MUNICIPAL COMMITTEE, BHATINDA & ORS. vs BALWANT SINGH & ORS.

The Supreme Court addressed the valuation of agricultural land acquired under Section 4(1) of the Land Acquisition Act, 1894, determining that the lands possess potential value for residential and commercial use due to their location within municipal limits. The Court upheld the Division Bench's decision to grant a uniform compensation rate of Rs. 1,50,000 per acre for the entire area, rejecting the earlier tiered compensation approach. The ruling emphasized that the agricultural status of the land at the time of notification does not preclude its potential for higher market value based on its urban context.