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2010 (12) TMI 1342

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..... ation Under Section 4(1) of the Land Acquisition Act, 1894 ('Act' for short) was issued only on 27.8.1993. The Land Acquisition Officer, by award dated 30.6.1994, offered compensation at the rate of Rs. 16,000/- per acre. The reference Court determined the market value of the entire extent of 4 acres 38 guntas as Rs. 12,28,500/- by capitalisation of yield method. It awarded the said sum as compensation with additional market value at 12% per annum on such market value from the date of notification Under Section 4(1) of the Act till date of award or possession whichever was earlier, 30% solatium on the market value and interest at 9% per annum from date of possession for a period of one year and thereafter at 15% per annum till date .....

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..... Section 4(1) of the Act. The Land Acquisition Officer, while making the award, did not value the land as a sweet lime orchard. He ignored the sweet lime trees in the land and valued it as bare land at Rs. 16,000/- per acre (Rs. 70,080/- for the entire land). The Reference Court, after referring to the factual background and the evidence, adopted the yield capitalisation method, to arrive at the compensation. It held that the net annual income realised by the Respondents was Rs. 270/- per sweet lime tree per annum or in all Rs. 94,500/- from the entire orchard with 350 trees. It adopted the multiplier of 13 and arrived at the compensation for the acquired land with the sweet lime trees as 94500 x 13=Rs. 12,28,500/- (that is Rs. 280,479/45 pe .....

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..... ier of 10 would be appropriate but depending on the special facts and circumstances, the multiplier may vary. In Rama Rana and Krishi Utpadan Mandi Samiti, this Court adopted a multiplier of 10. In Gurcharan Singh and Airports Authority of India, this Court applied a multiplier of 8 for arriving at the market value of orchard land. The general trend is to adopt a multiplier of 8 to 10 in regard to plantations, fruit groves and orchards and a multiplier ranging from 10 to 12 to agricultural crop land. 7. There are no special circumstances to apply the higher multiplier of 12 or 13 or the lower multiplier of 8. Having regard to the evidence in regard to the nature, standard and position of the orchard, we are of the view that the standar .....

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..... even where possession had been taken on a date prior to the date of preliminary notification. We, therefore, hold that interest Under Section 28 of the Act could have been awarded only from the date of preliminary notification, even if possession was taken prior to the date of the preliminary notification. 10. Though Respondents are not entitled to interest Under Section 28 of the Act, from a date prior to the date of preliminary notification, they are entitle to damages for wrongful use and damages of the lands from the date of possession till date of notification Under Section 4(1) of the Act. In R.L. Jain (supra), this Court held: In a case where the landowner is dispossessed prior to the issuance of preliminary notification U .....

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..... d to damages for wrongful use and occupation from the date of dispossession to date of preliminary notification, we proceed to determine the same at Rs. 94,500/- per annum for the period from 8.6.1988 to 27.8.1993 (which is rounded of to five years) with interest at 6% per annum from 30.6.1994 to date of payment. 12. In view of the above, this appeal is allowed in part as follows: (a) The compensation for the land acquired (4 acres 38 cents) is determined as Rs. 9,45,000/- with solatium Under Section 23(2) of the Act. (b) The Respondents will also be entitled to damages of Rs. 4,72,500/- (at the rate of Rs. 94,500/- per annum) for use and occupation, for the period between date of dispossession and date of preliminary notific .....

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