Circle rates cannot alone fix land acquisition compensation without scientific proof of actual market value.

Circle rates fixed for stamp duty cannot be used as the sole basis for land acquisition compensation because they do not, by themselves, represent actual market value. Market value must reflect the nature and situation of the land and may be relied on only where the rates are shown to have been determined by a statutory committee through a scientific and methodical assessment of market value. In the absence of such material, reliance on circle rates is unsustainable, and the compensation determination cannot stand on that basis alone.

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Issues: Whether circle rates meant for stamp duty could be treated as the basis for determining market value and compensation in land acquisition matters.

Analysis: Circle rates are prepared for the limited purpose of stamp duty and do not, by themselves, represent the actual market value of property. Market value may vary with the nature and situation of land and cannot be fixed on the basis of circle rates unless they are shown to have been determined by a statutory committee on a scientific and methodical assessment of market value. In the absence of such material, the High Court's reliance on circle rates was unsustainable.

Conclusion: Circle rates could not form the basis for determining compensation, and the impugned judgment was rightly set aside with the matter remitted for fresh decision.

Ratio Decidendi: Circle rates intended for stamp duty cannot be used as the sole basis for fixing land acquisition compensation unless they are shown to be the product of a statutory, scientific and methodical assessment of market value.

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