Summary
For approximately thirty acres of incompletely developed land acquired for rehabilitation, the Court averaged genuine nearby small-plot sales and deducted 40% for development. It fixed market value at Rs.60 per square foot with statutory benefits, rejecting reliance solely on isolated highest-priced small sales.
Issues
- How genuine small-plot exemplars should be adjusted when valuing a large undeveloped acquisition.
Provisions considered
- Section 23, Land Acquisition Act, 1894Market value was assessed using comparable sales, potentiality, location, scale and a fact-specific development deduction. (¶ 26–35)
Held
- When large-tract exemplars are unavailable, genuine small-plot sales may assist after appropriate adjustment. Development deductions depend on the actual land, extent of development, purpose and surrounding circumstances rather than a fixed percentage. (¶ 26–30)
- The municipal location, road frontage and nearby buildings supported potentiality, but the large area and incomplete development required adjustment. The Court adopted an average of Rs.99 per square foot, deducted 40% and rounded to Rs.60; isolated top-value small sales did not govern. (¶ 30–35)
Result
Appeals partly allowed; compensation fixed at Rs.60 per square foot with all statutory benefits. Recalculated sums to be paid after land verification within three months.