R V M NEELADRI RAO Vs. BOARD OF REVENUE
LAWS(SC)-1969-9-15
SUPREME COURT OF INDIA (FROM: ANDHRA PRADESH)
Decided on September 23,1969

R V M Neeladri Rao Appellant
VERSUS
BOARD OF REVENUE Respondents

JUDGEMENT

A.N. Grover, J. - (1.) This is an appeal by certificate from a judgment of the Andhra Pradesh High Court given in a petition filed under Article 226 of the Constitution by the appellants.
(2.) The facts may be stated. The previous Maharajah of the impartible estate of Pithapuram in East Godavari District granted a lease on June 22, 1887 in favour of his third wife late Rani Subbayyamma Bahadur in respect of lands in various villages covering an area of acres 2669.65 cents. The Rani executed a will on November 8, 1914 bequeathing all her property including the lease-hold rights to the first appellant and on her death he succeeded to her estate. On December 10, 1956 the first appellant transferred his lease-hold rights in acres 2519.63 cents to the second appellant and reserved to himself the rights in and over the remaining area of acres 150.52 cents. The third appellant is an assignee from the second appellant.
(3.) On the enactment of the Madras Estates (Abolition & Conversion into Ryotwari) Act, (Act XXVI of 1948), hereinafter called the Act, the title of which was changed to the Andhra Pradesh (Andhra Area) Estates (Abolition and Conversion into Ryotwari) Act, 1948, XXVI of 1948, the Pithapuram Estate was notified and abolished with effect from September 7, 1949. The lands in question were taken over by the Government under the provisions of the Act and the Manager who had been appointed ordered that the rent should be collected direct from the tenants in possession of the lease-hold ands under Section 55(1) of the Act from the fasli year 1357 onwards on the reduced rates notified under the Madras Estates Land (Reduction of Rent) Act later called Andhra Pradesh (Andhra Area) Estates Land (Reduction of Rent) Act, Act XXX of 1947. The first appellant filed a petition before the Estates Abolition Tribunal Vizianagram for payment of the proportionate share of compensation out of compensation payable for the estate of Pithapuram. That petition was opposed by the Government and the principal land holder, according to whom, the claim of the first appellant was governed by Section 20 of the Act. This objection was upheld by the Tribunal. On January 8, 1959 the High Court confirmed the order of the Tribunal in appeal holding that the first appellants rights were covered by Section 20 of the Act. In March 1960 the appellants filed a petition under Article 226 of the Constitution praying for various reliefs. On September 9, 1960 the Government decided that as the lease was covered by Section 20 of the Act the Board of Revenue be asked to terminate the same and to pay all the amounts collected as also the compensation payable under Section 20 to the appellants. On September 17, 1960 the Board of Revenue issued a notice to the appellants calling upon them to show cause as to why the lease-hold rights in respect of acres 2669.65 cents should not be terminated. The appellants sent a reply on October 17, 1960 representing that they had no objection to the termination of the lease provided the Government paid compensation to the appellants together with all the amounts so far collected by the Government from the lease-hold lands without deducting any collection charges together with interest accruing thereon till the date of the payment. On November 17, 1960 the Board formally terminated the lease and informed the appellants that compensation and all the amounts collected from the lease-hold lands would be paid to them after deducting cist at 4 annas per acre and cesses etc. but that no interest would be paid on the amounts collected by the Government and further that the Government was also entitled to deduct the collection charges. On January 25, 1961 the Board made an order directing that the appellants should be paid a sum of Rs. 24,949.20 which was stated to be the net of collection made by the Government on the lease-hold lands after deducting the cist at 4 annas per acre, cesses at 50% of the total cesses payable and collection charges at 10% of the gross revenue collected. The Board further observed that the actual extent of the lease-hold lands came only to acres 2277.82 cents after the survey of which the portion transferred by the first appellant to the second appellant came to acres 2025.91 cents. The amounts sanctioned by the Board represented the amounts collected on account of an area of acres 2025.91 cents. The appellants raised objections to the extent of the land as also the amount of collections determined by the Board. On October 23, 1961 the Board determined that a sum of Rs. 44,351.80 should be paid to the second appellant towards compensation payable under Section 20 of the Act. The payment, however, which was made was not for that amount and a sum of Rs. 4,000/- was deducted on the plea that some excess collection had been made by the lessee prior to the notified date. Ultimately the second appellant was paid out of these amounts a sum of Rs. 1,499.16. It was held that with regard to the extent of acres 150.52 cents on which the first appellant claimed compensation this area belonged to the Government and was not part of the estate. The appellants raised various objections but without success.;


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