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1994 Supreme(SC) 275
SUPREME COURT OF INDIA
K. RAMASWAMY AND N. VENKATACHALA, JJ.
Addl. Special Land Acquisition Officer, Appellant
Versus
Yamanappa Basalingappa Chalwadi, Respondent.
Important Points
Subject
Land Law - Land Acquisition
Act Referred
Headnote
Facts of the case:
Notification was issued for the acquisition of 100 acres of dry land. Evidence established that two crops were raised annually, and the annual yield was determined to be Rs. 720/- per acre after deducting expenses. The lower court had applied a multiplier of 15 years to determine the market value of the land.
Findings of Court:
The court found that a ten-year multiplier is the proper method for determining the total market value by following the method of capitalisation, as this principle is just and reasonable.
Issues: What is the suitable multiplier applicable to agricultural crops for the determination of the market value of land under the method of capitalisation?
Ratio Decidendi: The court held that the capitalization method using a ten-year multiplier is the appropriate and just principle for valuing agricultural land based on its annual yield when no other acceptable evidence is available.
Result: Appeal partly allowed.
Legal Category Hierarchy
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administrative law
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land acquisition
-
compensation
- valuation of land
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compensation
-
land acquisition
M.VIRAPPA, S.C.BIRLA
JUDGMENT
These appeals by Special Leave arise from the judgment of the High Court of Karnataka dated August 10, 1981 in Misc. Appeal Nos. 1406-1428/1981. The High Court following its earlier judgment in Special Land Acquisition Officer, Hassan v. Mallesha M. S. (1975) 2 Mysore Law Journal 74 applying a multiplier of 15 years for the average annual income for Rs. 720/ - per acre upheld the fixation of the market value at Rs. 800/- per acre. Thus these appeals by .Special Leave. Notification under S. 4(1) dated March 13, 1980 was published in the State Gazette on July 24, 1980 acquiring 100 acres of land for Upper Krishna Project. i.e. District Judge found from the evidence that the lands are madikattu lands and two dry crops of groundnuts in the first season, Jowar or cotton in the second rabi season were being raised in those lands. He determined the market value of the crop at Rs. 720/ - after deducting the expenses incurred thereof. Though it is doubtful whether two crops could be raised in dry lands, under appeal we proceed on the footing that the evidence adduced would show that in the lands under acquisition two crops were raised and that annual yield was at Rs. 720/- per acre. But the crucial question is what is the suitable multiplier which would be applicable to the agricultural crops. This question is squarely covered by a judgment of this Court in Spl. Land Acquisition Officer, Davangere v. P. Veerabharappa (1984) 2 SCC 120. While disposing of batch of the appeals this Court held that ten years multiplier would be the proper method in determining the total market value by following the method of capitalisation as just and reasonable principle. We find that this principle is quite consistent with the valuation of the land allowed by multiplying the value of the annual yield, in the absence of any other acceptable evidence. Following the ratio we hold that ten years multiplier is the proper method. The appeals are accordingly allowed in part and the respondents are entitled to the solatium at 15% and interest @ 5% from the date of taking possession till date of deposit. The appellant is entitled to recover the balance amount from the respondents. No costs.
Appeal partly allowed.
For Citation : AIR 1994 SC 1836
