Indian Kanoon - Search engine for Indian Law

4. It was observed by Supreme Court in Tribeni Devi and Ors. v. Collector of Ranchi AIR 1972 SC 1417, the sale deeds of the lands situated in the vicinity and the comparable benefits and advantages which they have furnish a rough and ready method of computing the market value though this is not the only method of computing the market value, other methods being rent which the owner was actually receiving at the relevant point of time or the rent which the neighbouring lands of similar nature were fetching by capitalizing the said rent according to the prevailing rate of interest, opinion of experts, and agriculture yield basis method, i.e. yield of the acquired land with reference to revenue records and keeping in mind the potential and nature of the land - wet (irrigated), dry and barren (banjar). Normally, where the compensation is awarded on agricultural yield or capitalization method basis, the principle of multiplier is also applied for final determination. However, the first method, i.e., computation of market value based upon the sale deeds of the lands situated in the vicinity by far remains the best method for the purpose of computation of the compensation payable to the land owners.