Section 7(1) in Kerala Compensation For Tenants Improvements Act, 1958
(1)Improvement producing an increase in the value of the annual net produce.- When the improvement is not an improvement to which section 11 applies and has caused an increase in the value of the annual net produce of the holding, the court shall determine, as nearly as may be, the average net money value of such increase and shall award as compensation for the improvement three-fourths of the amount arrival at by capitalizing such net money value at 20 times.Explanation 1. - The value of the net produce means the amount remaining after deducting from the value of the gross produce the cost of cultivation and the Government assessment and local taxes.Explanation 2. - In determining the net money value of the increase, regard shall also be had to the condition of the improvement and probable duration of its effects and the labour and capital required for making such improvement.
