STATE OF JAMMU & KASHMIR vs SANAULLAH MIR

The Supreme Court held that the land acquisition proceedings initiated under the Jammu and Kashmir State Land Acquisition Act, 1934, were a nullity as the land had been resumed by the State in 1894, and no compensation was due to the respondent's ancestor at that time. The Court clarified that the respondent's ancestor had lost all rights to the land, which had become State land, and thus the subsequent determination of compensation based on market value was ultra vires. The appeal was allowed, affirming that the State Exchequer could not be held liable for the illegal actions of its officers.