Marpuri Sashidhar Rao, vs The State Of Andhra Pradesh,
2021 Latest Caselaw 2596 AP

  THE HON'BLE SRI JUSTICE M.SATYANARAYANA MURTHY

                   WRIT PETITON NO.14449 of 2021

ORDER:

This Writ Petition is filed under Article 226 of the

Constitution of India, seeking the following relief:-

"....to issue a Writ of Mandamus, declaring the action of the 2nd Respondent in not taking any steps for deletion of petitioners property in an extent of Ac. 2.00 cents, out of an extent of Ac. 4.26 cents in Survey No 632-1A, 604-1B2, 605-1A of Kollabylu Village and Panchayat Madanapalle Mandal, Chittoor District from the prohibited list by considering properties not come under "Assignment lands" as petitioners purchased the property from the auction purchaser in Co-operative Bank auction as highly illegal, arbitrary and the further action of the respondent No. 4 and 5 in decline to receive and accept the sale deeds presented by the petitioner in respect of above said land by relying on the prohibition list furnished by the 2nd respondent as illegal, arbitrary and violative of article 14, 21, 300A of Constitution of India and violative of law declared in Sub Registrar, Srikalahasthi vs K Guravaiah and another reported in 2009 (3) ALT 85 (DB) and consequently direct the 2nd respondent to delete the aforesaid land from the prohibited list with the further direction to the 4th and 5th respondents to receive admit the sale deed sought to be presented by the petitioners for registration and release the same...."

3. Heard the learned counsel for the petitioner and the

learned Assistant Government Pleader for Registration & Stamps

appearing for the respondents.

4. The case of the petitioner is that originally the land in an extent

of Ac. 1.50 cents in Survey No 632-1A; an extent of Ac. 1.54 cents in

Sy.No. 604-1B2; and an extent of Ac. 1.22 cents in Sy.No. 605-1A in total

Ac. 4.26 cents of Kollabylu Village and Panchayat Madanapalle Mandal,

Chittoor District was assigned to Smt. R.C.Nagaratnamma W/o

Srinivasulu Naidu, who was defaulter to the District Co-operative Central

Bank Ltd., Chittoor and the property brought for sale in public auction

and one Sreerama Uma Rani W/o Sreerama Venkatesh Babu has

purchased the same in public auction by District Co-Operative Central

Bank on 04.04.2006 and issued Sale Certificate in Form-10, dated

02.05.2006 in her favour, who in turn gifted the same to the petitioner

by way of a Gift Settlement Deed dated 15.07.2019, since then the

petitioner has been in possession and enjoyment of the same. The

petitioner intends to sell the property for his financial crisis and

approached the 5th respondent on 07.07.2021 for valuation certificate,

who informed that the above said land notified in the prohibited property

list under Section 22-A(1)(a) of the Registration Act, 1908 and that

registration cannot be permitted, until de-notify the same, which is illegal

and arbitrary. Hence, the petitioner sought for a direction as prayed for.

5. No counter is filed by the respondents.

6. It is the contention of the petitioner is that though there is

a prohibition for alienation of the assigned land as per Section 3 of

A.P. Assigned Land (Prohibition of Transfers) Act, 1977 there is an

exemption under Section 6 of the said Act, it reads as follows:

Sec.6 Exemption : Nothing in this Act shall apply to the

assigned lands held on mortgage by the State or Central

Government, any local authority, a co-operative society, a

scheduled bank or such other financial institution owned,

controlled or managed by a State Government or the Central

Government, as may be notified by the Government in this behalf."

7. Learned counsel for the petitioner while drawing attention of

this court Section 6 of the said Act, placed reliance on a judgment of

erstwhile High Court of A.P at Hyderabad in Sub Registrar,

Srikalahasthi vs. K.Guravaiah and another1 . On the strength of the

principle laid down in the said judgment by Division Bench, he requested

to issue direction.

2009 (3) ALT 85(DB)

8. In any view of the matter when land is mortgaged with

Co-operative Bank, which is the subsidiary of District

Co-operative Central Bank. According to Section 3 (2) of A.P

Assigned Lands (Prohibition of Transfers) Act, 1977 (for short Act

IX of 1977), no landless poor person shall transfer any assigned

land, and no person shall acquire any assigned land, either by

purchase, gift, lease, mortgage, exchange or otherwise. Clause 3

further says that any transfer made in contravention of the

provision of sub-section (1) of sub-section (2) or subsection (2-A)

shall be deemed to be null and void., Clause 4 says that The

Provisions of this section shall apply to any transaction of the

nature referred to in sub-section (2) in execution of a decree or

order of a Civil Court or of any award or order of any other authority.

When the property was sold in execution of decree by

the Cooperative Society or Bank, the property is exempted from

application of provisions of Act IX of 1977. Therefore, sale of

assigned land by Registrar of Cooperative Societies is saved and

this view is fortified by the judgment of Division Bench of erstwhile

High Court of A.P at Hyderabad in The Sub-Registrar v. K.

Guravaiah's case (referred supra), in para No.12 of the judgment

the Court discussed about validity of such sale and finally

concluded that when bid was knocked down in favour of petitioner

is confirmed and sale deed has been executed by the concerned

Co-operative Bank, the sale is valid. When once the property was

mortgaged to the Cooperative Society, which is not prohibited, sold

in the auction for realization of debt due under the award, such

transaction is exempted from application of provisions of Act IX of

1977. Hence, I find that transfer in favour of petitioner cannot be

said to be in violation of provisions of Act IX of 1977.

9. In view of the facts and circumstances of this case, the

respondents No. 4 and 5 are directed to receive and register the

Sale deed to be presented by the petitioner in respect of the above

subject property in accordance with law, notwithstanding the

notification of the property under Section 22-A (1)(a) of Registration

Act.

10. With the above direction, the writ petition is disposed of.

There shall be no costs

As a sequel, Interlocutory Applications pending, if any, in this Writ

Petition, shall stand closed.

_________________________________________ JUSTICE M. SATYANARAYANA MURTHY

Date: 26-07-2021

KK

THE HON'BLE SRI JUSTICE M.SATYANARAYANA MURTHY

WRIT PETITON NO.14449 of 2021

Date: 26-07-2021

KK