Kerala Varmah Valia Rajah Avergal of Cherakkal Kovilagam and Others vs Ondan Ramunni, Karnavan and Manager of his tarwad affairs and Others

Exhibit A provides for the planting of four kinds of fruit trees for which compensation at the ordinary rate is to be paid on the surrender of the

paramba. There is no special contract such as is contemplated in Section 7, Madras Act I of 1887, which would exempt the agreement from the

operation of the Act. The stipulation is apparently for the benefit of the landlord. Nothing is said about other improvements, but the right of the

tenant to make customary improvements is not excluded.

The landlord is therefore bound to pay compensation for improvements at the ordinary rate, and the only question is whether that rate is to be

the rate prevailing at the time compensation has to be paid or that prevailing at some former date.

We have no doubt that the landlord is bound to pay the rate prevailing at the date the compensation is paid.

That rate is now governed by Madras Act I of 1887 and we answer the question referred to the Full Bench in the affirmative. The compensation

must of course be limited to improvements recognized as such in Section 3 of the Act.