J. Sudharshan Reddy vs Prl. Secy., Rev. Dept. 6 Ors.
2021 Latest Caselaw 1 AP

            THE HON'BLE SRI JUSTICE M. GANGA RAO

               WRIT PETITION No.36858 of 2017

ORDER:-

      This Writ Petition is filed to issue a Writ of Mandamus

declaring the action of the 3rd respondent in including the land, an

extent of Ac.4.74 cents situated in Sy.No.376 of Thollaganganpalli

village, Valluru Mandal, YSR District in the prohibited lands list

furnished under Section 22A(1)(a) of the Registration Act and the

consequential action of the 7th respondent in refusing to entertain

the sale deed for registration stating that the same is included in

the prohibited lands list as assigned land as illegal, arbitrary and

contrary to the law laid down in the case of Sub-Registrar,

Srikalahasti, Chittoor District v. K. Guragaiah reported in 2009(2)

ALD 250 apart from being violative of fundamental and

constitutional rights guaranteed to the petitioner under Articles

14, 19, 21 and 300-A of the Constitution of India and consequently

set aside the prohibited lands list furnished by the 3rd respondent

under Section 22-A(1)(a) of the Registration Act insofar as it relates

to the land, an extent of Ac.4.74 cents in Sy.No.376 of

Thollaganganpalli Village, Valluru Mandal, YSR District.

2. The case of the petitioner is that originally land, an extent of

Ac.4.74 cents situated in Sy.No.376 of Thollaganganpalli village,

Valluru Mandal, was assigned in favour of one Konda Narasimhulu

vide D.K.T.No.51/91 in the year 1982. The said assignee, for his

agricultural purpose, obtained loan by mortgaging the land in

favour of Primary Agricultural Co-operative Society Litd., Valluru,

which is under the control of the Kadapa District Co-operative

Central Bank Ltd., Kadapa. When he failed to repay the loan, the

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bank brought the land for auction through E.P.No.07/2006-07. In

the auction one B. Chandrasekhar was declared as the highest

bidder. Sale certificate was also issued in favour of

Chandrasekhar on 05.07.2006. Thereafter, when Chandrasekhar

intended to alienate the lands and presented the documents for

registration, the 7th respondent issued an endorsement, dated

29.09.2008 stating that the lands were assigned land and refused

to register the document. Aggrieved by the said action,

Chandrasekhar filed W.P.No.22289 of 2008. The writ petition was

allowed by orders dated 25.08.2009. Thereafter, Chandrasekhar

sold the subject land in favour of one Tellakula Rama Chandra Rao

through a sale deed dated 17.08.2009 vide document No.4407 of

2009. Rama Chandra Rao sold Ac.2.74 cents from out of Ac.4.74

cents to the petitioner under a registered sale deed dated

08.03.2010 bearing document No.1047/2010. Subsequently, the

petitioner, retaining an Ac.1.00 cent, sold an extent of Ac.1.00 cent

and Ac.0.74 cents in favour of one Gundre Chandra Kala and

K. Sirija respectively though sale deeds dated 22.11.2010 vide

document Nos.4608 and 4609 of 2010. The petitioner intended to

sell Ac.1.00 cents retained by him in favour of third parties and

went to the 7th respondent for presentation of the document. The

petitioner was informed that the subject land is included as

assigned land in prohibited property list furnished by the 3rd

respondent to the registration department. Assailing the illegal

and arbitrary action of the respondents, this Writ Petition came to

be filed.

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3. Learned counsel for the petitioner submits that the action of

the respondents is contrary to the orders of the Division Bench of

the erstwhile High Court of A.P in Sub Registrar, Srikalahasti,

Chittoor District Vs. K. Guravaiah1 and the orders in

W.P.No.22289 of 2008 filed by the auction purchaser and

contends that the lands which were assigned by the State can be

mortgaged in favour of Primary Agriculture Co-Operative Society,

and if the mortgagor commits default in payment of the loan

amount, the said lands can be sold for recovery of the same, and

that such a sale is valid in law. He contends that once there is a

sale of the land in an execution proceeding in favour of the auction

purchaser, from whom eventually the petitioner purchased the

properties and sale certificate was also issued in favour of the

auction purchaser, thereafter the lands ceased the character of

assigned land and the auction purchaser and the purchasers from

the auction purchaser would get the valid title to the properties.

4. Learned counsel brings to the notice of the Court that while

admitting the writ petition on 17.11.2017, this Court, having

regard to the order dated 25.08.2009 in WA.No.39 of 2008 and

batch, passed interim order directing the 7th respondent to receive

the document presented by the petitioner for the purpose of

registration without reference to the prohibitory land list under

Section 22-A(1)(a) of the Act, 1908 communicated by 3rd

respondent and register the same strictly in accordance with the

provisions of the Indian Stamp Act, 1899 and the Registration Act,

1908, within four weeks from the date of submission of the

2009(2) ALD 250 (DB)

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document by the petitioner. By the said orders, the Registry was

also directed to issue show cause notice to the 3rd respondent to

show cause as to why proceedings of Contempt of Court should not

be initiated against him for including the petitioner's land in the

list of prohibited lands communicated to the 7th respondent inspite

of the decision dated 25.08.2009 in WA.No.39 of 2008 and batch.

Subsequently, suo motu contempt proceedings were initiated vide

C.C.No.2470 of 2017. However, he now prays to dispose of the writ

petition in terms of the judgment in K. Gurvaiah.

5. In K. Guravaiah's case referred supra, this Court held that

when the original assignee mortgaged the land assigned to him in

favour of the Bank or a financial institution or Co-operative Society

under A.P. Co-Operative Societies Act, 1964 and if the money is

not paid, the consequences provided in the Transfer of Property

Act, 1982 would naturally follow; that it is permissible to put the

said land to public auction under the said Act and recover the loan

dues to the financial institution by way of sale; the land loses its

character of assignment and such a sale is valid in law. It is also

held that as per Section 2(1) of the A.P.Assigned Lands (Prohibition

of Transfers) Act, 1977, mortgage in favour of a bank or a Co-

operative Society does not amount to alienation.

6. Following the said decision in K. Guravaiah's case, the Writ

Petition is disposed of directing the 2nd respondent to delete the

petitioner's land referred above from the prohibited property list

issued by the Revenue Authorities under Section 22-A 1(a) of the

Registration Act, 1908 within four weeks from the date of receipt of

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a copy of this order and communicate the same to the 7th

respondent. The petitioner shall submit the sale deed for

registration before the 7th respondent and the same shall be

considered for registration strictly in accordance with the

provisions of Registration Act, 1908 and the Rules made

thereunder and Stamp Act, 1899 by the 7th respondent, without

reference to the prohibited property list maintained under Section

22-A of the Registration Act, 1908. This exercise shall be

completed within a period of two (02) weeks from the date of

submission of the document by the petitioner. No order as to costs.

As a sequel, miscellaneous applications pending, if any, shall

also stand closed.

__________________________ JUSTICE M. GANGA RAO 06.01.2021 ANR/Vjl