In Brief
Karnal Improvement Trust acquired land in 1973 under the Punjab Town Improvement Act and passed an initial award in 1976 at Rs. 200-100 per sq. yard. After multiple remands and appeals spanning decades, the High Court awarded Rs. 1336 per sq. yard, but the Supreme Court found this determination was made without proper fresh assessment. The Court held that compensation must be determined under the statutory law of 1976 (not later amendments) and awarded Rs. 1000 per sq. yard based on comparable sale transactions. The Court ruled that jurisdiction under Section 18 is limited to compensation alone and does not extend to allotment of plots. The appeals were disposed with directions for payment within three months.
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