Shiv Ram vs State Of H.P. & Ors

The Supreme Court held that the compensation for land acquired under the Land Acquisition Act, 1894 must reflect the market value, as established by evidence of similar land acquisitions. The Court found that the Division Bench's assessment of the land's quality and potential was inaccurate, as evidence indicated that the lands in question were of similar quality to those previously acquired at a higher rate. Consequently, the Court enhanced the compensation to Rs.1.75 lakh per bigha, aligning it with the earlier acquisition rates, thus overturning the lower court's decision.