M R APPA RAO Vs. DIRECTOR OF SETTLEMENTS

JUDGEMENT

(1.) Petitioners represent the erstwhile Vuyyur Zamin Estate I and III and Meduru Estate respectively. The erstwhile State Government of Madras took over Vuyyur Sub-Division Nos. 1 &3 and Meduru Zamin Estates on 7-9-1950 under the provisions of the Estates Abolition Act, 1948, pursuant to notification No. 5426, dt. 11-8-1950. By Order dated : 20-6-1961, the competent authority fixed the final compensation due for the estate. Payments were effected pursuant to the composite notification. The 2nd petitioner filed a representation stating that Meduru was a separate Zamin estate and could not have been included in the notification on the assumption that it was part of Vuyyur Zamin Estate. Government accepted the submission, and issued G.O.Ms.No. 1693, Revenue, dt. 10.10.1961 correcting the notification dt. 11.8.1950, so as to notify Meduru as a separate Zamin estate under Act 26 of 1948. Thereafter, the Director of Survey and Settlements redetermined the compensation in respect of Meduru Zamin estate in his proceedings dt. 21.11.1964. Such re-determination was made in respect of Vuyyur Zamin estate in proceedings dt. 5.4.1966. The State deposited only the balance amount due after adjusting the amounts which had been deposited earlier pursuant to the composite notification. Petitioners filed representations objecting to such adjustment. Government then issued G.O.Ms.No. 645 Revenue, dt. 28.5.1966 directing payment of all amounts in respect of the two estates and also recovery of the amounts already paid pursuant to the composite notification, from the parties concerned, with 3% interest. The relevant directions contained in that order were-(1) the composite notification of 1950 being invalid, the Government ought to have given back the composite estate to the two land holders, taking back the interim payments and final compensation received by them. (2) Pursuant to the valid notification of 1961, the State should have made deposit of advance compensation, interim payments and paid final compensation in favour of the two landholders, as if the 1950 notification had not been made and no payments at all had been effected pursuant thereto. These two processes of payment and recovery could be combined. The final determination made pursuant to the composite notification had to be ignored and fresh proceedings had to be finalised in respect of Meduru Zamin Estate. (3) The two landholders were entitled to interim payments till such fresh final determination was made in respect of the two estates; and (4) Any short fall in the interim payments had to be made good.

(2.) On the basis of the above principles, Government directed the Board of Revenue, to direct the Director of settlements to work out afresh the amounts payable to the landholder of Meduru, notwithstanding that it may involve additional financial commitments to Government. The Board of Revenue was also required to order the Director to recover the amounts due from the landholder of Meduru pursuant to the composite notification with 3% interest per annum, since the amounts so drawn could not be treated as valid payments.

(3.) Pursuant to the above directions, the Director of Survey and Settle- ments in his proceedings Ref. No.C.1/18033/66 dt. 29.6.66, recomputed the amounts due to the landholders and also worked out the amount to be recovered from Vuyyur and Meduru Zamin estates. Government passed G.O.Ms.No. 1155, Revenue dt. 4.10.1966 providing additional funds for payment of interim compensation and interest. Petitioners claim that the above order indicated acceptance of the recommendations of the Director in his proceedings dt. 29.6.1966.