Citation : 2023 Latest Caselaw 5831 AP
Judgement Date : 6 December, 2023
18 & 19
HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
MAIN CASE No. WP(PIL).Nos.160 & 191 of 2022
PROCEEDINGS SHEET
Sl. DATE OFFICE
ORDER
No NOTE 11. 06.12.2023 Heard Mr. K.S. Murthy, learned Senior
Counsel, appearing for Mr. Ponnada Sree Vyas, learned counsel for the petitioner in WP(PIL).No.160 of 2022 and Mr. T. Venu Gopal, learned counsel for the petitioner in WP(PIL).No.191 of 2022 and Mr. N. Ashwani Kumar, learned counsel for respondent No.12 in WP(PIL).No.160 of 2022.
Learned Government Pleader for Assignment, learned Government Pleader for Registration and Stamps, Mr. K. Madhava Reddy, learned Standing Counsel for Greater Visakhapatnam Municipal Corporation, Mr. V. Surya Kiran Kumar, learned Standing Counsel for Visakhapatnam Metropolitan Region Development Authority, learned Government Pleader for Municipal Administration and learned Government Pleader for Revenue are present.
Mr. Doddala Prudhvi Teja, learned counsel for the applicant in IA.No.1 of 2023 in WP(PIL).No.191 of 2022 is also present.
The controversy in the present PILs is with regard to the usage of the land allotted to a company
WP(PIL).Nos.160 & 191 of 2022
- respondent No.12 in WP(PIL).No.160 of 2022.
The land measuring approximately Ac.12.00 cents situate in Endada Village of Visakhapatnam District was sold to the said respondent No.12 for constructing an old age home and an orphanage.
The allegation is that the said plot of land is being used for purposes other than the one which was the basis for such an allotment. In this regard, the District Collector had in the first round of litigation issued a notice to respondent No.12 which led to the order of cancellation of the sale deed executed in favour of the said respondent. However, this became a subject matter of challenge in an earlier round of litigation when the writ petition filed by respondent No.12 was allowed. In appeal, the judgment and order passed by the learned single Judge was modified to the extent that the issues with regard to whether there could be a clog on a property post the execution of a sale deed was left upon to be decided in appropriate proceedings.
Insofar as the notice issued by the District Collector and the consequent order of cancellation order of allotment are concerned, the Division Bench held that the impugned order dated 18.08.2015 contained reasons for cancellation of allotment which were not reflected in the earlier show cause notice, dated 21.06.2015 and, therefore, set aside
WP(PIL).Nos.160 & 191 of 2022
the impugned order dated 18.08.2015 on the grounds of violation of principles of natural justice. However, liberty was granted to the respondent authorities to take action afresh in accordance with law. It is also apt to mention here that the Division Bench had kept open the issue as to whether the provisions of Government Grants Act, 1895 would prevail over Section 11 of the Transfer of Property Act or not.
Be that as it may, it appears that pursuant to the judgment rendered by the Division Bench, the second show cause notice came to be issued by the District Collector, Visakhapatnam in November, 2022, which has since been responded to by respondent No.12.
It appears that a Government Order bearing No.57 was issued by the Government authorizing the District Collectors to cancel the allotments in cases where the conditions of allotment had been violated.
Mr. K.S. Murthy, learned Senior Counsel, would submit that the delegation of powers by the Government to the District Collector might give rise to a further litigation subsequently on the issue that the Government could not have delegated its decision making power to the District Collector inasmuch as the order of allotment had been made by the Government itself.
WP(PIL).Nos.160 & 191 of 2022
We see some reason in the argument advanced by learned Senior Counsel for the petitioners.
We have been told that the land in question is quite valuable being in the heart of Visakhapatnam District and may run into couple of hundred crores.
Considering the nature of stakes involved, it would be advisable for the Government to take a decision at its own level after considering all the aspects.
Be that as it may, let an appropriate decision be taken based upon the show cause notice issued by the District Collector in November, 2022, and the reply submitted by respondent No.12 thereto, preferably within a period of eight weeks.
It has been brought to our notice that third party interests are being created in the property in question. One of the applicant who seeks impleadment in WP(PIL).No.191 of 2022 is a person who has purchased by an agreement of sale a plot measuring 600 square yards for an amount of Rs.2.95 Crores. The amount already paid to respondent No.12 is Rs.1.5 Crores.
In order to protect the interest of investors and prevent multiplication of litigation, we deem it appropriate that respondent No.12 in WP(PIL).No.160 of 2022 be restrained from creating
WP(PIL).Nos.160 & 191 of 2022
any third party interest in the land or the properties constructed thereupon, till such time as the decision is taken by the Government in that regard.
Any construction raised on the plot in question will be entirely at the risk and cost of respondent No.12 in WP(PIL).No.160 of 2022.
List on 31.01.2024.
DHIRAJ SINGH THAKUR, CJ R. RAGHUNANDAN RAO, J
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