ADMINISTRATION OF DAMAN & DIU vs SHRI MOHANLAL LALBHAI DESAI

The Supreme Court upheld the High Court's decision directing the appellants to initiate acquisition proceedings and pay just compensation under the Land Acquisition Act. The Court found that the respondent had been in possession of the land since 1968 under the assurance of compensation, which was not fulfilled. The Court emphasized that the land was taken for public purpose without proper acquisition proceedings, thus establishing the principle that compensation must be paid when land is acquired for public use as per statutory requirements.