LexSTATE OF MADRAS versus K. N. SHANMUGHA MUDALIAR & ORS.
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536
STATE OF MADRAS
v.
K. N. SHANMUGHA MUDALIAR & ORS.
\
March 4, 1976
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(H. R. KHANNA AND P. K. GOSWAMI, JJ.]
1.And Acquisition Act, 1894--Sections 23 and 24--Quantum of compensation
-Madras Estates Abolition Act, 1948-Whether compensation under .Land
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Acquisition Act can be claimed if the estate is aboli.shed-/Lnterest on compen-
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sation to be allowed, from what date.
The State of Madras acquired land belonging to the respondent landlords.
The Land Acquisition Officer gave his award determining the compensation
payable.
On a reference made to the Subordinate Judge certain cvmp..!nsation
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was determined. Interest was awarded to the respondents on the compensation
amount from 1st December, 1949 because in the opinion of the Subordinate
Judge, possession of the land had been taken on that date.
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On an appeal, the High Court affirmed the decision of the Subordinate Judge
regarding the rate of compensation. The High Court also rejected the r.onten·
tion of the appellant that the land had vested in the Government ui1der the
Madras Estates Abolition Act, 1948, and, therefore, the respondents were not
entitled to compensation under the Land Acquisition Act. The High Court
found that there was no material on record to sho_w that the possession of the
land had been taken prior to the date of the award by the Land Acquisition
Officer. Interest was accordingly directed to run from the date of the award,
i.e. Noven1ber~ 1951.
ln an appeal by certificate, the appellant contended :
( 1) The land in question vested under the Abolition Act in the State
and the respondents were, therefore, not entitled to compensation
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under the Land Acquisition Act.
{2) The quantum of compensation awarded by the
High Court was
excessive.
(3) Interest should have been allowed from 1st December, 1949.
HELD : ( 1) There were two alternative courses open to the State either
to proceed under the Land Acquisition Act or to take over the land under
the Abolition Act. Although the estate was notified under the Abolition Act,
the proce~dings under that Act were stayed and the matter proceeded under
the Land Acquisition Act.
It was not open to the appellant in the particular
reference made at the instance of the respondents to the Subordinate Judge
to set up a claim adverse to the interest of the respondents.
The High Court
rightly rejected the contention of the appellant in this behalf. [538D-E, G-H]
(2) Both the High Court as well as the Subordinate Judge awarded the
con1pensation in accordance with the previous decisions which laid down a
formula.
No cogent grounds have been shown to us to interfere with the
concurrent findings in this respect.
[539B-C]
(3) There is no reason to disagree with the High Court judgment regarding
the date on which the interest should run on the amount of compensation.
[539-G]
C!vIL APPELLATE JURISDICTION: Civil Appeal No. 1425 of 1968.
From the Judgment and Decree dated the 5-8-74 of the Madras
High Court in Appeal No. 448 of 1960
A. V. Rangam and Miss A. Subhashini for the Appellant.
K. Jayaram and R. Chandresekhar for Respondent No. 1
E:i:-parte for Respondents 2-8.
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MADJl,AS STATE v. SHANMUGHA MUDALIAR (Khanna, J.)
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The Judgment of the Court was delivered by
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KHANNA, J. This appeal on certificate is by the State of Madras,
now Tamil N adu, against the judgment of Madras High Court affirm-
ing on appeal the award of learned Subordinate judge Salem in
respect of the amou'nt of compensation payable to the respondents for
acquisition of land under the Land Acquisition Act (Act 1 of 1894)
(hereinafter referred to as the Act). The High Court, however,
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directed that the interest on the amount awarded shall run from
November 19, 1951, the date of the award by the Land Acquisition
Officer and not from December 1, 1949 as ordered by the Subordi-
nate Judge.
On July 12, 1949 notification under section 4 of the Act was
issued for the acquisition of 19 acres 45 cents of dry land situated in
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Alegapuram Mitta for the Salem Fair Lands Co-operative Society
Ltd. on December 19, 1950. Alegapuram Mitta was notified under the
Madras Estates Abolition Act (Act 26 of 1948) (hereinafter referred
to as the Abolition Act). A writ petition was filed in the High Court
to challenge that notification.
Further proceedings in pursuance of
the notification were stayed by the High Court by order dated January
1. 1951.
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