Allowed

T. Jaya Krishna Reddy v. The Andhra Pradesh State Financial Corporation

Andhra Pradesh HC2 Nov 2021WP/6470/2021

Case brief

AI extract

What is this about?

The Court held that a Government Order exempting lands held on mortgage by AP SFC from the Assigned Lands Prohibition Act barred the authorities from withholding registration. Petitioner, the highest bidder, was directed to register the property.

What did the court decide?

Respondent No.1 to take steps for property registration in petitioner's favor; Respondent No.3 to act in accordance with the Government Order.

T. Jaya Krishna Reddy Vs The Andhra Pradesh State… — Property and Title | Andhra Pradesh HC (2021)

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THE HONOURABLE SRI JUSTICE C.PRAVEEN KUMAR

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WRIT PETITION No.6470 of 2021

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ORDER:-

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Heard Sri V.Venkata Mayur, learned counsel for the petitioner, Sri G.R.Sudhakar, learned Standing Counsel for A.P. State Financial Corporation appearing for respondent No.1, and the learned Government Pleader for Revenue appearing for respondent Nos.2 and 3.

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The present Writ Petition came to be filed under Article 226 of the Constitution of India seeking the following relief:-

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“……. to issue a writ or order/s more particularly one in the nature of Writ of Mandamus declaring the inaction of respondent No.1 in executing the sale deed in favour of the petitioner in respect of item No.4, pursuance of the auction Notice dt.03.12.1996, as being illegal, arbitrary and violative of Art.21 and 300-A of the Constitution of India and consequently direct the respondents to execute the sale deed in favour of the petitioner in respect of item No.4 of the auction notice dt.03.12.1996 and be pleased to pass ……”

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The averments made in the affidavit filed in support of the writ petition show that in the auction conducted by respondent No.1, the petitioner stood as a highest bidder. He is said to have paid the entire amount of Rs.60,000/- as per the bid. The same was received by respondent No.1 on 4.3.1997 and issued a receipt vide No.35222. Thereafter, respondent No.1 took possession of the property under a cover of panchanama dated 17.3.1997. Though the petitioner is the highest bidder in the auction and paid the entire bid amount, the property is not registered in the name of the petitioner. It is said that the petitioner met with an accident and could not pursue with respondent No.1 for execution of the sale deed. After recovery, he claims to have taken steps by pursuing

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with respondent No.1 to register the property in his name but when respondent No.1 intended to register the property in the name of the petitioner, respondent No.3 raised an objection stating that the subject property is an assigned land and as such, cannot register the same. Thereafter, the petitioner started addressing letters to the respondents requesting to register the subject land but their inaction led to filing of the present writ petition.

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A counter came to be filed by respondent No.1 Corporation. A perusal of the averments made in the counter would show that respondent No.1 Corporation has sanctioned a Loan Account bearing No.652221013 to one M/s.Srinivasa Modern Rice Mill located at Sy.No.304/2, Kantepalli Village, Venkatachalam Mandal, S.P.S.R. Nellore District. As the promoter of the said rice mill became a defaulter, the assets of the unit located in Sy.No.220/2 of Kantepalli Village of Venkatachalam Mandal admeasuring Ac.0.50 cents came to be auctioned under Section 29 of the State Financial Corporations Act. It is admitted that the petitioner was the highest bidder in the said auction and the properties so auctioned were handed over to the purchaser vide panchanama dated 17.3.1997. It is stated that since the petitioner did not turn up for registration of the land due to some personal problems, they could not register the land. It is also admitted in the counter that when the process of registration is in progress, the Sub-Registrar, Bujabuja, Nellore raised an objection with regard to registration on the ground that the said land is an assigned land. The Corporation is said to have addressed a letter, dated 12.10.2012, to the Mandal Revenue Officer, Venkatachalam to issue No Objection Certificate, enclosing a copy of G.O.Ms.No.1065, REVENUE (ASSN.POT) DEPARTMENT, dated

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14.10.2009, which clearly exempts the assigned lands held on mortgage by A.P. State Financial Corporation from the provisions of the said Act. It is said that in spite of the G.O. being placed before the Sub-Registrar, Nellore, the authority is not taking any steps for registering the property in favour of the petitioner. It is further stated that in that process, the property is now listed under the prohibitory list. On coming to know about the same, respondent No.1 has informed the concerned Tahsildar, Sub-Registrar and the Revenue Divisional Officer to issue N.O.C. by duly explaining the reasons but till date, no N.O.C. is issued.

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Learned Government Pleader for Revenue, on instructions, submits that the G.O., which is relied upon by respondent No.1 Corporation, is still in force and the same is not superceded by any G.O. However, he submits that no explanation is forthcoming from the petitioner as to the abnormal delay in getting the document registered.

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The entire issue now revolves around the G.O. issued by the Government vide G.O.Ms.No.1065, REVENUE (ASSN.POT) DEPARTMENT, dated 14.10.2009, which reads as under:-

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“………The Government after careful examination of the matter, decided to notify the “Andhra Pradesh State Financial Corporation” as Financial Institution as contemplated under Section 6 of “The Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act, 1977”.

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Accordingly, the following Notification shall be published in the Extraordinary issue of the Andhra Pradesh Gazette, dated 19-10-2009.

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NOTIFICATION

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In exercise of the powers conferred under section 6 of the Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act 1977, (Andhra Pradesh Act 9 of 1977), the Government of Andhra Pradesh hereby exempts the assigned lands held on

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mortgage by Andhra Pradesh State Financial Corporation from the provisions of the said Act.”

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A reading of the above G.O. clearly indicates that the assigned lands held on mortgage by Andhra Pradesh State Financial Corporation are exempted from the provisions of Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act 1977.

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In view of the above G.O., the action of the authority in not issuing N.O.C. and the action of respondent No.3 in not registering the document would be illegal and improper. Having regard to the above, inclusion of the property in the prohibitory list, does not debar the authorities in proceeding further in view of the G.O. referred to above.

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Having regard to the above, respondent No.1 shall take steps for getting the property registered in favour of the petitioner and respondent No.3 shall take steps in terms of the above G.O. and act in accordance with law as early as possible pursuant to submission of documents for registration.

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