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Issues:
1. Determination of market value for land acquisition under the Land Acquisition Act 1894. 2. Consideration of sale transactions in determining market value. 3. Deduction of land for development purposes in valuation. Analysis: 1. Market Value Determination: The case involved a dispute over the market value of land acquired for a housing scheme under the Land Acquisition Act 1894. The appellant contested the valuation set by the High Court, arguing that the reliance on a previous judgment for valuation was erroneous. The Supreme Court emphasized that the market value should reflect the price prevailing at the time of the notification under section 4(1) of the Act. The Court reiterated that the price a willing vendor could reasonably expect from a willing purchaser forms the basis for determining market value. It was held that the exclusion of genuine sale transactions of the acquired land and reliance on a different judgment for valuation was illegal. Ultimately, the Court determined the market value to be &8377; 6 per square yard, considering the sale transactions and prevailing circumstances. 2. Consideration of Sale Transactions: The appellant argued that the sale transactions of the acquired land should have been considered in determining the market value. The Court agreed, stating that genuine sale transactions within a reasonable time from the acquisition date provide the best evidence for valuation. The Court criticized the lower courts for disregarding the sale deeds presented by the respondents and relying on a different judgment for valuation. It was emphasized that the prevailing market value should be based on actual sale transactions of the specific land under acquisition, rather than unrelated judgments. The Court concluded that the market value should be &8377; 6 per square yard, considering the genuine sale transactions of the acquired land. 3. Deduction for Development Purposes: Another issue raised was the deduction of land for development purposes in the valuation. The appellant contended that 1/3 of the land should be deducted for roads, parks, drainage, and other amenities. The High Court's reasoning for valuing the land at &8377; 12 and then deducting to &8377; 10 was challenged. The Supreme Court referred to previous judgments and established that a deduction of 1/3 for development purposes is reasonable. The Court held that the High Court erred in its valuation methodology and determined the market value after deduction to be &8377; 4 per square yard. The respondents were awarded 15% solatium on the market value and 4% interest from the date of dispossession. In conclusion, the Supreme Court allowed the appeal, setting the market value at &8377; 6 per square yard after deducting 1/3 for development purposes. The judgment highlighted the importance of considering genuine sale transactions and following established principles for valuation under the Land Acquisition Act 1894.
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