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AIRPORTS AUTHORITY OF INDIA versus SATYAGOPAL ROY AND ORS.

Citation: [2002] 2 S.C.R. 505 · Decided: 15-03-2002 · Supreme Court of India · Bench: M.B. SHAH · Disposal: Dismissed

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Judgment (excerpt)

AIRPORTS AUTHORITY OF INDIA 
A 
v. 
SATYAGOPAL ROY AND ORS. 
MARCH I5, 2002 
[M.B. SHAH, S.N. VARIAVA AND B.N. AGRAWAL, JJ.] 
B 
Compensation-Award of-For cutting of trees-Determination of market 
value on the basis of yield from the trees-Application of multiplier of 18 
years yield-Held not justified-8 years multiplier is appropriate-Aircraft C 
Act, 1934. 
Words and Phrases : 
"Capitalisation" and "Capitalising Rate "-Meaning of 
In the present case while determining the compensation for cutting of D 
trees of the claimants-Respondents High Court had applied multiplier of 18 
years yield. 
In appeal to this Court, appellant contended that the order of High 
Court was against the law laid down in *Gurucharan Singh 's case wherein it 
was held that under no circumstances, multiplier could be more than 8 years E 
when the market value is determined on the basis of the yield from the trees 
or plantation. Respondents-claimants contended that the case does not call 
for interference since the amount awarded was very small 
Dismissing the appeal, the Court 
HELD : I. It is settled law that when the market value is determined 
on the basis of the yield from the tree or plantation, 8 years multiplier shall 
be the appropriate multiplier. High Court committed error in awarding 
compensation adopting the multiplier of 18. It should have determined the 
compensation payable to the respondents on th~ basis of the yield from the 
trees by applying 8 years' multiplier. [510-H; 511-A) 
*State of Haryana v. Gurcharan Singh and Anr., [1995] Suppl 2 SCC 637, 
relied on. 
Union of India and Anr. v. Shanti Devi and Ors., [1983] 4 SCC 542 and 
Special Land Acquisition Officer, Davangera v. P. Veerabhadarappa and Ors., 
505 
F 
G 
H 
506 
SUPREME COURT REPORTS 
[2002] 2 S.C.R. 
, A [1984) 2 sec 120, referred to. 
2. This is not a fit case for interference in this appeal, considering the 
small amount of compensation awarded to the claimants. [511-E] 
State of Madras v. Rev. Brother Joseph, Am (1973) SC 2463 and Special 
B Land Acquisition Officer, Ma/aprabha Dam Project, Saundatti and Ors. v. 
Madivalappa Basalingappa Melavanki and Ors., [1995] 5 SCC 670, relied on. 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2091 of 
2002. 
C 
From the Judgment and Order dated 27. 7 .2000 of the Gauhati High 
Court in F.A. No. 68 of 1995. 
Mrs. Rachna Joshi Issar and Mrs. Sangeeta Bansal for the Appellant. 
Rajiv Mehta for the Respondents. 
D 
The Judgment of the Court was delivered by 
SHAH, J. Leave granted. 
Appellant-Airports Authority of India has challenged the judgment 
E and order dated 27.7.2000 passed by the High Court of Guwahati at Agartala 
in First Appeal No. 68 of 1995, whereby the Court determined compensation 
for cutting of trees by applying the multiplier of 18 years' yield. 
It is the contention of the learned counsel for the appellant that the 
impugned order is against the law laid down by this Court in State of Haryana 
p v. Gurcharan Singh and Anr., [1995] Suppl. 2 SCC 637 wherein this Court 
has held that under no circumstances, the multiplier should be more than 8 
years when the market value is determined on the basis of the yield from the 
trees or plantation. 
G 
She has also submitted that as such the entire award of compensation 
to the respondent is also illegal because by Notification dated 15th March, 
1979 issued by the Government of India, Ministry of Tourism and Civil 
Aviation, New Delhi in exercise of powers conferred under Section 9A ofthe 
Aircraft Act, 1934 (22 of 1934), respondents were directed that no building 
or structure should be constructed or erected or no tree should be planted on 
H the land specified therein which included the land belonging to the claimants. 
>-' 
I 
AIRPORTS AUTHORITY OF INDIA v. SATYAGOPAL ROY [SHAH, J.] 507 
She further pointed out that after issuance of the said Notification, A 
compensation was paid for cutting the trees which were existing on the land. 
Thereafter, similar Notification was issued on 5th January, 1988 for the same 
purpose and the claimants again claimed compensation for cutting of trees 
planted by them on the specified land. In our view, the aforesaid submission 
does not require any consideration as it was neither raised before the High B 
Court nor it was contended before the Arbitrator appointed by the Central 
Government. Further, this Court has issued notice confined to the question 
whether multiplier applied by the impugned order is justified in

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