S.Nagaraju, vs The State Of A.P
2021 Latest Caselaw 1746 AP

       HON'BLE SRI JUSTICE U. DURGA PRASAD RAO

                    Writ Petition No.6789 of 2021

ORDER:

The petitioners seek a writ of mandamus declaring the action of

respondent Nos.2 to 4 in including the land in Sy.No.59-4 to an extent

of Ac.0.37 cents of Rachanapalli Village, Anatapuramu Mandal and

District in the prohibition list under Section 22-A of the Registration

Act, 1908, as illegal, arbitrary and violation of principles of natural

justice and consequently direct the respondent Nos.2 to 4 to delete the

aforesaid land from the prohibition list.

2. The petitioners' case succinctly thus:

One Y. Janardhan Reddy of Katiganikaluva Village of

Anantapuramu Mandal, purchased an extent of Ac.1-50 cents in

Sy.No.59-1 and an extent of Ac.1-55 cents in Sy.No.59-4 of

Rachanapalli Village of Anatapuramu Mandal and District in the

auction conducted by the Deputy Registrar, District Cooperative

Central Bank Limited, Ananthapuramu vide certificate dated

13.10.2011. Earlier, the owner of the said land who was assignee

obtained loan from the PACS Rachanapalli and committed default in

repaying the same. Therefore, the PACS brought the said land to

auction as per the procedure contemplated under the Andhra Pradesh

Cooperative Societies Act VII of 1964 and sold the said land in public

auction. Thereafter, the said land was sold to various persons and

part of the land was acquired by the Government for National

Highway by paying compensation.

The petitioners purchased an extent of Ac.0.37 cents situated in

Sy.No.59-4 (remaining land after acquisition by the National Highway

Authorities) and accordingly, an Agreement of Sale was entered on

27.02.2021. However, the petitioners came to know that the said land

was included in prohibited properties list under Section 22-A of the

Registration Act, 1908. As a matter of fact earlier, Y. Janardhan

Reddy, the auction purchaser filed Writ Petition No.10139 of 2012 to

declare the action of the registering authority in insisting 'No

Objection Certificate' as illegal, arbitrary and this Court disposed of

the said Writ Petition on 11.04.2012 holding that as the assigned land

was mortgaged and the same was sold in auction conducted by the

Cooperative Society, it lost its character as an assigned land and

became private land. The Court ultimately held that no 'No Objection

Certificate' was required. In the light of above judgment, now the

action of respondent Nos. 2 to 4 placing a part of the said land in

prohibited list is unjust and illegal.

Hence, the writ petition.

3. Heard learned counsel for petitioners Sri S. D. Gowd and

learned Government Pleader for Stamps and Registration representing

the respondents.

4. A perusal of the copy of the certificate of sale dated 13.10.2011

issued by the Deputy Registrar of the District Cooperative Central

Bank Limited, Anantapuramu shows that Y. Janardhana Reddy

purchased an extent of Ac.1.55 cents in Sy. No.59-1 and an extent of

Ac.1-50 in Sy.No.59-4. Then a perusal of the order dated 11.04.2012

in Writ Petition No.10139 of 2012 shows that Y. Janardhana Reddy

filed the said writ petition narrating therein that the original assignee

mortgaged the property with the District Cooperative Central Bank

Limited and loan was not paid. The said Bank, in execution

proceedings, sold the said land in a public auction and he purchased

the same. His grievance was that when he intended to sell the said

property to third parties, the Joint Sub-Registrar, Anantapuramu did

not entertain the Sale Deed and instructed to obtain 'No Objection

Certificate' from revenue authorities. In that context, the High Court

of Andhra Pradesh passed the order as follows:

"It is no doubt true that the lands were assigned at one point of time and that Section 22-A of the Registration Act as amended through A.P. Act 19 of 2007 prohibits registration of documents pertaining to assigned lands. However, the lands were mortgaged in favour of the District Co-operative Central Bank and once they were brought to sale, they lose the character of assigned lands. Such transactions are exempted under Section 6 of the A.P. Assigned Lands (Prohibition of Transfers) Act, 1977. In W.P.No.14750 of 2007, this Court took the view that once an assigned land was brought to sale by a Co-operative Bank, the prohibition contained under Section 22-A of the Registration Act does not apply for them. The same was upheld by a Division Bench of this Court in W.A.No.950 of 2007.

Hence, the Writ Petition is disposed of directing the 4th respondent to receive and process the document that may be presented by the petitioner in accordance with law, without insisting on submission of 'No Objection Certificate' from the revenue authorities"

5. In the light of above history pertaining to the subject property

i.e., an extent of Ac.0.37 cents in Sy.No.59-4, which is part of the

property originally purchased by Y. Janardhana Reddy in the auction,

placing the same in prohibited list is unjust and unwarranted since the

said property lost its character as assigned land long back.

6. Accordingly, this Writ Petition is allowed and respondents are

directed to delete the land in Survey No.59-4 an extent of Ac.0.37

cents of Rachanapalli Village, Anantapuramu Mandal & District from

the prohibited list under Section 22-A of the Registration Act, 1908.

There shall be no order as to costs.

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

stand closed.

_________________________ U.DURGA PRASAD RAO, J 25th March, 2021 krk

HON'BLE SRI JUSTICE U. DURGA PRASAD RAO

Writ Petition No.6789 of 2021

25th March, 2021 krk