Mehrawal Khewaji Trust(Regd) ... vs State Of Punjab & Ors

The Supreme Court held that under Section 18 of the Land Acquisition Act, 1894, the determination of compensation must reflect the market value of the land, considering its potential and strategic location. The Court found that the Reference Court erred in averaging the compensation based on sale exemplars instead of relying on the highest sale prices. Consequently, the Court remanded the case for reassessment of compensation, emphasizing the need for a fair valuation reflective of the land's commercial value.