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2004 Supreme(AP) 1020

Andhra Pradesh High Court
Judges : B.SUDERSHAN REDDY, K.C.BHANU
State Of A.P. - Appellant
Versus
Bheemunipatnam Co-operative Building Society Limited - Respondent
Decided On : 09-17-04

Headnote:Evidence Act, 1872 - Section 115 - Estoppel - promissory estoppel against state cannot be applied when officer of state acted directly contrary to general instructions issued by Government.

       Held : Plea of promissory estoppel is not available as the doctrine of ultra vires becomes applicable. Promissory Estoppel cannot legitimise an ultra vires ad of any governmental authority.

       Unlawful representations do not create estoppel much less promissory estoppel. Unauthorised assurances by the public authorities are actually worthless and no person relying upon such unauthorized assurances can invoke and rely upon the concept of estoppel.

       The promise made by an official agency, which had no power to fulfill the expectation arising out of such promise, cannot be equated to that of a promissory estoppel. Legal incapacity to fulfill the expectation is considered as an insuperable obstacle and has potentially damaging effects of enforcing such unauthorized representations.

B. SUDERSHAN REDDY, J.

( 1 ) THE dispute in the instant case centres around the proposal to alienate huge extent of about Acs. 400. 00 of land situated at nerellavalasa Village within the Urban agglomeration of Visakhapatnam, one of the fast growing urban agglomerations in the state of Andhra Pradesh.

( 2 ) THE tell-tale facts leading to filing of this writ appeal may have to be noticed: the Bheemunipatnam Co-operative building Society Limited (for short the society ) mainly consisting of Senior I. A. S. , i. P. S. officers and other employees including their near and distant relatives came into existence in the year 1970. It was registered under the provisions of the A. P. Cooperative Societies Act, 1964. It had applied for assignment/alienation of Acs. 400. 00 of government land in Survey No. 49/1 of nerellavalasa Village. The District Collector, visakhapatnam, having received the request of the society very promptly requested the erstwhile Board of Revenue to accord permission to alienate and handover the possession of the said land identified by the society itself at the market value of rs. 250/- per scre. The Board of Revenue expreseed its reservation in the matter as regards the market value of the land and further desired the proposal to be reviewed after obtaining the view from the Vice-Chairman, Visakhapatnam Urban development Authority, Visakhapatnam (for short vuda ).

( 3 ) THE total extent of land in Survey no. 49/1 of Nerellavalasa Village is acs. 1189. 63 cents. It is classified as isukadibba PORAMBOKE. An extent of about Acs. 655. 00 from out of the said land was set apart for a public purpose of making the land available to the Ministry of Defence for its purposes. It appears that the society had opted for northern portion of the land in survey No. 49/1, which is carved out and renumbered as R. S. No. 118. On measurement the actual extent of the land in the northern part was found to be acs. 373. 95 cents only.

( 4 ) THE Flag Officer, Commanding-in-Chief, Eastern Naval Chief, Visakhapatnam, requested the District Collector, visakhapatnam, to earmark the said land also for its purposes.

( 5 ) THE procedure for assignment of the government land in Andhra area is regulated by the A. P. Board Standing orders. Order 24 of the Standing Orders prescribes the procedure for disposal of the land belonging to the State Government for public purposes. The Board of Revenue is empowered to sanction the placing of State land at the disposal of person, an institution or a local body for any bona fide public purpose provided the market value does not exceed Rs. 50. 000/- in the case of local bodies and Rs. 3. 000/- in the case of private bodies, institutions and individuals. In every case of grant of land requiring the sanction of the Board of Revenue or the State government, an application is required to be made to the Collector in the form prescribed. The order further provides that in cases where the previous sanction of the State government is required, the same may have to be obtained and proposals be submitted to the Board of Revenue. The District collector is authorised to make grant provided the value of the land sought to be alienated does not exceed Rs. 3. 000/ -. There is no dispute that the competent authority to accord permission to alienate the land and grant assignment is the State government.

( 6 ) THE District Collector in his anxiety to favour the society through D. O. letter dated 31-8-1979 ordered delivery of advance possession of the land admeasuring acs. 400. 00 to the society "pending finalisation of alienation proceedings". The district Collector is neither competent to sanction the grant nor assignment of any government land whose value exceeds rs. 3. 000/ -. Only in cases of emergency, the authorities competent to sanction grants of any government land may permit entry upon the land, pending issue of formal orders sanctioning the grant. Even such sanctioning authority is required to obtain an undert

























































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