STATE OF MADHYA PRADESH vs SMT. SHANTABHAI & OTHERS

The Supreme Court held that the High Court erred in enhancing compensation for land acquired under the Land Acquisition Act, 1894, without considering the respondent's own purchase price of Rs. 1,08,000/- just two days prior to the notification under Section 4(1). The Court emphasized that no prudent buyer would pay significantly more for the same land shortly after its purchase. Consequently, the Supreme Court set aside the High Court's judgment and affirmed the District Judge's award, allowing the appeal with costs.