Fair market value under Chapter XX-C must reflect pending litigation and injunctions; ignoring them vitiates pre-emptive purchase.

An order of pre-emptive purchase under Chapter XX-C is unsustainable if the authority, while assessing fair market value, ignores a material factor affecting valuation. Pending litigation, a challenged title and an injunction restraining transfer or possession were relevant circumstances that could depress market value and could not be dismissed on the basis of a possible indemnity or assumed failure of the litigation. Because the authority overlooked that factor, the purchase order was vitiated in administrative law and was set aside; the High Court's quashing of the order was affirmed.

---

---

Issues: Whether the appropriate authority's pre-emptive purchase order under Chapter XX-C was vitiated for ignoring the fact that the property was subject to pending litigation and an injunction.

Analysis: The agreement to sell had been disclosed under the mandatory procedure in Chapter XX-C. In assessing fair market value, the appropriate authority relied on comparable instances and concluded that the apparent consideration was understated. However, the property was already embroiled in litigation, title had been challenged, and an injunction had been issued restraining transfer or parting with possession. That circumstance was a material and relevant factor bearing on market value and could not be brushed aside on the assumption that the transferor had offered indemnity or that the litigation would ultimately fail. Where a relevant factor affecting valuation is ignored, the resulting order is vitiated in administrative law.

Conclusion: The order of compulsory purchase was rightly set aside; the challenge to the High Court's decision fails.

Final Conclusion: Ignoring a material factor that directly affected valuation rendered the pre-emptive purchase order unsustainable, and the dismissal affirmed the High Court's quashing of that order.

Ratio Decidendi: An order based on valuation under Chapter XX-C is vitiated if the authority ignores a relevant and material factor affecting fair market value, including pending litigation and restraints on transfer.

---