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GAUDI RAMAMURTHY & ORS. versus THE STATE OF ANDHRA PRADESH & ORS.

Citation: [1967] 1 S.C.R. 181 · Decided: 26-08-1966 · Supreme Court of India · Bench: K. SUBBA RAO · Disposal: Dismissed

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Judgment (excerpt)

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GA UDI RAMAMURTHY & ORS. 
v. 
THE STATE OF ANDHRA PRADESH & ORS. 
August 26, 1966 
[K. SUBBA RAo, C. J. AND J. M. SHELAT, J.] 
Madras Ealates (Abolition and Conversion into Ryotwari) Act (XXVI 
of 1948), s. 3(b) and Regulation XXV o/ 1802, s. 4-Estate vesting In 
Govermnent under notification issued under Estat~s Abolition Ac1-Cer-
Nln lands gronled be/ore pernta11'!nt Settlement partly 111 lieu o/ services 
and partly /or rent-Such lands whether excluded from estate under Regu-
lation o/ 1802. 
The appellants and respondents 2 w S were owners of Jagga111peta 
estate in the East Godavari Dis net of Andhra Pradesh. The ·vantari 
Muttah', a piece of land about 400 acres in area, was granted to their 
predecessor in interest in return 
fQr services as 'vantarlu' or 'foot ser-
\"8llts' long before the permanent settlement. 
After the passing of the 
Madras Estates (Abolition and Conversion into Ryotwari) Act XXVI of 
1948 dispute arooe whether the land formed part of the Jaggampeta estate 
for if it did not, the Act would not apply to it. 
After various stages of 
litigatioo a Division Bench of the High Court decided against the 
appellants. They came to this Court with special leave. 
It was contended on behalf of the '"l'Pellants that the said Muttah 
was granted to their predecessor-in.interest before the permanent aettle~ 
mcnt by the then Zrunindar for public services subject to a payment 
of favourable rent, that, subsequently, the services were 
discontinued, 
but the grant was continued subject to the payment of favourable 
rent, 
that at the time of the permanent settlement the said Muttah was excluded 
from tbe asselli of the Zamindari and that therefore the said Muttah· 
was outside "the scope of the 
notification issued 
by the 
Government 
under Madras Act XXVI of 1948. 
On behalf of the rf8pondent 
State 
it was urged that •he grant was subject to the payment of the full assess-
ment, that the said assessment was paid partly in cash and partly by 
personal services to the Zrunindar, that at the time of the Permaneet 
Settlement the said Muttah was included in the assets of the Zamindari 
and that as it was a part of the Zamindari the Government at the time of 
the Inam Settlement did not take any steps to enfranchise the same. 
HEID : (i) Under s. 4 of the Regulation XXV of 1802 the Govern-
ment was empowered to exclude it'lcome from lakhiraj lands l.e. lands 
exempt from payment of public revenue and of all lands paying only 
favou-able quit rents, from the assets of the Zamindari at the time of 
the ·Permanent Settlement. 
If the lands fall squarely within the said 
two categories, there is ·a presumption that they were excluded from the 
assets of the Zamindari. But if the grant of land was subject to per-
formance' of personal services to the Zamindar or subject 
to the pav-
ment of favourable rents and also performance of personal services to 
the Z3mindar, 
there is no such 
presumption. 
Indeed the presumption 
i• the t in such a case the income from the land was not excluded from 
the a;,;sets of the Zamindari. The reason for the rule is that in one case 
the personal servioe are equated with the full asse'1sment and in the other 
• 
181 
J82 
SUPREME COURT REPORTS 
!J967] I S.C.R. 
tho favourable rent toge1her wilh. tbe personal services is equaled wilb 
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full assasmeot. If the Zammdar m oo.e shape or another was getting the 
fuD W1Se&Omen1 on the lands tliere was no reason why the Government 
would havo foreF.• its revenuo by excluding such lands from tho assets 
ot the Zamtndan. [185 FJ 
Maliaboob SarafarajfiVant Sri Raja ParthasaraJhy Appa Rao Bahadur 
Zamindari Garu v. The Secretary of State, (1913) J.L.R. 38 Mad. 620 and 
Secretary of Stare '" Rajah Vasireddy, A.l.R. 1929 Mad. 676, referred 
B 
to. 
(ii)· The grant in the prosent case wa• a prc-sett!emen1 grant 
The 
land was granted to the Vantarlu subjec1 to the payment of' favourahlc 
rent and also subject to tho performanco of personal services to tho 
Zamindar. 
The Government either before tho permanent settlement or 
subsoquent thereto never claimed a right to rosume the same. 
Indeed 
ii was the Zamindar who was giving remissions to the Vantarlu whenever 
C 
their services were not required. 
There is a presumption that such a 
land was not excluded from the assets of the Zamindari and the evidence 
adduced in the case not only did 
not rebul that pr.,,;umption bul 
also 
to some extent supported it. Tho Divis

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