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Supreme Court of India

THE SPECIAL LAND ACQUISITION OFFICERversusVIRUPAX SHANKAR NADAGOUDA

Citation
1996 INSC 915
Decided
21 August 1996
Disposal
Appeal(s) allowed

Holding

The Court held that a 10‑year multiplier is the proper method for calculating compensation under Section 23(1) and that the separate award for the well must be set aside.

Summary

The Special Land Acquisition Officer awarded compensation for agricultural land and a separate sum for a well. On reference, the civil judge increased the compensation, and the Karnataka High Court affirmed it. The appellant challenged the use of a 15‑year multiplier in calculating compensation under Section 23(1) of the Land Acquisition Act, 1894, arguing that a 10‑year multiplier is the correct standard as established in earlier Supreme Court decisions. He also contended that a separate award for the well was impermissible because the well’s benefit is already reflected in the land’s yield. The Supreme Court held that the 10‑year multiplier must be applied and that the separate well compensation must be set aside. Consequently, the appeals were allowed and the reference court was directed to recompute the compensation accordingly.

Issues considered

  • Whether a 15‑year multiplier or a 10‑year multiplier should be applied in computing compensation under Section 23(1) of the Land Acquisition Act, 1894.
  • Whether a separate compensation award for a well is permissible when the landowner already receives compensation based on the land's yield.

Legislation cited

Subjects

Land acquisitionCompensationMultiplierSection 23Well compensationReference courtSupreme Court

Judgment

                                 THE SPECIAL LAND ACQUISITION OFFICER                                  A
                                                            v.
                                       VIRUPAX SHANKAR NADAGOUDA
           '""'I,
                                                  AUGUST 21, 1996
            ')

                                 [K. RAMASWAMY AND G.B. PATTANAIK, JJ.]                                B

                             Land Acquisition Act, 1894 : Section 23( 1). Land Acquisition-Com-
                      pensation-Principles for detennination of-Reference Court applied multi-
  c<                  plier of 15 years in computing the annual yield-Compensation granted for
·~ .,..               acquisition of land-Separate compensation also awarded for well-Appeal           c
                      prefe11"ed by State-Held the Reference Cowt eJTed in granting compensation
                      for the well-Setting aside of the same 10 years multiplier should be applied
                      to the annual value of the yield for calculation of compensation under Section
                      23( 1) of the Act-Reference Cowt·directed to recalculate the compensation.
   1
                                                                                                       D
    '
___,._
                            Land Acquisition Officer v. P. Veerabhadrappa Etc. Etc., [1984] 2 SCR
                      386, referred to.
       '      ;

                            CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 703-704
                      of 1989.

                           From the Judgment and Order dated 9.9.83 of the Karnataka High              E
                      Court in M.F.A. Nos. 1385--86 of 1979)

                            M. Veerappa for the Appellant.

                            The following Order of the Court was delivered :
                                                                                                       F
                            The Land Acquisition Officer awarded compensation @ Rs. 3,500 .
                      per acre for bagayat land and for the rest of the land Girayat dry) at Rs.
                      960 per acre. On reference, the civil Judge enhanced the compensation to
                      Rs. 10,000 per acre for bagayat lands in which sugar cane was grown and
               ....   for the rest of the land he granted at Rs. 4000 per acre. The High Court
                                                                                                 G
              -       of Karnataka in the impugned judgment dated September 9, 1988 con-
                      firmed the same. Thus these appeals by special leave.

                            Two contentions have been raised by Shri Veerappa, learned counsel
                      for the appellant. The Reference Court had wrongly applied multiplier of
                      15 years in computing the annual yield. This Court in Land Acquisition H
                                                         25
    26                    SUPREME COURT REPORTS (1996) SUPP. 5 S.C.R.

A   Officer v. P. Veerabhadrappa Etc. Etc., (1984] 2 SCR 386 followed in other
    judgments, had held that 10 years' multiplier would b_e the proper method
    of calculation of the compensation.

          Accordingly 10 years' multiplier should be applied in determing
                                                                                     --
    compensation under Section 23 (1) of the land Acquisition Act, 1894. He
B   also contended that separate compensation granted the well in the sum Rs.
    13,000 is not valid in law. When the owner of the land is getting the water
    drawn from the well to raise the crops and when he claims compensation
    for the land on the basis of the yield, he cannot separately claim compen-
    sation for the well. Therefore, the reference Court obviously was in error
C   in granting compensation for the well at Rs. 13,000. It is accordingly set
    aside. 10 years' multiplier should be applied to the annual value of the yield
    for calculation of compensation under Section 23(1) of the Act. The
    referenc1~ Court accordingly is directed to recalculate the compensation
    under these principles and determine the compensation and pay over the
    same to the respondents. If the amount has already been recovered, it
D   would be open to the appellant to recover the balance amount.

          The appeals are accordingly allowed. No costs.

    T.N.A.                                                      Appeals allowed.


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