PAINDER SINGH vs UNION OF INDIA

The Supreme Court dismissed the special leave petitions challenging the compensation awarded under the Land Acquisition Act, 1894. The Court held that the fixation of market value under Section 23(1) of the Act must be based on evidence of prevailing market value at the time of notification under Section 4(1), and not on government circulars for stamp duty purposes. The reliance on such circulars by the lower courts was deemed illegal, and no further evidence was presented to justify an increase in compensation beyond the High Court's award of Rs.12,000 per bigha.