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Issues involved:
1. Challenge to compensation judgment by Airports Authority of India. 2. Applicability of multiplier in determining compensation for cutting of trees. 3. Consideration of legal principles in determining market value of acquired property. Analysis: Issue 1: Challenge to compensation judgment The appellant, Airports Authority of India, challenged the judgment and order passed by the High Court of Guwahati at Agartala, which determined compensation for cutting of trees using a multiplier of 18 years yield. The appellant contended that the impugned order contradicted the law established by the Supreme Court in a previous case, State of Haryana v. Gurcharan Singh and Anr., where it was held that the multiplier should not exceed 8 years when determining market value based on tree yield. Issue 2: Applicability of multiplier The main contention revolved around the justification of the multiplier applied by the High Court. The Supreme Court reiterated the principle that when determining market value based on tree yield, an 8 years' multiplier is appropriate, as established in previous decisions. The Court emphasized the importance of capitalization in converting future benefits to present value and highlighted the need to consider factors like future income, duration, and risk when capitalizing income from properties. Issue 3: Legal principles in determining market value The Court discussed the method of evaluating the market value of acquired property, emphasizing that land and fruit-bearing trees should be considered as one unit. The market value could be assessed based on net annual income multiplied by an appropriate multiplier for capitalization. The Court referred to previous judgments to support the use of specific multipliers based on prevailing rates of interest and safe investment options. In conclusion, the Supreme Court dismissed the appeal, noting that the compensation awarded was relatively small, and citing precedents where interference was refused in similar cases with meager compensation. The Court highlighted the importance of following established legal principles, particularly regarding the application of multipliers in determining compensation for damages such as cutting of trees.
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