GAUDI RAMAMURTHY & ORS. vs THE STATE OF ANDHRA PRADESH & ORS.

The Supreme Court held that under Section 4 of Regulation XXV of 1802, lands exempt from public revenue and those paying only favorable quit rents can be excluded from the assets of the Zamindari at the time of Permanent Settlement. However, if the land grant is subject to personal services and favorable rents, it is presumed to be included in the Zamindari assets. The Court ruled that the land in question, granted for services, was not excluded from the estate under the Madras Estates (Abolition and Conversion into Ryotwari) Act, XXVI of 1948, affirming the High Court's decision against the appellants.