Land acquisition compensation must reflect market value on notification date; valuation based on relevant factors was upheld.

Compensation for acquired land must be assessed by reference to market value on the date of the section 4 notification, considering the land's existing condition, advantages and potentialities. Small-sale instances of adjoining plots are not a safe guide for valuing a large tract. As the High Court had taken the relevant factors into account and adopted a reasonable valuation basis, its determination of compensation and market value was upheld and the challenge to quantum failed.

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Issues: Whether the High Court's determination of compensation and market value for acquired land required interference.

Analysis: The compensation had to be assessed with reference to the market value on the date of the notification under section 4, taking into account the land's existing condition, advantages and potentialities. The sale price of small adjoining plots was not a safe guide for valuing a large tract of land. Since the High Court had considered the relevant factors and adopted a reasonable basis for valuation, no infirmity was shown in its assessment.

Conclusion: The determination of compensation was upheld and the challenge to the quantum failed.

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