( 1 ) THE sole defendant in O S. No. 18 of 1981 on the file of the Subordinate judge, Kothagudem is the appellant. The plaintiff Pullam Raju purchased a site in Chatakonda under a register sale deed Ex. A-l dated 20-10-1976 and constructed a house after obtaining permission from the concerned authorities and leased it out to the defendant on a monthly rent of Rs. 100/- on 2-7-1978. The building is situate in an agency tract in telangana area. As the defendant committed default in payment of rent, the plaintiff terminated the lease on 7-12-1978 and filed a suit for recovery of possession after evicting the tenant. The defendant resisted the suit denying all the allegations made in the plaint. He set up title in himself and denied the relationship of land-lord and tenant. He stated that the sale in favour of the plaintiff and the lease in favour of the defendant are hit by the provisions of the A. P. Scheduled Areas Land Transfer Regulation, 1959 (hereinafter referred to as the regulation ). The trial court, as well as the appellate court, found that the plaintiff is the owner of the house; that the defendant has no title and that the defendant is a tenant of the plaintiff. On these findings the courts below decreed the suit and ordered eviction of the defendant. The defendant has now come up in second appeal.

( 2 ) THIS appeal came up for hearing before the learned single Judgein the first instance. The learned Judge observed that the expression immovable property used in Section 3 of the Regulation must be confined only to land and not to a building, and referred the case to a Division Bench as the question involved is of great importance.

( 3 ) NOW two questions arise for consideration viz. 1. Whether the expression immovable property mentioned in sec. 3 of the Regulation should be confined only to the land and not to every immovable property? 2. Whether a lessee can challenge the title of the owner?

( 4 ) THE Scheduled Areas Land Transfer Regulation came into forcein 1959 and it was made applicable to the Telangana Area with effect from 1-12-1963. Section 3 of the Regulation reads as follows : 3. Transfer of Immovable property by a member of a Scheduled tribe : (1) (a) Notwithstanding anything contained in any enactment, rule or law in force in the Agency tracts, any transfer of immovable property situated in the Agency tracts by a person, whether or not such person is a member of a Scheduled Tribe, shall be absolutely null and void, unless such transfer is made in favour of person, who is a member of a Scheduled Tribe or a society registered or deemed to be registered under the Andhra Pradesh Co-operative Societies Act, 1964 (Act 7 of 1964) which is composed solely of members of the scheduled Tribes. (b) Until the contrary is proved, any immovable property situated in the Agency tracts and in the possession of a person who is not a member of Scheduled Tribe, shall be presumed to have been acquired by such person or his predecessor in possession through a transfer made to him by a member of a Scheduled Tribe. (c) Where a person intending to sell his land is not able to effect such sale, by reason of the fact that no, member of a Scheduled Tribe is willing to purchase the land or is willing to purchase the land on the terms offered by such person, then such person may apply to the agent, the Agency Divisional Officer or any other Divisional Officer or any other prescribed officer for the acquisition of such land by the state Government, and the Agent, Agency Divisional Officer or the prescribed officer, as the case may be, may by order, take over such land on payment of compensation in accordance with the principles specified in Section 10 the Andhra Pradesh Ceiling on Agricultural holdings Act, 1961 (Act Xof 1961), and such land shall thereupon vest in the State Government free from all encumbrances and shall be disposed of in favour of members of the Scheduled Tribes or a society registered or deemed to b