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Judgment
The District Judge is in error in saying that the plaintiff is entitled to compensation u/s 18 of Madras Act IV of 1889. That section has no
application to a case like the present in which the license has been cancelled u/s 27 of the Act. In such case, the licensee is only entitled u/s 16(a)
to the value of the proprietary right in the land, and in calculating such value the value of the land as a site for salt manufacture is not to be taken
into account. The Commissioner is to value the proprietary right at his discretion, and, if the valuation is not accepted, the licensee may resort to the
Court for the determination of the amount.
In the present case the Commissioner fixed Rs. 2, as the value. The licensee does not accept it. The District Munsif is a Court of competent
jurisdiction and has the matter before him in execution of the decree. He should therefore proceed to determine the proper value of the proprietary
right on such evidence as may be adduced before him by either side and direct payment thereof by the defendant.
We modify the order of the District Judge accordingly. Costs in ail Courts will be provided for in the fresh order of the District Munsif.