STATE OF BIHAR vs RATAN LAL SAHU & ORS. ETC.

The Supreme Court held that the compensation for land acquired under the Land Acquisition Act, 1894 must reflect the appropriate market value, which was determined to be Rs. 6,000 per acre for Class I wet crop lands. The Court found that the lower courts had incorrectly relied on an earlier award without proper justification and ruled that no separate value could be granted for the tank and well used for cultivation. The additional amount awarded under Section 23(1-A) was deemed illegal and set aside, while the claimants were entitled to interest and solatium on the enhanced compensation.