Rama Rana and Ors. [AIR 1997 SC 1845]. While
applying the capitalization method and multiplier of 10, the Reference
Court had granted compensation ... method of sale statistics and determine compensation by applying
the capitalization method.
15.As is evident from the above stated facts, the principal controversy
between
solatium is payable on that portion of land value based on
capitalization method of yielding rubber trees and directed to compute
balance amount payable under ... market value of land which were partly based
on capitalization method of the yielding rubber trees for the planted area
and partly based
sixth
wherever the amount of compensation had been determined by
the method of capitalization. The respondents shall get
solatium 15% on the compensation computed ... actual or immediately prospective profits of the
lands acquired. Normally, the methods of capitalizing the
actual or immediately prospective profits or the rent
difference in the
potentialities of the two types of lands. The method of
capitalization is also one of the recognised methods which
is adopted ... ground rent as the basis for determination of market
value by capitalization method in recent years. It may
incidentally be mentioned that even that decision
granted compensation for
the fruit bearing trees on the basis of capitalization
method in addition to the market value of the land.
The Reference Court ... regarding the number of trees, their age,
yield, in particular where capitalization method is to be adopted to
determine the market value of the acquired
legislature.
Ascertained value; is a relevant and sound principle based
on capitalisation method which is accepted for valuation of
land and properties. The contention that ... Deductions on account of maintenance and repairs is
essential in the capitalization method. Insurance would
also be an essential deduction in the capitalisation method
this Court reiterated the methods of valuation and
also stated that those methods do not preclude the Court from
taking into consideration other circumstances ... this Court
held that when capitalization method for valuation is applied,
proper multiplier should be 10. Similarly, in Special Land
Acquisition Officer v. Virupax Shankar
awarded to land separately and
the trees again valued by the capitalization method by taking the annual
yield. However, this Court has held that ... annual net
income multiplied by appropriate capitalization of 15 years would be the
proper and fair method to determine the market value but not both
land with buildings especially
those used for business purposes, is the method of
capitalization of return actually received or which might
reasonably be received from ... method adopted by the Land
Acquisition Officer was in the circumstances
the only appropriate method; and
(2) that the rate of capitalization was
unduly high
compensation to Rs.2,25,000/ per acre by
applying the capitalization method. Aggrieved thereby, Misc. Second
3
Appeal was preferred in the High Court
