SPECIAL LAND ACQUISITION & REHABILITATION OFFICER, SAGAR vs M. S. SESHAGIRI RAO & ANR.

The Supreme Court held that under the Land Acquisition Act, the Government of Mysore could not exercise the option to reclaim land without compensation after acquiring it through statutory authority under Section 17. The Court ruled that the grantees were entitled to compensation for the land, despite the condition in the grant that required surrender without compensation. However, the compensation must reflect the market value of the interest in the land, taking into account the restrictions imposed by the grant. The judgment followed the precedent set in Collector of Bombay v. Nusserwanji Rattanji Mistri & Ors. [1955] S.C.R. 1311.