STATE OF TAMIL NADU Vs. PADMAVATHIAMMAL

JUDGEMENT

(1.) The question before the Court was what compensation was payable to the landowner whose surplus land was taken over under the relevant ceiling law.

(2.) The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 provides for determining the compensation payable to the original owner of the land for taking over his land declared surplus. Section 50 in Chapter VI having fascicular 'compensation', provides that every person whose right, title or interest in any land is acquired by the Government under Chapter II shall be paid compensation according to the rate specified in Schedule III. It is common ground that the compensation has to be determined according to the formula prescribed in Schedule III.

(3.) Broadly stated, the authority charged with a duty to determine compensation has to take the first step to ascertain a sum equivalent to the net annual income from the land. This annual income determined less land revenue shall be treated as an amount of fair rent.