The market value of land acquired under the Land Acquisition Act should be determined based on actual transactions of neighboring properties of a similar character, rather than on the intimation of the Land and Development Officer or a booklet issued by the Government of India.

( 1 ) :- These are two cross-appeals from the order of the Addl. District Judge dt. 23rd Dec. 1978.

( 2 ) PURSUANT to a notification dated Mar. 6, 1967 issued under S. 4 of the Land Acquisition Act (the Act) the Union of India, respondent, acquired building No. 20, Tilak Marg, New Delhi owned by the appellant. In due course the Land Acquisition Collector made the award. He awarded compensation at Rs. 100/-per square yard for the land. For the superstructure standing on the land he awarded Rs. 62,270/ -. For trees he gave Rs. 606/ -.

( 3 ) ON reference under S. 18 of the Act the learned Addl. District Judge enhanced the compensation. For the land he awarded to the owner Rs. 150/- per square yard instead of Rs. 100/- per square yard. For superstructure he awarded Rs. 99,270/ -. This meant an increase of Rs. 37,000/- over and above what the Collector had awarded to the land owner for the superstructure. The learned Judge held that out of the compensation so awarded half will go to Capt. Mahabir Prasad Memory Trust and half will go to the appellant, Inder Persad (now dead and represented by his widow Smt. Sneh Lata Prasad ). From the order of the Addl. District Judge these two appeals have been brought R. F. A. 119/79 is the owner s appeal. R. F. A. 507/79 is the appeal of the taker of the land, Union of India.

( 4 ) IN the owner s appeal only one claim has been made and it is about the value of the land. Mr. Hari Shankar, learned counsel for the land owner, says that the land ought to have been valued at Rs. 200/- per square yard. For this contention he has mainly relied on the sale deed dated Feb. 25, 1965 in respect of 24, Feroz Shah Road. This property, built on a plot of land admeasuring 1. 315 acres, was sold for a sum of Rs. 23 lacs by Smt. Vidya Malhotra to USSR Embassy. One Mr. R. C. Mehta, architect, was examined by the land owner. He deposed that the superstructure on 24, Feroz Shah Road, in his opinion, should cost about Rs. 2 lacs. The value of the land on his estimate came to Rs. 21 lacs. The market price of the land on this basis works out to Rs. 330/-per square yard. This was his evidence. There is no evidence in rebuttal as against this.

( 5 ) AT the stage of the Land Acquisition Collector a curious thing happened in this case. It is mentioned in the award of the Collector that "the Land and Development Officer has intimated that the market value fixed by the Government for Tilak Marg is Rs. 150/- per square yard on the material date, that is 6-3-1967. These values have been fixed by the Government for the purpose of levy of various charges under the lease. " But the Collector did not accept the value intimated by the L. and D. O. The reason he gave is that Tilak Marg area can be used for institutional purposes only. Therefore he reduced the value as given by the L. and D. O. by 1/3rd and assessed the value of the land at Rs. 100/- per square yard. At the stage of reference the learned Judge did not agree with this method of reduction. He acted on the information "intimated" by the L. and D. O. to the Collector. According to the intimation he fixed the market value of the land at Rs. 150/- per square yard.

( 6 ) IN our opinion the method adopted by the Collector as well as by the learned Judge is open to serious objection. The Act requires the Tribunal assessing compensation to determine the market value of the land at the relevant date, which under the Act is the date of notification under S. 4 of the Act. Mr. Rattan Lal, learned counsel for the Union of India, has drawn our attention to a booklet issued by the Government of India. In this booklet the land values of lease hold lands in various localities of New Delhi and Old Delhi for residential and commercial purposes have been given as prevailing in 1965. It is interesting to note that Barakhamba Road which is in the close vicinity of Tilak Marg has been valued at Rs. 200/- per square yard for residential purposes and Rs. 400/- per square yard for c