STATE OF U.P. AND OTHERS vs SRI NARAIN

The Supreme Court held that neither Section 6(d) of the U.P. Zamindari Abolition & Land Reforms Act, 1950 nor Rule 8A allows for the acceptance of Zamindari Abolition Compensation Bonds as payment for agricultural income tax dues. The Court clarified that once compensation is paid in cash or Bonds, it ceases to be payable, and the negotiability of the Bonds does not obligate the government to accept them as legal tender. The High Court's directive to accept the Bonds was thus overturned.