The Special Land Acquisition Officer vs Mahesh Vadilal Gandhi And Ors. on 24 November, 1992
In para 12 of the aforesaid judgment, it was observed by the Apex Court that payment of 100 times the net monthly income i.e. 8 1/3 times the net annual income from the property could not be considered too low having regard to the rate of interest on safe investments prevailing from 1976-77. The observation made by the Apex Court in this case indicate that there is nothing wrong in applying capitalization method where acquired property was let out almost fully and fetched rental income. I must clarify that I am not applying basis of compensation being fixed on footing of 100 months rent in this case in view of the fact that the Amending Act is not attracted in this case. However, the general observation made by the Apex Court in respect of application of capitalized method as one of recognised method of valuation are of considerable significance for the purpose of deciding L.A.R. No. 105 of 1975. I have relied on the judgment in the case of State of Maharashtra v. Basantibai only for limited purpose as aforesaid.