PRAKASH AMICHAND SHAH vs STATE OF GUJARAT

The Supreme Court interpreted the Bombay Town Planning Act, 1954, particularly Sections 32, 33, 34, 65, and 69, clarifying the process for compulsory land acquisition and compensation for land affected by town planning schemes. The Court held that local authorities must declare their intention to create a town planning scheme and follow prescribed procedures, including the appointment of a Town Planning Officer and the establishment of a Board of Appeal. It was determined that owners of property injuriously affected by such schemes are entitled to compensation, which must be calculated based on the market value at the time of declaration of the scheme.