Kudaravalli Bhaskara Rao, vs The State Of Andhra Pradesh,
2021 Latest Caselaw 271 AP

            THE HON'BLE SRI JUSTICE M. GANGA RAO

                WRIT PETITION No.1511 OF 2021

ORDER:-

      This Writ Petition is filed to issue a Writ of Mandamus

declaring the action of the 3rd respondent in not entertaining any

deed of conveyance for registration presented by the petitioner in

respect of his land admeasuring Ac.4.58 cents situated in

Sy.No.606 of Tadikalapudi Village, Kamavarapukota Mandal, West

Godavari District and insisting him to secure NOC from the 4th

respondent as illegal, arbitrary and violative of Articles 14, 21 and

300-A of the Constitution of India and consequently direct the 3rd

respondent to register deed of conveyance in respect of the above

land without insisting upon NOC from the 4th respondent.

2. The case of the petitioner is that the petitioner inherited the

land an extent of Ac.4.58 cents situated in Sy.No.606 of

Tadikalapudi Village, Kamavarapukota Mandal, West Godavari

District from his ancestors. Thereafter, the petitioner obtained loan

from the District Co-operative Central Bank, Eluru by mortgaging

the land. As the loan amounts were not repaid, the bank filed

claim before Competent Authority i.e., Special Cadre Deputy

Registrar/ on special duty, the District Cooperative Central Bank

Limited, Eluru who passed recovery Certificate dated 13.12.1993

under Section 71 of Andhra Pradesh Cooperative Societies Act,

1964. Even thereafter, the Judgment Debtor did not pay certificate

amount and the bank filed Execution Petition No.213 of 1997. In

the Execution Petition, the land was brought for sale in the public

auction. In the public auction, one Bellamkonda Rama Krishna

Rao purchased the land and he was accordingly issued sale

certificate dated 31.01.1997.The said Bellamkonda Rama Krishna

Rao sold the said property to one Bhimavarapu Surya

Satyanarayana for valid consideration under Registered sale deed

dated 20.10.2003 vide Document No.939 of 2003. The said

Bhimavarapu Surya Satyanarayana sold out the same to one

Vadapalli Venkata Subba Raju, under registered sale deed dated

01.05.2013 vide document No.1131 of 2013 for valid

consideration. Thereafter, when Vadapalli Venkata Subba Raju

intended to alienate the land and presented the document for

registration, the 3rd respondent refused to register the documents

stating that the land was assigned land. Aggrieved by the said

action, Vadapalli Venkata Subba Raju filed W.P.No.7567 of 2013

before the then High Court of Andhra Pradesh. The writ petition

was disposed of in view of the judgment of the Division Bench of

the then High Court of AP in Sub-Registrar, Srikalahasti and

another v. K. Guravaiah and another [2009(2) ALD 250(DB)] and

the 3rd respondent was directed to receive and process the

documents without reference to the ground that the land was

originally assigned lands. Thereafter, the petitioner purchased the

property from Vadapalli Venkata Subba Raju under registered sale

deed dated 01.05.2013 vide document No.1131 of 2013. Now, for

the personal necessities of the petitioner, he intended to sell the

land. But the 3rd respondent is again refusing to receive and

register the documents on the ground that the said land is

assigned land. Assailing the illegal and arbitrary action of the

respondents, this Writ Petition came to be filed.

3. Heard learned counsel for petitioner and learned

Government Pleader appearing for the respondents. Both the

counsel agreed to advance the arguments in the Writ Petition at

the admission stage as the issue involved in this Writ Petition is

squarely covered by the earlier order of this court.

4. Ms. N. Niyatha, 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 contends that the land which was 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 land can be sold for recovery of the same,

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

is a sale of the land in an execution proceeding in favour of the

auction purchaser, from whom 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.

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; and such a sale is

2009(2) ALD 250 (DB)

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 with a direction to the respondents 2 & 3 to

receive the documents presented by the petitioner in respect of the

land admeasuring Ac.4.58 cents situated in Sy.No.606 of

Tadikalapudi Village, Kamavarapukota Mandal, West Godavari

District, process the same for registration, register it, if it is

otherwise in accordance with the provisions of the Registration Act

and the Rules made thereunder and release the same to the

petitioner as per law. The above exercise shall be completed within

a period of two (02) weeks from the date of submission of the

documents by the petitioner. No order as to costs.

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

also stand closed.

__________________________ JUSTICE M. GANGA RAO 21.01.2021 KLPD

THE HON'BLE SRI JUSTICE M.GANGA RAO

Writ Petition No.1511 of 2021

21-01-2021

KLPD