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Issues: (i) Whether the compensation could be sustained on the facts of the case despite the use of a 15 years multiplier instead of 10 years; (ii) Whether the claimants were entitled to the benefits of the Land Acquisition Amendment Act, 1984.
Issue (i): Whether the compensation could be sustained on the facts of the case despite the use of a 15 years multiplier instead of 10 years.
Analysis: The assessment of compensation on an annual yield basis by applying a 15 years multiplier was treated as legally incorrect in principle, as the accepted approach required adoption of a 10 years multiplier. However, the Court declined to interfere in the particular matter because the acquired land was a small extent and the error was not treated as warranting disturbance on the facts of the case. The relief granted was stated not to operate as a precedent for future matters.
Conclusion: The award was left undisturbed in this case, though the correct multiplier was held to be 10 years for future cases.
Issue (ii): Whether the claimants were entitled to the benefits of the Land Acquisition Amendment Act, 1984.
Analysis: The Court held that the amended provisions applied only to claims pending before the Reference Court on or after the commencement of the Amendment Act. Since the Reference Court award had been passed on 14 December 1981, long before the amendment came into force, the claimants could not obtain the benefits introduced by the amendment in the form of 30 per cent solatium, additional amount at 12 per cent per annum, or the enhanced interest regime under the amended Section 28. The claimants were, however, entitled to the benefits available under the local amendment, namely 15 per cent solatium and 5 per cent interest per annum on the enhanced compensation from the date of possession until deposit or payment.
Conclusion: The claimants were not entitled to the benefits of the Land Acquisition Amendment Act, 1984, but were entitled only to the local statutory benefits stated above.
Final Conclusion: The appeals were allowed, the compensation determination was not interfered with on the facts of the case, and the claimants were granted only the limited statutory benefits available under the local amendment, not the benefits of the Land Acquisition Amendment Act, 1984.
Ratio Decidendi: Where the statutory amendment is not attracted because the reference award predates the amendment's commencement, the enhanced benefits introduced by that amendment cannot be claimed; compensation based on the accepted multiplier method remains a question that may be left undisturbed on special facts without creating precedent.