Elias M. Cohen And Another v. Secy. Of State .

1. These two appeals arise from a reference to the District Court of Bhagalpur by the Collector in respect of the acquisition of two plots of orchard land near Bhagalpur town. The method whereby the Collector arrived at the amount of compensation to be paid was to calculate the value of ordinary occupancy rights in neighbouring plots and add thereto the value of the trees of which these orchards were composed. This seems us to be hardly a satisfactory method. It should only have been adopted failing the possibility of arriving at the value of the lands as orchard lands. The value of an orchard depends largely upon the suitability of the land for orchard purposes, upon the care taken of it and upon its situation with regard to the market. It is not a question merely of the value of the trees and the earth in which the trees grow. The two cannot be valued separately; they must be valued together.

2. The learned vakil for the appellants has shown us a statement whereby the 32 bighas of orchard land from which these lands have been acquired are shown to give to the appellants an income of Rs. 2,074 per annum, less some Rs. 60 or Rs. 70 a month for expenses of establishment. Deducting Rs. 700 or Rs. 800 from the total annual income the profit per bigha is approximately Rs. 40 per annum.

3. The annual value of the portion acquired may be taken at Rs. 280 per annum, which at 15 years purchase a fair price for an orchard in which the trees and soil need to be constantly renewed may be capitalised at Rs. 4,200. Taking the matter from another point of view we find that orchard land adjacent to the present orchard land was prior to the acquisition, valued by vendor and purchaser at Rs. 30 a kattah or Rs. 600 a bigha. Similar orchardil and in a neighbouring tala appears to have fetched much the same price. Rs. 600 per bigha would also come to Rs. 4,200 for this orchard inclusive of all trees etc., and compensation for removal. We were of opinion that the fair price for the orchard which is the subject of Appeal No. 222 is Rs. 4,200 inclusive of all claims but exclusive of 15 per cent additional compensation. In Appeal No. 221 the land may be valued at the same rate, its Rs. 600 per bigha, exclusive of the additional compensation. Each side will bear his own costs throughout the litigation.

V.S/R.K

4. Order accordingly.