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1986 DIGILAW 443 (SC)

UNION OF INDIA v. PHANGA RAM

1986-10-01

A.P.SEN, B.C.RAY

body1986
( 1 ) IN these cases, the delay is condoned. Substitution allowed. Special leave granted. ( 2 ) THESE appeals are concluded by the decision of this court in Union of India v. Smt. Shanti Devi1 and must be allowed. In these cases, both the High court as well as the learned Additional District Judge applied the twenty years purchase rule for determining the compensation of these lands acquired under S. 4 (1) of the Land Acquisition Act, 1894 in the years 1962 and 1963. In Smt. Shanti Devi case 1, this court has laid down that the proper multiplier to be adopted for the purpose of capitalisation based on the rate of return at the relevant date i. e. the dates of notifications issued under S. 4 (1) of the Act in the years 1962 and 1963 would be fifteen and that the courts were wrong in adopting the rule of twenty years purchase. Accordingly, the proper basis of fixing compensation in these cases being fifteen years purchase, the compensation awardedfor lands in these cases should be reduced by one-fourth. The claimants shall get solatium of 15 per cent on the compensation computed on the above basis on the aggregate amount from the date of taking possession of the land till the date of payment. ( 3 ) THE result therefore is that the appeals must succeed and are allowed. The judgment and decrees of the courts below shall stand modified accordingly. Costs shall be borne by the parties as incurred.