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1. Reduction of compensation under the Land Acquisition Act by the High Court based on erroneous grounds. Detailed Analysis: The judgment delivered by the Supreme Court involved two civil appeals related to the acquisition of land for different purposes. The appellants were aggrieved by the High Court's decision to substantially reduce the enhanced compensation allowed by the Subordinate Judge under Section 18 of the Land Acquisition Act. The High Court had reduced the compensation based on the principle laid down in a previous case, Tribeni Devi v. Collector, Ranchi, which required a deduction of 1/3 of the value when a large extent of land is acquired under a housing scheme. The appellants argued that the High Court had erroneously applied the deduction principle without considering the nature of the land and the purpose for which it was acquired. They contended that the land was fully developed and suitable for house sites, thus no deduction should have been made. The respondent, on the other hand, argued that the acquired land needed development for construction purposes, justifying the deduction. The Supreme Court emphasized the importance of determining the market value of the land at the time of acquisition based on genuine transactions for similar land. It highlighted that the value of fully developed small plots in prime locations could differ from larger undeveloped areas, and deductions might be necessary to account for development expenses. The Court cited previous cases to support the principle that deductions may be warranted based on the circumstances of the acquisition. The Court examined the specific characteristics of the acquired land, noting its proximity to important infrastructure like highways and railways, as well as its development potential for housing. It concluded that the High Court erred in applying the deduction principle without considering the advantageous position and existing amenities of the land. Therefore, the Supreme Court allowed the appeals, directing the respondent to pay compensation as determined by the Subordinate Judge, without any deductions. In conclusion, the Supreme Court clarified the principles governing compensation in land acquisition cases, emphasizing the need to consider all relevant factors, including the nature of the land, existing developments, and potential usage. The judgment highlighted that deductions should be justified by the specific circumstances of each case and should not be applied indiscriminately.
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