K.A.A. RAJA AND ORS. versus STATE OF KERALA AND ANR.

Citation: [1994] 3 S.C.R. 740 · Decided: 26-04-1994 · Supreme Court of India · Bench: K. RAMASWAMY, N. VENKATACHALA · Disposal: Appeal(s) allowed
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Judgment (excerpt)

A 
K.A.A. RAJA AND ORS. 
~ ' 
v. 
STATE OF KERALA AND ANR. 
APRIL 26, 1994 
B 
[K. RAMASWAMY AND N. VENKATACHALA, JJ.] 
• 
Kera/a land Acquisition Act. 1962 : S.3( 1 }-Acquisition of cardamom 
• 
plantation Capitalisation method used in determining market value of the 
land so acquired-Determination of appropriate multiplier. 
c 
The respondent proposed to acquire 52.88 acres of cardamom plan ta-
tion by a Notification issued under Sec.3(1) of the Kerala Land Acquisition 
Act, 1962, for Periyar Tiger Reserve. The possession was handed over to the 
State and the Land Acquisition Officer determined the market value of the 
D 
said land in a sum ofRs.14,75,385.25. On reference under Sec.18 of the Act, 
the Subordinate Judge enhanced the market value to 1,97,77,772.60. The 
appeal by the State was allowed by the High Court and the High Court 
determined the market value of the said land at Rs. 23,73,967.70. 
Partly allowing the appeal against the said judgment, this Court 
E 
HELD: 1. The High Court was right, fair andjust in determining the 
rate of Rs. 220 per kg. as the reasonable prevailing price of cardamom 
taking into account the prevailing price for three years prior to the year 
1982-83 and worked it out at the average and determined the price at Rs. 220 
F 
per kg. But the multiplier for the purpose of capitalisation of net income 
> 
applied by the High Court was not correct. In every case it is the duty of the 
claimant who is demanding a higher compensation for his land to place 
before the court necessary evidence on the value of land and equally heavy 
is the responsibility and duty of the concerned officers to place before the 
reference court the true state of affairs regarding the number of trees, their 
G ages, their yield etc. in particul..,. where capitalisation method is to be 
adopted to determine market value of the acquired land. 
[742-H, 743-A, 744-A-C] 
·· Joginder Singh Saini v. State of Horyana, AIR (1990) SC 1219 and 
., 
Periyar and Pareekanni Rubbers Ltd. v. State of Kera/a, AIR (1990) SC 2192, 
H referred to. 
740 
K.A.A. RAJ A v. ST A TE 0 F KER ALA. 
741 
2. The Court equally has duty on an overall consideration of facts 
A 
and circumstances available in particular case on hand, keeping in view 
the number of trees, their ages, their yield and the price fetched or likely 
to fetch in the open market should apply appropriate multiplier in deter-
mining the market value of the pla!ltation. 7 years multiplier for purpose 
of capitalisation of net income would he proper multiplier though income 
may vary depending on evidence. Calculating on the aforesaid basis, the 
appellant would be entitled to the market value in a sum Rs. 36 lakhs for 
the total extent of 32 acres 88 cents and usual benefits of 30% solatium on 
B 
the enhanced market value and interest at 9% for the first year from the 
date of taking possession and 15% interest from the date of expiry of one 
year till date of making payment of compensation. However, the entitle-
C 
ment with regard to the payments of the interest under Sec. 23(1-A) would 
depend upon the decision to be rendered by the Constitution Bench in K.S. 
Paripoomam's case. [744-E·F, 745-A·C] 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2001 of D 
1992. 
From the Judgment and Order dated 21.1.91 of the Kerala High 
Court in L.A.A. No. 226 of 1990. 
M.R. Thyagarajan, M.A. Chinnasamy and M.K. Krishnamoorthy for E 
the Appellants. 
M.T. George for the Respondents. 
The following.Order of the Court was delivered : 
F 
This appeal by special leave arises from the judgment of the Division 
Bench of the Kerala High Court dated January 21 1991 in L.A.A. No 
226/90 and cross-objections. The appellants are the claimants. The Govern-
ment of Kerala proposed to acquire 52.88 acres of Cardamom plantation 
situated in Mappara village in Peermade Taluk of Idukki district of Kerala 
State by a notification issued under s.3(1) of the Kerala Land Acquisition G 
Act, 1961, Act 21 of 1962, for short 'the Act' and published in the State 
Gazette on January 10, 1984, for Periyar Tiger reserved forest. Possession 
was taken on May 7, 1984 and the same was handed over to the Forest 
.,, ~ 
Department on June 8, 1984. The Land Acquisition Officer by his award 
dated October 10, 1985 detenpined the market value of the said land in a H 
742 
SUPREME COURT REPORTS 
[1994] 3 S.C.R. 
A 
sum of Rs. 14,75,385.25. On reference under s.18 of the Act, the Land 
Acquisition Court (Subordina
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