COLLECTOR OF SULTANPUR AND ANOTHER vs RAJA JAGDISH PRASAD SAHI

The Supreme Court held that under Rule 8-A of the U.P. Zamindari Abolition and Land Reforms Rules, the Collector is mandated to adjust agricultural income-tax dues against compensation amounts due to the respondent, as specified in Section 6(d) of the U.P. Zamindari Abolition and Land Reforms Act, 1952. The Court clarified that the obligation to adjust is not optional and that the right of the State to recover dues by other means remains unaffected. The appeal against the High Court's decision was dismissed, affirming the mandatory nature of the adjustment process.