DURGI DEVI & ORS. vs STATE OF U.P.

The Supreme Court addressed the interpretation of Sections 39(1)(e)(i) and 44 of the U.P. Zamindari Abolition and Land Reforms Act, 1950, regarding the assessment of compensation for vested forests. The Court upheld the High Court's finding that the Compensation Officer erred by not appraising the annual yield of the forests and incorrectly using a 35-year period for income calculation instead of the appropriate 20 years. The Court confirmed that the annual yield must be considered on the date of vesting, leading to a revised compensation amount for the intermediary.