KABBIDI POSAYYA vs SPECIAL TAHSILDAR

The Supreme Court addressed the compensation for land acquired under the Land Acquisition Act, 1894, specifically under Section 4(1). The Court held that the High Court erred in reducing the compensation from Rs. 22,000 to Rs. 400 per acre, emphasizing that the market value must reflect the true worth of the land, especially considering the tribal status of the appellants and the prohibitions on land sales. The Court reinstated the compensation at Rs. 22,000 per acre, aligning with previous judgments and ensuring fair rehabilitation for the tribal claimants.