Anil R. Dave, C.J.

1. 1. This appeal is filed by respondent Nos.1 and 2 in Writ Petition No.14750 of 2007 questioning the order dated 26.7.2007 passed by the learned Single Judge. By virtue of the said order, the writ petition filed by the petitioner has been allowed and it has been directed that the properties purchased by the petitioner shall not be treated as assigned lands and the first respondent (appellant No.1 herein) shall process the documents presented for transfer of title in accordance with law.

2. 2. For the sake of convenience, parties to the litigation have been described as arrayed in the petition.

3. 3. The facts of the case in a nutshell are that the petitioner had purchased the lands bearing Sy.No.137/2 admeasuring Ac.3.76 cents; Sy.No.137/3 admeasuring Ac.1.17 cents, totally admeasuring Ac.6.63 cents situated in Udamalapadu Village, Srikalahasti Mandal, Chittoor District in a public auction conducted by District Co-operative Central Bank, Chittoor (for short, 'the bank'). Originally, the afore-stated lands were assigned in favour of Shri K. Bheemaiah, as per the rules governing grant of assignment of agricultural lands. The said K. Bheemaiah had mortgaged the said lands with the bank as he had borrowed money from the bank. Since he could not repay the loan amount, the mortgaged lands were auctioned by the bank under the provisions of the Andhra Pradesh Co-operative Societies Act, 1964 (for short, 'the Co-operative Societies Act'). The petitioner had participated in the auction and had purchased the afore-stated lands, pursuant to which a sale certificate was also issued in his favour by the Special Category Deputy Registrar-cum-Officer on Special Duty, District Co-operative Central Bank Ltd., Chittoor (the second respondent herein). Thereafter, on an application made by the petitioner, pattadar passbook and title deeds were issued by the Mandal Revenue Officer. Subsequently, when the petitioner wanted to sell the afore-stated lands in favour of third parties, Sub-Registrar, Srikalahasti (appellant No.1 herein) refused to entertain the sale-deed for registration on the ground that the assigned lands cannot be alienated. Thereupon, being aggrieved by the said refusal, the petitioner filed the afore-stated writ petition.

4. 4. For the purpose of examining correctness or otherwise of the decision taken by Sub-Registrar, Srikalahasthi - respondent No.1, it would be necessary to consider the provisions of Sections 5 and 6 of the Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act, 1977 (for short, "the Assigned Lands Act"), which have been reproduced herein below:

5. Prohibition of registration of assigned lands:-Notwithstanding anything in the Registration Act, 1908, on or after the commencement of this Act, no registering officer shall accept for registration any document relating to the transfer of, or the creation of any interest in, any assigned land

included in a list of assigned lands in the district which shall be prepared by the District Collector and furnished to the registering officer, except after obtaining prior permission of the District Collector concerned for such registration.

5. 6. Exemption:- Nothing in this Act shall apply to the assigned lands held on mortgage by the State or Central Government, any local authority, a co operative society, a scheduled bank or such other financial institution owned, controlled or managed by a State Government or the Central Government, as may be notified by the Government, in this behalf.

1. 5. The learned Single Judge considered the provisions of the Assigned Lands Act, particularly Section 6 and held that once the mortgage of assigned land in favour of a co-operative society is exempted, the other consequential steps taken for foreclosure of the same also stand exempted, and that if an assigned land is put to sale in pursuance of a mortgage, it loses its character of assigned land and the exemption available under Section 6 continues t