ACHUTANANDA PUROHIT AND ORS. vs THE STATE OF ORISSA

The Supreme Court held that under the Orissa Estates Abolition Act, 1951, the calculation of compensation must adhere to the statutory provisions, specifically Sections 26-27, and that interest should be awarded at the statutory rate of 2.5% rather than the claimed 12%. The Court emphasized that the socio-economic context of agrarian reforms, as outlined in Articles 31A and 31B of the Constitution, justifies the extinguishment of feudal privileges and the unique approach to compensation. The appeals were dismissed, affirming the lower courts' decisions regarding the compensation calculations and the authority of the Compensation Officer.