620/- per square yard in the year 1990 and at the rates of Rs. 846/- to Rs. 953/- per square yard in the year 1992. It is submitted that testimony of PW33-Shri S.K. Singla, Architect, Haryana State Electricity Board and President of Vivek Co-operative House Building Society has been erroneously ignored. According to their deposition, the above-mentioned Co- operative Society, situated in the close vicinity, is a registered Society and it is formed by the Class-I officers of the Haryana State Electricity Board and other Government officers. In the said Society a plot of 300 sq. yards is allotted to the members @ Rs. 35,720/- on the basis of no profit no loss. The Society had deposited development charges @ Rs. 25/- per square yard with the Municipal Committee, Hisar, in the year 1990. 10. In the said Society a plot of 300 sq. yards is allotted to the members @ Rs. 35,720/- on the basis of no profit no loss. The Society had deposited development charges @ Rs. 25/- per square yard with the Municipal Committee, Hisar, in the year 1990. 10. It is further argued that in relation to another acquisition of land in the year 1992 for development of Sectors 9 and 11, several cross-appeals were filed by the State as well as by the claimants wherein, the judgment/award of the Additional District Judge has been upheld and compensation has been awarded at the rate of Rs. 235/- per square yard. In the aforesaid references, two sale instances viz. Exhibits P/6 and P/25 were considered to be comparable instances in relation to point of time, size of plot, location and potentiality of the acquired land. It is pointed out that the sale instance, Exhibit P-6 relied in that case, has been produced as Exhibit P-2 in the present case. Learned counsel further pointed out that if average sale price of aforesaid 3 sale-deeds is taken and 12% per annum increase for intervening period is added, the amount would come to Rs. 250.20. Even after applying a cut of 20% on the amount so achieved, the market value of the acquired land would come to Rs. 200.16 per square yard. It is argued that apart from above sale-deeds, it is also to be seen that in Mela Kothi land, five plots measuring 9.84 x 19.68 meters each were sold on 25.9.1992 by public auction. The total area sold was 193.65 square yard and the per square yard Rs. 852/-, Rs. 752/- and Rs. 728/- respectively, as is evident from Exhibits P-60 to P-64. If on the average price of these five transactions, a maximum cut of 66%, as settled in P. Rama Redy v. Union of India, 1995 LACC 184 is applied, the market value of the acquired land would come to Rs. 273.75 per square yard. In any case, the sale instances, Exhibits P/2, PW3/A and PW3/B would be the most relevant pieces of evidence for computing a just and reasonable compensation in the present case, as the land transacted vide these 3 sale-deeds is closest to the acquired land. 273.75 per square yard. In any case, the sale instances, Exhibits P/2, PW3/A and PW3/B would be the most relevant pieces of evidence for computing a just and reasonable compensation in the present case, as the land transacted vide these 3 sale-deeds is closest to the acquired land. The sale instance, Exhibit P-2 has been accepted by the learned Single Judge of this Court in Atam Parkashs case (supra), where the land was acquired for utilization and development of Sectors 9 and 11 in the year 1992 itself. The above judgment has been further upheld by the Division Bench of this Court in LPA No. 397 of 2000 decided on 30.1.2001. Therefore, the market value of the acquired land should, at least, be awarded at the rate of Rs. 235/- per square yard. 11. On the other hand, learned Advocate General, Haryana, argued that the enhancement made by the learned Additional District Judge is exorbitant. It is argued that the Reference Court has not taken into consideration the judgment and award, Exhibit R1, passed by Shri R.S. Virk, Additional District Judge, Hisar vide which he disposed of similar claim references pertaining to the same award of the Land Acquisition Collector. In Exhibit R/1, the learned Additional District Judge, placed reliance on the sale instances produced by the State i.e. Exhibits R/2 to R/4 relating to the land situated in the close vicinity of the acquired land. Therefore, the compensation awarded by the Land Acquisition Collector is quite reasonable and based on correct market value of the acquired land. 12. Learned Advocate General further argued that with regard to sale instances Exhibits P-60 to P-64, the claimants have not produced the terms & conditions applicable to auctions nor the final sale-deeds of these plots have been brought on record. When the preferential direct evidences in the form of comparable relevant instances are available, the Court should not prefer to take recourse to consider the auction instances. 13. On careful consideration of rival submissions, it is evident on record that the acquired land, which is situated within the municipal limits of Revenue Estate, Hisar, has attained a high potential value on account of development activities being carried out in the Hisar town for the last two decades. 13. On careful consideration of rival submissions, it is evident on record that the acquired land, which is situated within the municipal limits of Revenue Estate, Hisar, has attained a high potential value on account of development activities being carried out in the Hisar town for the last two decades. The land in question has lost its potential as agricultural land and has acquired the potentiality of it being used for residential, commercial and industrial activities. At the time of acquisition, from 3 sides, the acquired land was surrounded by residential colonies. The claimants have mainly, relied on sale instances Exhibits P/2, PW3/A and PW3/B as well as on public auction record, Exhibits P-60 to P-64. The auction instances cannot be said to be preferential pieces of evidence in view of their peculiar terms & conditions. Thus, it would not be appropriate to consider the auction instances, for determination of market value of the acquired land especially when the direct evidence in the shape of comparable sale instances relating to close vicinity and having direct bearing on the market value of the acquired land, is available. The land relating to sale instances Exhibits P/2, PW3/A and PW3/B is located in the close vicinity of the acquired land. The land transacted vide Exhibits P/2 and PW3/B falls in Khasra No. 185 whereas, the land pertaining to Exhibit PW3/A in Khasra No. 164. The land relating to these three sale instances is very close to the acquired land, as is evident from site plan, Exhibit P-38 and thus, these sale instances can be safely held to be the most comparable instances in relation to point of time, area, location and potentiality of land for determining the market value of the land subject-matter of the present appeals. Out of the above sale instances, Exhibit P-2 has already been relied on by this Court in Arun Parkashs case (supra) for assessing the market value of the land acquired for Sectors 9 and 11, which is situated at a far off place. 14. In view of the above discussion, I agree with the argument raised by learned counsel for the claimants and hold that Exhibits P/2, PW3/A and PW3/B are the most relevant pieces of evidence to determine the market value of the land acquired in the instant appeals. 14. In view of the above discussion, I agree with the argument raised by learned counsel for the claimants and hold that Exhibits P/2, PW3/A and PW3/B are the most relevant pieces of evidence to determine the market value of the land acquired in the instant appeals. However, taking into consideration that a learned Single Judge of this Court in Atam Parkashs case (supra) has already assessed the market value of the land acquired for Sectors 9 and 11, at Rs. 235/- per square yard, which has further been accepted and upheld by the Division Bench in LPA No. 397 of 2000, decided on 30.1.2001, it would be appropriate if the compensation at the same rate is allowed to the claimants in the present appeals. In these circumstances, the judgments and awards, Exhibit R/1 to R/4 relied on by learned Advocate General, Haryana, cannot have any applicability to determine the just and fair compensation in these appeals. Since the entire acquired land has lost the potentiality of being used for agricultural purposes and the entire land would be utilized for development of residential sectors, it would be quite improper to categorize the land as Chahi and Gair Mumkin. Therefore, compensation at uniform rate shall be awarded for the entire acquired land. 15. For the reasons afore-stated, the appeals filed by the State of Haryana are dismissed and that of the claimants are partly allowed. The claimants shall be entitled to compensation for the acquired land at the rate of Rs. 235/- per square yard along with the statutory benefits as provided under Sections 23(1-A), 23(2) and 28 of the Act. Appeals dismissed.