COLLECTOR, LAND ACQUISITION vs GANARAM DHOBA

The Supreme Court held that the compensation for land acquisition under the Land Acquisition Act, 1894 must be calculated using a proper multiplier, establishing that a multiplier of 10 is appropriate for agricultural land, rather than the 16 applied by the lower courts. The Court rejected the State's argument based on outdated yield statistics from 1957, affirming that the current yield must be considered. The Court allowed the appeal, modifying the compensation to Rs.14,300 per acre, and granted additional solatium and interest as per the amended Act.