M/S. HASANALI KHANBHAI & SONS AND ORS... vs STATE OF GUJARAT

The Supreme Court examined the compensation awarded under the Land Acquisition Act, 1894, specifically addressing the deduction of 60% made by the Gujarat High Court from the determined market value of Rs. 10 per sq. yard. The Court held that the High Court's reasoning for the deduction was flawed, emphasizing that the lands were capable of fetching a higher market value based on comparable sales. The Court ultimately ruled that the compensation should not have been reduced, thereby reinstating the original compensation rate of Rs. 10 per sq. yard without deductions.