Land Acquisition Act, 1894:Sections 4(1), 23 & 24.

Land Acquisition Compensation Determination of Compensation awarded taking into account the existing potentiality of land-Further enhancement of compensation taking into account future potentiality of Land held not permissible.

While determining compensation for certain lands acquired the Reference Court took into account the existing potentialities of the land and awarded compensation at the rate of Rs. 200 per decimal. It further enhanced compensation at 25% for future potentialities which was upheld by the High Court. In appeals to this Court on the question whether the Courts having determined the compensation by taking into account the existing potential value were right in further enhancing the compensation at 25% for future potentialities.