N. ANANDA REDDY Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The petitioner - N. Ananda Reddy filed this writ petition is filed under Article 226 of the Constitution of India, questioning the action of Respondent No.3 in issuing non-statutory proceedings vide "Order" in Rc.No.K/1389/2019 dated 11.05.2021 instead of an "Award" under Section 23 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, as illegal, arbitrary, violative of principles of natural justice and not in consonance with the provisions of the said statute as violative of Articles 14, 19(1)(g), 21 and 300-A of the Constitution of India and consequently direct Respondent Nos. 1 to 4 to pay compensation and all statutory benefits to the petitioner by strictly adhering to the provisions of the said statute in respect of an extent of Ac.1-69 cts of land in Sy.No303/2 of Gollapuram Village, Hindupur Mandal, Ananthapuramu District.

(2.) The petitioner is the absolute owner of a total extent of Ac.5.05 cts of agricultural land, situated in Sy.No.303/2 of Gollapuram Village, Hindupur Mandal, Ananthapuramu District. The petitioner purchased the said land from one K.H. Muniappa under a registered sale deed bearing Document No.3037/2011 dated 14.03.2011. His vendor, K.H. Muniappa purchased the aforesaid extent of land, in an auction conducted by the Deputy Registrar/Officer on Special Duty, Ananthapuramu District Cooperative Central Bank Ltd, to recover the dues to the said bank, in EP No.734/95-96, and a certificate of sale dated 03.07.1996 (Regd. Doc. No.734/1996) was issued in favour of petitioner's vendor, K.H.Muniappa.

(3.) The said land was originally "assigned land" and had mortgaged by the then owner, with the aforesaid bank, as security for payment of loan obtained by him. It is permissible in law for assigned land to be mortgaged in favour of such banks/financial institutions and it is also permissible to purchase such mortgaged land, when the same is sold to recover the dues to such banks/financial institutions. A Division Bench of the High Court of Andhra Pradesh at Hyderabad in "Sub Registrar, Srikalahasthi, Chittoor District and another vs K. Guruvaiah1", held that the bar contained in Section 5 of the A.P. Assigned Land (Prohibition of Transfers) Act, 1977, does not apply in respect of assigned land which are sold for recovery of cooperative loans. This aspect was taken note of again by the High Court, while disposing of W.P.No.29731 of 2010, by order, dated 29.11.2010. The said Writ Petition, was filed by petitioner's vendor, K.H. Muniappa, when Governmental authorities were treating the subject land (an extent of Ac.5.07 cts in Sy.No.303/2 of Gollapuram Village) as assigned land, consequently resulting in non-acceptance of documents presented for registration. Pursuant to the order in W.P.No.29731 of 2010, the aforementioned sale deed, dated 14.03.2011 was registered in favour of the petitioner, the said document having been executed by K.H.Muniappa, his vendor, who was the Writ Petitioner in W.P.No.29731 of 2010. 2009 (2) ALD 250 (DB) Pursuant to the execution of aforesaid registered document dated 14.03.2011, in favour of the petitioner, he was in possession of the subject land; his name was mutated in the revenue records and obtained Pattadar Pass Book, vide Khata No. 1161. The aforementioned transactions, on behalf of the bank and thereafter by petitioner's vendor, are also reflected in the statement of encumbrance of property issued by Registration and Stamps Department.