Compensation rule for unlawful demolition of the house

Yes the court will decide the compensation amount of illegal demolish.

What's the cause of Demolition?            Yes, there are very case laws through which various Hon'ble High Courts as well Apex Court has said that the price has to be paid @ market price. 

If the demolition has been done for such acts which is illegal or you have violated the laws, then market price will not be applicable 

The court in its orders will certainly give relief to the victim of the government's atrocious acts of demolishing the living house either knowingly or unknowingly.

You may see the orders passed by the court while hoilding the government action as illegal.

There is civil as well as criminal remedy available to such an action taken by authority which differ in each case. 

Show the demolition order to a local prudent lawyer for proper analyses, professional advise and necessary proceeding.