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As per case facts, land was acquired for a power project. The Land Acquisition Collector awarded compensation, which the Reference Court later enhanced. Both landowners and the acquiring body appealed
...to the High Court, seeking further enhancement and reduction respectively. Landowners argued for higher compensation due to the land's potential, while the acquiring body contended the Reference Court's assessment was excessive and based on non-comparable small land parcels, ignoring genuine sale deeds. The question arose whether the Reference Court correctly assessed the market value by relying on an unrepresentative sale instance and disregarding numerous comparable transactions for the acquired villages. Finally, the High Court determined that the Reference Court erred by relying on a tiny, non-comparable plot and ignoring relevant sale instances of the acquired land. It also found the 'no litigation incentive' wrongly applied. Therefore, the High Court set aside the Reference Court's Awards, allowing the acquiring body's appeals and dismissing the landowners' appeals, leading to a reduction in compensation.
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