STATE OF KERALA Vs. THARU ALIAS DAVIS

JUDGEMENT

(1.) This appeal by the State arises out of a land acquisition reference; and the question for consideration is whether the compensation awarded for two markets is to be reduced. The respondents, the owners of the markets, have filed a memorandum of cross objections; and the question therein is whether they are to be awarded a higher compensation.

(2.) The two markets, the General Market and the Parayil Market, are within the Kunnamkulam Municipality; and they were acquired to be run by the Municipality. Possession was given on 1st April 1958 under Ex. P 6; and it shows that the Municipality agreed to pay Rs. 500/- per month, being the profits which the owners reasonably expected from the markets if the surrender were not made, or interest at 6 per cent on the compensation amount, whichever was higher, until the amount was paid.

(3.) The acquisition authorities awarded land value for a portion of the sites at Rs. 100/- per cent and Rs. 50/- per cent for the rest; and they also awarded compensation for the buildings separately. The respondents claimed land value at the rate of Rs. 500/- per cent for a portion of the sites and at the rate of Rs. 300/- for the rest and they claimed Rs. 1,50,000/- as compensation for loss of earnings from the markets. Ultimately, the matter came on reference before the lower court; and the lower court considered that Rs. 100/- per cent for all the lands was a fair land value. The lower court also raised the value of the buildings by some extent. But in considering the question whether the respondents were entitled to get compensation for loss of earnings from the markets, the lower court came to the conclusion that the markets formed part of the lands and that compensation should be fixed on the method of capitalising the annual net income, rather than on the principle of compensating for the loss of the lands, the buildings, etc. separately. Ultimately, the lower court fixed Rs. 4934/- as the net annual income from the markets and awarded compensation at 12 years purchase with the usual solatium and interest. The State, as already stated, questions this award.