M/S. Raj Homes Pvt. Ltd. & Ors vs State Of M.P. & Ors

The Supreme Court ruled that the imposition of premium under rule 14 of the Madhya Pradesh Land Revenue Code, 1959, is arbitrary and violates Article 14 of the Constitution of India. The Court emphasized that the premium must be reasonable and proportionate to the land's use and purpose, rejecting the flat-rate premium imposed by the State. Consequently, the Court held that the State of Madhya Pradesh cannot collect the premium as per the impugned rule, thereby allowing the appeal.