Supreme Court Upholds Landowners' Right to Higher Compensation in Land Acquisition Cases

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In a landmark ruling, the Supreme Court has held that courts cannot limit compensation in land acquisition cases to the amount claimed by landowners, if the law entitles them to a higher sum. The judgment emphasizes the judiciary's duty to assess and award just compensation based on statutory principles, not on the claims made by landowners. According to the court, once a correct market value of the acquired land is determined, it cannot be reduced solely because the landowner did not specifically seek a higher amount. The bench of justices Prashant Kumar Mishra and Vipul M Pancholi underscored that it is the court's duty to assess the compensation for which the landholder is entitled, not just the claims made by them. The ruling strengthens safeguards against undervaluation of land and underscores the equitable role of courts in balancing state power of acquisition with the property rights of individuals. In this case, the court overturned a Karnataka High Court judgment that had enhanced compensation but restricted the final payable amount to a lower figure because that was the extent of the landowners' claim. The Supreme Court found this approach legally unsustainable and directed that the petitioner was entitled to compensation at the rate of ₹16.94 lakh per acre, along with all consequential benefits admissible under the award. The bench also clarified that the petitioner would be required to pay the differential court fee on the enhanced amount of compensation, as directed by the High Court. The ruling came in an appeal challenging the Karnataka High Court judgment and has significant implications for land acquisition proceedings across the country. By rejecting a claim-based ceiling on compensation, the ruling further emphasizes the judiciary's duty to ensure landowners receive just and fair compensation in accordance with law.