Land Acquisition Act, 1894:

ss.4, 23(1-A) and 28 - Acquisition of large tracts of land - For the purpose of setting up an industry - Market value - Ascertainment of - By placing reliance on exemplars of small pieces of land - Deduction of 33% from the market value on the ground that exemplars forming basis for ascertainment of market value were of small pieces of land - Propriety of - Held: Market value rightly assessed - Market value of small pieces of land can be used as a safe guide to determine the market value of large tracts of land when exemplars of large pieces of lands are not available - In the instant case, acquisition being for the purpose of setting up an industry, the acquired land will contribute to production of goods yielding good profit - Hence deduction of 10% from the market value would meet the ends of justice.

Market value - Of land acquired - Ascertainment of - Guiding factors - Discussed.

Words and Phrases - 'Market value' - Meaning of in the context of land acquisition.

A Notification u/s 4 of Land Acquisition Act, was issued for acquisition of the land of the appellants. The land was situated as one compact unit in four villages. The Land Acquisition Collector gave an award on the basis of quality of land, by dividing the acquired land in seven categories. The market value assessed varied from Rs.6000/- to Rs.35000/- per acre. On reference u/s 18, compensation was awarded at a flat rate of Rs.43,000/- per acre by placing reliance on two instances of sale deeds (Ex R-6 and R-7). On appeal, High Court relying on the copies of sale deeds (Exbts P-7, 9 and 10) pertaining to land which was subject matter of acquisition, held that the market value of the land acquired was Rs.1,20,000/- per acre. It made a deduction of 33% on the ground that the exemplars filed by the appellants were of small pieces. Besides, appellants were also held entitled to statutory sums u/s 23(1-A), 23 (2) and 28 of the Act. State's appeal was dismissed. Hence the present appeals by the Landowners.