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Issues involved:
The issues involved in the judgment include the validity of the acquisition of land, determination of compensation under the Land Acquisition Act, 1894, and the legal rights of the respondent as a purchaser of the acquired land. Validity of Acquisition: The Supreme Court considered the acquisition of land for a pumping station to drain flood water, noting the possession taken and the absence of an award. The Court held that the acquisition did not lapse under Section 11A and the notification and declaration remained valid. The respondent's purchase after the notification did not confer any rights, and the land vested in the State free from encumbrances. Determination of Compensation: The Court discussed the entitlement to compensation under Section 23(1) of the Act, emphasizing that the price prevailing at the time of the notification under Section 4(1) is relevant. The market value was to be determined based on evidence of prevailing rates, not basic valuation for stamp duty. The Court rejected arguments about subsequent development and determined compensation at Rs. 25,000 with interest and solatium. Legal Rights of Respondent: The judgment clarified that the respondent, as a purchaser, could claim compensation akin to the original owner under the Act. The Court highlighted the need for evidence-based valuation and rejected reliance on basic valuation for stamp duty. The respondent was awarded compensation and interest, with directions for the appellant to deposit the amount within six months. Separate Judgment: The Supreme Court allowed the appeal and disposed of the writ petition without costs, affirming the determination of compensation and legal principles regarding land acquisition and compensation under the Act.
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