COMPENSATION FOB LOSS ol I'KOFITS 75 



of the most advanced districts as to whether the calculation 

 of the compensation for loss of profits could be actually 

 ascertained on this basis by means of a small local arbitration 

 court, tho landlord having two representatives and the 

 peasants two representatives, and the Tahsildar or other 

 Government officer acting as Chairman. I am afraid there 

 would be too much work for these courts, and that they 

 would need expert advice, and to obtain honest advisers 

 would be rather expensive. 



So far as I can see at present, therefore, the compensa- 

 tion for loss of profits would be more conveniently settled 

 for the present either by the courts or by a special Govern- 

 ment officer. The law might, however, lay down that the 

 minimum compensation for loss of profits should be 30 per 

 cent of the annual rental, and the maximum 100 per cent. 

 The field of disputes between the two parties would thus be 

 strictly limited and in most cases the compensation would 

 be settled by agreement. As in the case of compensation 

 for disturbance the landlord could, of course, apply to the 

 court to dispense with compensation for loss of profits on the 

 ground the tenant was being ejected for reasons consistent 

 with good estate management. 



The effect of providing compensation for disturbance 

 and for loss of profits on the two parties concerned would be 

 as follows. The landlord who desired to eject the tenant 

 merely for the sake of admitting another tenant and exacting 

 nazrana, would find himself faced with the necessity of 

 paying the court-fee equal to half the annual rental but 

 not exceeding Rs. 25 and compensation for disturbance and 

 loss of profits amounting possibly to more than the whole of 

 one year's rental. If the holding were rented at Rs. 50 he 

 might have to pay Rs. 85 altogether and could not pay less 

 than Rs. 50. If the rent of the holding were Rs. 100 

 he might have to pay Rs. 145 and could not pay less 



