Land acquisition valuation turns on the most proximate genuine sale instance, with deductions for size and frontage advantages.

Market value in land acquisition must be assessed as on the date of the section 4 notification on the basis of reliable proved material, and the most proximate genuine sale instance may be preferred where other evidence lacks comparability or support. A small plot sold from the same survey number before the notification was treated as the best comparable, but its size and frontage advantage required suitable deduction. Because the acquisition was for a railway line, no development-charge deduction was made. On that basis, compensation was enhanced and market value fixed at Rs. 27 per sq. ft. with statutory benefits under sections 23(1A), 23(2) and 28 of the Land Acquisition Act, 1894.

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Issues: Whether the acquired land's market value was correctly assessed, and whether the claimant was entitled to enhanced compensation on the basis of a proximate genuine sale instance of part of the same survey number.

Analysis: The reference had to be decided as an original proceeding on the basis of material proved before the Court, with market value determined as on the date of publication of the section 4 notification. The sale instances and valuation evidence rejected by the Reference Court were found unreliable for want of proximity, supporting data, or comparable advantages. The sale deed of 13.09.1995 relating to a small plot carved out of the same survey number was treated as the most proximate and genuine instance, since it preceded the notification and concerned adjoining land. As the comparable plot was small and had the advantage of frontage on a 35-feet road, suitable deduction was required. In view of the acquisition being for a railway line, no deduction towards development charges was made.

Conclusion: The claimant was entitled to enhancement of compensation, and the market value was fixed at Rs. 27 per sq. ft. with statutory benefits under sections 23(1A), 23(2) and 28 of the Land Acquisition Act, 1894.

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