JUDGMENT

KHANNA, J.:—This appeal on certificate is by the State of Madras, now Tamil Nadu, against the judgment of Madras High Court, affirming on appeal the award of learned Subordinate Judge Salem in respect of the amount 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, 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 Subordinate Judge.

2. 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 Aleguapuram Mitta for the Salem Fair Lands Co-operative Society Ltd. On December 19, 1950 Alagapuram 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. The Society for which acquisition was being made deposited in the meantime the probable cost of the land on September 13, 1950. On November 19, 1951 the Land Acquisition Officer announced his award.

3. The respondents, it may be stated, were the Melavaramdaras (landholders) of the land in question. Kudiwaramdars (cultivators) parties, to the proceedings before the Land Acquisition Officer. The Land Acquisition Officer by his award dated 1058 November 19, 1951 awarded compensation to the cultivators at the rate of Rs. 1,500 per acre for part of the land near the road and at the rate of Rs. 1,300 per acre for the rest of the land, Rs. 520,11 As, 1P the capitalised value of the net rental income was held to be the amount payable to the respondents. The Kudivaramdaras were content with the compensation awarded to them, but the respondents who were, as already mentioned above, Melavaramdaras asked for a reference to Court under Section 18 of the Act for claiming enhanced compensation. According to the respondents, they were entitled to one-third of the value of the totality of the interest in the land. According to the respondents, compensation for the total land should be awarded at the rate of Rs. 3,000 per acre. Learned Subordinate Judge held that the respondents were entitled to 50 per cent of the compensation awarded in respect of the kudiwaram interest in the land. The Subordinate Judge in this context relied upon an earlier decision of the Madras High Court wherein it had been held that the rights of Melavaramdars were not confined only to rent from land and that they had other recognised rights and were entitled to compensation for those rights. The respondents were thus held entitled to compensation for their Malvaramdar interest at the rate of Rs. 750 per acre in respect of land near the road and Rupees 650/- per acre in respect of the remaining land. Interest was awarded to the respondents on the compensation amount from December 1, 1949 because, in the opinion of the Subordinate Judge, possession of the land had been taken from that date.

4. On appeal the High Court affirmed the decision of the Subordinate Judge regarding the rate of compensation. The contention advanced on behalf of the appellant that as the land had vested in the Government under the Abolition Act, the respondents were not entitled to compensation under the Land Acquisition Act, was rejected. It was observed that in the land acquisition proceedings the government was estopped from denying the absence of any interest in the claimants whom the Government had made parties to the proceedings. Regarding the date from which interest on the amount of compensation should accrue, the High Court found that there was no material on the record to show that possession of the land had been taken prior to the date of the award by the L