In Brief
In disputes over compensation for acquired land, the Supreme Court held that when land is acquired for public works but not fully utilised, the Government must return the unutilised portion to the owners. For the land actually used, compensation must be determined afresh by the High Court based on actual utilisation and evidence from both parties, rather than fixed per-acre rates. The Court offered the claimants a choice: accept fixed compensation (Rs.30 lakhs per acre for water works, Rs.40 lakhs for sewage treatment), or pursue remand for individual assessment of actual use. The Court emphasised that fixed valuations do not necessarily reflect principles of just compensation.
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