We are thankful to Er Sudhakar Nagaratna for sharing this valuable information & tips for the benefits to all aspirants.

One of our member shared his experience & success story “How I remembered the case laws which were found useful in my preparation for exam.”

“They may be useful for other members also.”

KEY TO REMEMBER IMPORTANT CASE LAWS DURING EXAMINATION PREPARATION:

1. Verghese

a) 15 % variation in the opinion of two valuers

2. Gold Coast selection Trust Ltd., vs Humphry ( By Justice Vincent simon)
Valuation is an art, not an exact science, mathematical certainly is not demanded nor indeed is it possible.

3. Hays Will trust case

Price varies with circumstances
There is a range of the price of the property. Only competent valuer can fix the market value of the property.

4. V.C.Ramchandra vs Commissioner of wealth tax

Lowest value should be accepted

If there are more than one valuation of the same property, the one which is reasonable and near to the correct market value having due regard to all the relavant facts and circumstances of the case alone should be accepted.

5. Subhkaran Chowdhury vs IAC

Valuation of fully tenanted property should be made on the basis of capitalization of rental methods.

6. Wenger:

Rental Capitalisation can be replaced by market approach.

Wenger & co and others vs District valuation officer:

For owner occupied portion, the rates prevalent of sale of commercial flats and for tented portion the capitalization of rental value accepted (combination of methods accepted)

7. Sorab Talati

Rate of return (1.5.% on long term government

security and 2.5% more on average yeild)

8. P.N.Sikand vs Commissioner of wealth tax

For lease hold property (50% unearned increase of land has to go to
lessor)

9. Jasti Rohini

Small extent land can not be adopted for large extent

10. Shubh Ram & others vs State of Haryana

Same as 10( Hypothetical development model-33% deduction for development cost)

The concept of deduction of development cost to arrive at market value of undeveloped land from sale instances of developed land has evolved.

11.Jawaji Naganatham
Stamp duty is not evidence for market value

12.Hargovinddas (appeared in IBBI exam)
How to value land under Land acquisition

13. Rustum Cooper Vs Union of India

Property includes ownership estates and interests in corporeal things and also rights such as trademarks, copy rights, patents (Scope of property)

14. CIT vs Ashimasinha (appeared in IBBI exam)

CIT vs Anoopkumar

Land value was artificially brought to zero due to tenancy and rent act

15. S.C. in Shanthidevi’s case

Net return on the cost of construction should be 2.5% more and on the value of land 1.5% more as compared to the net yield on Guilt Edged Security provided the land is free hold.

16. H.C. of Gujarat in case of Tribhovandas vs Chimanlal

If building collapsed on its own, even then tenancy rights did not extinguish but remains in force. Even new building constructed the land lord was bound to give preference to the tenants of collapsed building on rental basis.

17. H.C. of Bombay in case of Krishnan and Lakshman vs Narasimgarao

Tenants of structure washed away due to flood or collapsed under earth quake had first right as tenants in the new building built on the plot.

18. H.C. of M.P. in case of Dayarao singh vs Prameelabai

No act of lessor can be regarded as an actionable breach of covenant for quiet enjoyment unless it involves some physical or direct interference with the enjoyment of the given premises.

19. Rule in Henderson v Squire

When a tenant does not vacate the tenanted premises even after the expiry of notice he becomes liable to pay damages as well as Mesne profits to the lessor.

20. Land mark case of Rylands vs Fletcher

Pricipal of strict liability

21. M.C.Mehata vs Union of India

Absolute liability (Intentional)

22. S.C. in case of Saha Ratansi Khimji & sons vs Kumbhar sons hotel

In case of lease whole rent was paid in advance, the property is destroyed not for the fault of lessee before the period of lease the lessee has right to recover the proportionate part of the rent already paid.

23. Corisand case (appeared in IBBI exam)

A valuer is required to consider what will be the position of the property if it is to be sold within 12 months of valuation.

24. Justice Hadley (appeared in IBBI exam)

Value is an estimate of price as it ought to be

25. Workmen of N.G.Bank vs N.G.Bank

Depreciation is decrease in value of the property through wear, deterioration and obsolescence.

26. S.C. in the case of Mathura Prasad

Where a large area of land in an urban locality is sought to be acquired in determining market value, the method of belting is appropriate.