TEK CHAND (DEAD) BY L.RS. AND ORS. vs UNION OF INDIA AND ORS. ETC.

The Supreme Court held that compensation for land acquisition under the Land Acquisition Act, 1894 must be determined based on a hypothetical sale of similar land at the time of notification under Section 4. The Court found that the Delhi High Court's rationale for awarding higher compensation to the DLF Co. based on its ability to develop land was flawed. The Court emphasized that compensation should not be influenced by the potentiality of the land in the hands of the acquirer. The Court ultimately set aside the High Court's decision and directed a reassessment of compensation based on comparable sales.