STATE OF MAHARASHTRA vs BABU GOVIND GAVATE ETC.

The Supreme Court addressed the legality of the deduction of 1/3rd of the compensation awarded under the Land Acquisition Act, 1894, specifically Section 4(1). The Court held that such a deduction was unjustified as it contravened the rights of the tenant under the Bombay Tenancy and Agricultural Lands Act, 1948, particularly Sections 43(1) and 43(1A), which protect the rights of tenants and ensure their ownership and enjoyment of the land. The High Court's decision to increase compensation and direct payment of the deducted amount was upheld.