UNION OF INDIA & ANR. versus SMT. SHANTI DEVI ETC. ETC.

UNION OF INDIA & ANR. versus SMT. SHANTI DEVI ETC. ETC.

The proper multiplier for determining compensation for land acquired in 1962-63 under the capitalisation principle is fifteen years’ purchase, not twenty years’ purchase; as the lands were agricultural without special potential, compensation must be reduced accordingly.

Parties
Appellant: Union of India; Appellant: State of Himachal Pradesh; Respondent: Smt. Shanti Devi
Jurisdiction
India
Judgment Date
05 October 1983
Procedural Posture
Civil Appeal / Appeal by Special Leave From High Court Judgment
Outcome
Appeals partly allowed
Legal Topics
Compensation Determination, Valuation of Acquired Land, Capitalisation Principle, Multiplier for Compensation
Land Acquisition Compensation Determination Valuation of Acquired Land Capitalisation Principle Multiplier for Compensation

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Parties

Union of India

Appellant

State of Himachal Pradesh

Appellant

Smt. Shanti Devi

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From High Court Judgment

Legal Issues

  1. 1 What is the appropriate multiplier to be adopted for compensation determination in land acquired in 1962-63 based on capitalisation principle?
  2. 2 Whether the District Court and High Court erred in applying twenty years' purchase rule instead of the correct multiplier

Ratio Decidendi

The proper multiplier for determining compensation for land acquired in 1962-63 under the capitalisation principle is fifteen years’ purchase, not twenty years’ purchase; as the lands were agricultural without special potential, compensation must be reduced accordingly.

Court Disposition

Appeals partly allowed

Orders

  • Compensation for land of the best category reduced from Rs. 1,000 per kanal to Rs. 750 per kanal by applying fifteen years' purchase rule instead of twenty.
  • Similarly, compensation for other categories of land to be reduced by one-fourth from original amounts.