TRIBENI DEVI AND ORS. vs COLLECTOR OF RANCHI

The Supreme Court clarified the principles for determining compensation under the Land Acquisition Act, 1894, specifically sections 23 and 24, emphasizing that compensation should reflect the market value of the land, which includes both its current condition and potential value. The Court established that valuation methods include expert opinions, recent bona fide transactions, and potential profits, but the High Court's reliance on a distant sale-deed and its separate assessment of potential value were deemed unjustified. The Court held that compensation for severance must be considered when part of the land is acquired, leading to a modification of the High Court's decision.