Skip to content


The State of Madras Vs. Rev. Brother Joseph - Court Judgment

LegalCrystal Citation
SubjectProperty
CourtSupreme Court of India
Decided On
Case NumberCivil Appeal Nos. 1468-69 of 1967
Judge
Reported inAIR1973SC2463; (1973)2SCC504; [1974]1SCR309; 1973(5)LC800(SC)
ActsLand Acquisition Act - Sections 4(1)
AppellantThe State of Madras
RespondentRev. Brother Joseph
Appellant Advocate A.V. Rangam and; A. Subhashini, Advs
Respondent Advocate V.M. Tarkunde and ; Naunit Lal, Advs.
Cases ReferredIn Elias M. Cohen v. Secy
Prior historyFrom the Judgment and Decree dated the 10th April 1962 of the High Court of Madras Appeal Suit Nos. 63 and 78 of 1959
Excerpt:
.....than 20 years - compensation should be awarded on net income out of trees from 20 years at their market value - held, compensation fixed at market value was not unreasonable. - [a.k. sarkar,; k.n. wanchoo and; raghubar dayal, jj.] in 1949, the banking companies act was passed with a view to protect and secure the interests of depositors. in 1953 s. 45-o was enacted by the banking companies (amendment) act, in pursuance of the recommendations of the banking companies liquidation proceedings committee. section 45-o (1) provided that in computing the period of limitation prescribed for an application by a banking company which is being wound up, the period commencing from the date of the presentation of the winding up petition shall be excluded; and s. 45-o (3) provided that sub-s...........him for valuing coconut and orange topes was to capitalize the net income from these topes at 20 years' purchase.5. dissatisfied with the award, the respondent moved for reference under section 18 of the land acquisition act and the case was referred to the subordinate judge, tirunelveli.6. the learned subordinate judge increased the estimated yield from the coconut and orange trees as well as the price of the yield but capitalized the net income at 20 years' purchase. against this decision, the state of madras filed a.s. no. 63 of 1959, while the respondent filed a.s. no. 78 of 1959 claiming a further enhancement.7. the high court, by the common judgment under appeal, allowed the appeals in part and dismissed them in other respects. as regards the coconut and orange topes, the high.....
Judgment:

K.K. Mathew, J.

1. These two appeals, by certificate, are directed against the judgment and decree of the High Court of Madras in A.S. Nos. 63 and 78 of 1959 dated April 10, 1962.

2. The appellant, the Government of Madras, acquired 9 acres and 86 cents of land in Tirunelveli District as it was needed for reserve area in Block III of Manimuthar Project. The notification under Section 4(1) of the Land Acquisition Act was published on March 7, 1956.

3. The area of the land with which we are concerned in this appeal is one acre and 59 cents comprised of 3 topes, of coconuts and oranges.

4. The Land Acquisition Officer, by his award, gave a total compensation of Rs. 28,572-15-6 inclusive of solatium. The method adopted by him for valuing coconut and orange topes was to capitalize the net income from these topes at 20 years' purchase.

5. Dissatisfied with the award, the respondent moved for reference under Section 18 of the Land Acquisition Act and the case was referred to the Subordinate Judge, Tirunelveli.

6. The learned Subordinate Judge increased the estimated yield from the coconut and orange trees as well as the price of the yield but capitalized the net income at 20 years' purchase. Against this decision, the State of Madras filed A.S. No. 63 of 1959, while the respondent filed A.S. No. 78 of 1959 claiming a further enhancement.

7. The High Court, by the common judgment under appeal, allowed the appeals in part and dismissed them in other respects. As regards the coconut and orange topes, the High Court held that capitalization of the net income at 20 years' purchase was a fair method for arriving at their market value.

8. In this appeal, the only point argued by counsel was the High Court went wrong in capitalizing the net income of the topes at 20 years' purchase. Counsel relied on the decision of the Madras High Court in Shunmuga Velavuda Mudaliar and Ors. v. Collector of Tanjore : AIR1926Mad945 where it was held that the proper method to find out the market value of coconut garden would be to Capitalize the net income from the garden at 10 years' purchase and said that there was no reason for the High Court to depart from the principle there laid down.

9. It may be noted that no reason was given in that ruling why capitalization of the net income should be at 10 years' purchase. All that the Court said was :

In Rajammal v. Head Quarters Deputy Collector, Vellore (1914) 25 I.C. 393, a Bench of this Court estimated the value of a tope of trees at 20 years' annual rental; but those were mango trees which as stated by the learned Judges, are long lived and yield produce for a number of years.

10. There was no discussion in the judgment of the principle on the basis of which such a mode of calculation was adopted.

11. In Kompalli Nageshwara Rao and Ors. v. Special Deputy Collector, Land Acquisition : AIR1959AP52 ., the Court said that the approved method for valuing orchards is to capitalize their net income at a number of years' purchase which has to be fixed with reference to the nature of the trees and other circumstances and capitalized the net income at 15 years' purchase for finding out the market value of the coconut garden and the orange orchard in question in that case. In Elias M. Cohen v. Secy, of State 43 ind. Cas 17(2): A.I.R. 1918 Pat. 625., the net income from an orchard was capitalized at 15 years' purchase to find out its market value.

12. In this case, the Land Acquisition Officer found in his award that all the fruit bearing trees will yield for more than 20 years. That was the reason which weighed with him to capitalize the net income of these topes at 20 years' purchase to find out their market value. We do not think that the learned Subordinate Judge and the High Court went wrong in accepting this estimate of the average yielding life of coconut and orange trees. Therefore, we do not think that the capitalization of the net yield from these topes at 20 years' purchase was not a fair method to arrive at the market value of these topes. We are not satisfied that the method of valuation adopted for finding out the market value of the topes was in the circumstances, in any way unreasonable.

13. The appeals fail and they are dismissed with costs.


Save Judgments// Add Notes // Store Search Result sets // Organizer Client Files //