STATE OF GUJARAT vs RAMA RANA

The Supreme Court addressed the determination of compensation under the Land Acquisition Act, 1894, specifically Section 4(1) and Section 18. The Court held that in the absence of sale deeds, oral evidence regarding crop yield can be considered, but must be scrutinized carefully. The Court set aside the lower courts' awards, establishing that the appropriate compensation should be Rs. 20,500 per acre with a solatium of 30% on the enhanced compensation, applying a multiplier of 10 years and deducting 50% for cultivation expenses.