Important point
Normally in cases where compensation for acquired land is awarded on yield basis, multiplier of 10 is proper and appropriate.

Judgment

Thakker, J.—Delay condoned.

Leave granted.

2. This appeal is directed against an order dated November 14, 2002 passed by the High Court of Karnataka at Bangalore in MFA No. 270 of 1996 (LAC). By the said order, the High Court dismissed the appeal filed by the appellant herein and confirmed the order passed by the Reference Court on September 11, 1995 in L.A.C. No. 72 of 1984.

3. The facts in brief are that a piece of land bearing Survey No. 335/7, admeasuring 5.99 acres situated at Sovenahalli village, Sandur Taluk was acquired for restoration of Sovenahalli tank for the village. A notification under Section 4(1) of the Land Acquisition Act, 1894 (hereinafter referred to as “the Act”) was issued and published in Karnataka Gazette on October 7, 1982. After completion of the proceedings under the Act and after observing all formalities, the Land Acquisition Officer awarded compensation at the rate of Rs. 2,728/- per acre to the claimant vide his award dated January 25, 1984. The claimant received the amount of compensation under protest and submitted an application under Section 18 of the Act requesting the Land Acquisition Officer to refer the matter to the court. The matter was accordingly referred to the Court of Civil Judge at Hospet. The Reference Court observed that the Land Acquisition Officer had not considered the fertility and potentiality of the acquired land with other lands in respect of which sale transactions were on record. It also stated that the land in question, as disclosed in the award, had irrigation facilities in view of the presence of two wells on the land. The Court also found that there were fruit bearing trees on the land - Mango 72, Margosa 10, Tarmarind 60, Coconut 1, Sandal wood 1, Neerala 1, Hatti 1, Kanaga 1 and others 90. The Reference Court, after considering evidence of the claimant as well as his two witnesses, held that the claimant was entitled to enhanced compensation. Considering the income of fruit bearing trees, the Court held that if it is multiplied by capitalization of 15 years, the claimant would be entitled to an amount more than six lacs. In view of the fact, however, that the claimant had claimed compensation of Rs. five lacs, he would not be entitled to more. But the amount claimed by him cannot be said to be unreasonable or excessive and accordingly the said amount was awarded. The reference was thus allowed and the claimant was held entitled to Rs. five lacs along with interest as mentioned in the order. The said order was confirmed by the High Court which is challenged in the present appeal.

4. We have heard learned counsel for the parties. The learned counsel for the appellant raised two contentions. Firstly, he submitted that the High Court has committed an error of law in not deducting amount towards cost of cultivation. Secondly, it was contended that the Reference Court had erroneously applied multiplier of 15 for capitalizing the income. Such multiplier should not be more than 10. On both these grounds, therefore, according to the learned counsel, the impugned order is liable to be set aside and the order passed by the Land Acquisition Officer deserves to be restored.

5. Learned counsel for the claimant, on the other hand, submitted that having considered the rival contentions of the parties and keeping in view the evidence on record, the Reference Court enhanced compensation to be payable to the claimant and the High Court rightly did not think it proper to interfere with the said order. The present appeal, therefore, deserves to be dismissed.

6. Having given our anxious consideration to the submissions of the parties and having considered the relevant decisions of this Court, we are of the view that the appeal deserves to be partly allowed.

7. So far as first point is concerned, the learned counsel for the appellant relied upon a decision of this Court in State of Gujarat vs. Rama Rana, (1987) 2 SCC 693. In that case compensation was awarded to the claimant on yiel