( 1 ) THE Petitioner, M/s Canara Bank Staff Cooperative Building society Ltd. , is seeking a writ of Mandamus directing the respondent, the government of Andhra Pradesh represented by its Secretary, Department of revenue, to grant exemption under Section 20 (1) (a) of the Urban Land (Ceiling and Regulation) Act, 1976 (herein after referred to as the ceiling act ; to the petitionersociety in respect of two extents of land in Vijayawada and a consequential declaration that the orders of the respondent dt. 17-6- 83 and 18-6-83 rejecting the request of the petitioner for exemption from the provisions of the aforesaid Act, are arbitrary and illegal.

( 2 ) THE petitioner-society consists of 16 members, all employees of the Canara Bank. The society purchased two extents of Urban Land 2,252 sq. metres in R. S. No. 17/1 of Vidhayadharapuram, Vijayawada from one challapalli Sunderamma and 5,012 Sq. metres in RS. No. 17/1a from m. V. J. K. Ramamohana rao, in Vijayawada. As the two venders were in possession of land in excess of the ceiling limit prescribed under the Urban land Ceiling Act. no registration could be effected, but only agreements of sale were obtained and the petitioner was inducted into possession. After complying with the necessary formalities for seeking exemption under Section 20 (1) (a) of the Act as required under G. O Ms. No. 136 dt. 28-1-81 the petitioner made an application to the Government on 15-1-82. The Special officer and Competent Authority under the Urban Land Ceiling Act had recommended for granting of exemption, by his proceedings in CC. No. 920/76 dt. 14-10-82 and the Commissioner of Land Reforms and Urban Land ceiling, by his proceedings dt. 22-11-82 also recommended to the Government that the request for exemption may be granted. The recommendations of the two authorities were forwarded to the Government in November, 1982. But no action was taken. As a last resort, the petitionersociety made a representation to the Chief Minister on 28-4-1983, but to no avail. The members of the Society obtained loans from the Canara Bank for construction of houses and in respect of such loans the rate of interest was 3% if the amount sanctioned was utilised within six months, otherwise the interest rate was 6%. As a result of the inaction of the Government in not passing the orders on the application made by the Society, the members are subjected to the hardship of paying interest at 6%. This land was originally notified for acquisition under the Land Acquisition Act by the Collector, Krishna at machilipatnam was denotified on 19-8-82 in his proceedings R. Dis. No. 7101/81 subject to the Condtion that the Society shall utilise the land for construction of the houses in accordance with the Master plan of Amara wathi Seema Urban Development Authority, Vijayawada. The Society also paid a fee of Rs. 4,530/- to the Municipal Corporation, Vijayawada, for conversion of the land for non-agricultural purpose, it also deposited a sum of Rs. 27,180/- towards cost of laying roads, providing drainage etc. , in order to obtain sanction for the lay out. The Amarawathi Seema Urban Development authority also collected a sum of Rs. 4,531/- towards layout charges from the Society. This writ petition was filed on 23-5-83 for a direction to the Government to grant exemption as per the recommendations of the special officer Commissioner of Land Revenue. On 24-5-83 an interim direction was granted by my learned brother Seetharam Reddy, J. directing the respondent to dispose of the application of the petitionersociety within two weeks from the date of receipt of the order, thareafter the Government made two orders one on 17-6-83 and the other on 18-6-83 in respect of the two extents of land, rejecting the petitioner s request for exemption. The petitioner thereafter filed an application for amending the prayer in the writ petition seeking quashing of the aforesaid two orders and the prayer was accordingly granted by this Court o