MERWANJI MANCHERJI CAMA Vs. GOVERNMENT OF BOMBAY

JUDGEMENT

(1.) Hypothetical building schemes are the usual basis of valuation in the case of building land. I can say this from my own experience of such cases. The ordinary course will be to call a surveyor who will say that in his opinion the land is worth so much. When asked for his reasons he will proceed to unfold his scheme, saying that he values it at so much because an owner, by expending so much on buildings of such and such a description, can realise such and such a rent, which when capitalized will be worth the sum named by him. In cross-examination, the surveyor s scheme will or course have to be tested in all its details. But the scheme is certainly admissible in evidence and a proper mode of valuation.] Macnaghten, J.

(2.) I am of the same opinion. Hypothetical building schemes seem to me to be the most obvious basis of valuation in cases like these. Of course the weight to be attached to such a scheme is a question for the tribunal hearing the case.

(3.) The other Law Lords also concurred in the above expression of opinion. Erle Richards, J.