Supreme Court sets compensation, damages, and interest rates under Land Acquisition Act.

The Supreme Court partially allowed the appeal, setting compensation at Rs. 9,45,000/- with solatium, awarding damages for use and occupation at Rs. 4,72,500/-, and specifying interest rates under Sections 23(2) and 28 of the Land Acquisition Act. Each party was directed to bear their own costs.

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Issues involved: Determination of excessive compensation for acquired land, appropriate multiplier for market value calculation, award of additional amount and interest under specific sections of the Land Acquisition Act.

Compensation Determination:
The Respondents owned a sweet lime orchard acquired for a percolation tank construction. The Land Acquisition Officer offered compensation at Rs. 16,000/- per acre, but the Reference Court determined market value at Rs. 12,28,500/- using the yield capitalisation method. The High Court upheld this amount, leading to the appeal on the excessive compensation issue.

Multiplier for Market Value Calculation:
The State challenged the multiplier of 13 adopted by the Reference Court, arguing for a lower multiplier of 8 or a maximum of 10. The Respondent cited the precedent in Union of India v. Shanti Devi, supporting a multiplier of 13. The Supreme Court reviewed various decisions and settled on a standard multiplier of 10 for the orchard land, resulting in compensation of Rs. 9,45,000/- for the acquired land with trees.

Award of Additional Amount and Interest:
The Reference Court awarded additional amount under Section 23(1A) and interest under Section 28 from the date of possession. The Supreme Court clarified that additional amount under Section 23(1A) is only applicable if possession is taken after the notification under Section 4(1) and interest under Section 28 should start from the date of preliminary notification. However, the Respondents were entitled to damages for wrongful use and occupation from the date of possession till the notification date, calculated at Rs. 94,500/- per annum with interest at 6% per annum.

Conclusion:
The Supreme Court partially allowed the appeal, determining the compensation at Rs. 9,45,000/- with solatium, awarding damages for use and occupation at Rs. 4,72,500/-, and specifying the interest rates applicable under Sections 23(2) and 28 of the Act. Each party was directed to bear their own costs.

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