GANGA DEVI & ORS. ETC. versus STATE OF U.P.

Citation: [1972] 3 S.C.R. 431 · Decided: 11-02-1972 · Supreme Court of India · Bench: A.N. RAY · Disposal: Dismissed

Judgment (excerpt)

A 
B 
c 
D 
E 
F 
G 
H 
GANGA DEVI & ORS. ETC. 
v. 
STATE OF U.P. 
February 11, 1972 
[A. N. RAY ANP M. H. BEG, JJ.] 
431 
U.P. Zamindari Abolition.and La11<I Reforms Act, 1950, s. 39(l)(e) 
(i) and (ii)-A.verage annual income how deterniined-Fortst inco1ne. 
ij includes income dtrived by processing wood. 
The forests of the appellants vested in the respondent-State as a result 
<>f the notification µnder the U.P. Zamindari Abolition and Land Reforms 
Act, 1950, and the Compensation Officer determined the basis of com-
pensation. 
Jn appeal by the respondent the High Court held that the Compen· 
sation Officer in determining the compensation was wrong in arriving at 
the average annual income by adding the annual income, under s. 39( I) 
( e )( i) on the basis of a period of 25 years and the appraioemtnt of 
the annual yield, under s. 39(1)(e)(ii), on the date of vesting. 
Jn appeals to this Court, 
HELD : ( 1) The High C.ourt was correct in holding that the average 
annual income from forest under s. 39(1)(e) of the Act cm.Id not be 
computed by arithmetical addition of the figures arrived at on the basis 
of cl. ( i) and on the ba,is of cl. (ii). The section ,,,,,.xi of computa· 
ti0n of average annual income from forest, (i) on t1'c basis of ioc<;ime 
for a period of 20 to 40 agricultural years immedialely ,-ding the 
date of vesting as the Compensation Officer may consider rca!OflabJe. 
and (ii) on the appraisement of the annual yield of the forest on the 
date of vesting. 
Under the first clause. the actual income derived from 
the forest for a number of years before the date of vesting as the Com-
pensation Officer may consider reasonable is to be taken and the average 
calculated. 
Under the second clause the annual yield as on the date of 
vesting is to be appraised. This should be done, Inter alia. by taking 
ihto considetation the num'Oer and age of trees, the area pf cultivation 
and the produce. Therefore. the compensation officer has to compute 
the 'average annual income' by taking recourse to both the iPethods 
but not by adding the figures on the basis of cl. (i) and on tlic.,h!ll of 
ct (ii l [435 D·H; 436 A-BJ 
' 
(2) The High Court rightly held that forest income was reftnhlc lo 
price of the standing timber. Hence any income which the appenants 
derived by processing wood, was income in the nature of trade and 
would not be forest income. [436 E-GJ 
CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 41 to 
46 of 1967. 
Appeals from the judgment and order dated September 1. 1965 
of the Allahabad Hig,h Court in First Appeals Nos. 513 of '1955 
etc. 
15-L8R7S,·pCJ/72 
432 
SUPREME COURT REPORTS 
[1972] 3 S.C.ll. 
M. C. Chagla, S. R. Agarwala, A. T. M. Sampath and E. C. 
Agarwala, for the appellants (in all the appeals). 
L. M. Singhvi and 0. P. Rana, for the respondent (in all the 
appeals). 
A 
The Judgment of the Court was delivered by 
B 
Ray, J. These six appeals are by certificate from the judgment 
dated 1 September, 1965 of the High Court at Allahabad, Lala 
Triloki Nath and Lala Digambar Prasad filed four appeals and the 
State two in the High Court agaiust the order dated 6 September, 
1955 of the Compensation Officer. During the pendency of the 
appeals the Lalas died and the appellants were brought on record. 
The High Court allowed the appeals filed by the State and allow-
ed in part the appeals filed by the appellants. The appellants have 
come up by certificate in these six appeals. 
Each of the Lalas held equal one half share in each of the 
forests in the villages of Chharba and Prithipur in Dehra Dun Dis-
trict. 
By a notification dated 1 July, 1952 under the U.P. Zamin-
dari Abolition and Land Reforms Act, 1950 (hereinafter called 
the Act) the entire furest vested in the State of Uttar Pradesh. 
On 2 May, 1953 the Lalas received the Draft Compensation 
Assessment Rolls under section 46 (1 )(b) of the Act which show-
ed annual compensation to be paid to the Lalas as nil. 
The Lalas thereafter on 20 May, 1953 filed their objections 
against the draft compensation roll and claimed compensation 
under the provisions of the Act. 
c 
D 
E 
With regard to village Chharba the Lalas claimed that it was a 
valuable sal forest comprising 225 acres. 
The Lalas assessed .the 
worth of the forest at Rs. 3,40,000. Tkey claimed that sayar 
F 
income during the 10 agricultural years immediately preceding the 
date of vesting should be computed separately and added to the 
gross income from the fores

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