K. PADMARAJU @ PADMANABHA RAJU vs SR. REGIONAL MANAGER,F.C.I.,A.P. .

The Supreme Court held that under the Land Acquisition Act, 1894, specifically Section 4(1) and Section 26, the compensation for acquired land must reflect its market value. The Court found that the reference Court's reliance on a single sale deed for a small parcel of land was erroneous, and determined the reasonable compensation for the acquired agricultural land to be Rs.50,000/- per acre, with additional statutory solatium and interest. The appeal was allowed, setting aside the High Court's order and modifying the reference Court's award accordingly.