In Brief
The State of Himachal Pradesh appealed the award of compensation for land acquired for road construction. The Reference Court had fixed compensation uniformly at Rs.7 lakhs per bigha for 18.15 bighas based on a sale of just 1 biswa (small unit) by a claimant in the acquisition proceedings. The Supreme Court held that this comparable sale was unsuitable—the vendor was a claimant, and the extent was too small compared to the acquired land. The Court remitted the case to the Reference Court for fresh determination, directing it to consider comparable sales from adjoining villages or apply alternative valuation methods, and to reconsider the interest claim independently. Appeals by the claimants for enhanced interest were dismissed.
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