Sri Ourga Malleswara Swamy Vari Devasthanam at Vijayawada (for short 'the Devasthanam') is one of the ancient and most important shrines in the State of Andhra Pradesh. As in the case of any other important religious institutions, the Devasthanam is endowed with vast extent of movable and immovable properties. Two such items are Ac.8.22 cents in KS.No.76 of Mogalrajpuram, Vijayawada Town (first bit) and Ac.5.98 cents in R.S.No.17 of Patamata, Vijayawada Town (second bit), (for short 'the lands’). The lands were under lease in favour of certain individuals. The' provisions of the A.P (Andhra Area) Tenancy Act were being applied to the lands held by religious institutions also, in case they were given on lease.

2. The income from the lands towards lease or maktha was meagre. The Devasthanam was finding it difficult to evict the tenants. At that stage, the petitioner herein, an educational society, stepped in. It appears that the petitioner negotiated and made efforts for eviction of the then tenants with the consent of the Devasthanam and to get the lands leased in its favour.

3. Various aspects relating to the religious institutions were governed by the provisions of the Madras Hindu Religious and Charitable Endowments Act, 1951 (for short 'the 1951 Act.), till it was repealed through A.P. Charitable and Hindu Religious institutions and Endowments Act, 1966 (for short 'the 1966 Act'). According to the relevant provisions of the 1951 Act and the Rules made under that Act, in exercise of power under Section 102 thereof (for short 'the Rules'), permission of the Government was necessary, and certain restrictions were imposed for grant of leases beyond three years. Though the 1951 Act was repeated through the 1966 Act, no corresponding Rules were framed under the 1966 Act, particularly in relation to administration of immovable properties. By operation of sub-section (2) of Section 100 of the 1966 Act, the Rules made under the 1951 Act, to the extent they are not inconsistent, are treated as if they are made under 1966 Act.

4. The petitioner was granted lease over the lands, initially for a period of three years, in the year 1975, for establishment of educational institutions. It appears that, difficulties were found in extending the lease, beyond the period of three years. The Commissioner of Endowments, the 2nd respondent herein, addressed letter dated 27-12-1977 to the Government, the 1st respondent, with a request to exempt the lands from the operation of the Rules. The Government acceded to the request and issued two separate Orders, viz., G.O.Ms.Nos.285 and 286, Revenue (Endowments-1) Department, dated 02-02-1978, in respect of two bits of land. The G.Os provided for grant of lease for a period of 50 years, renewable thereafter. The rent for the first bit of land was fixed at Rs. 7,500/- and for the second bit, it was stipulated at Rs. 6,000/-; per annum. Enhancement of Rs. 1,000/- per year was provided for, after expiry of a span of every ten years.

5. The petitioner states that it has constructed buildings for establishment of degree colleges, etc., in the lands, and that the institutions are admitted to grant-in-aid by the Government.

6. About a decade after the leases commenced, the A.P. State Legislature enacted the A.P. Charitable and Hindu Religious Institutions and Endowments Act, 1987 (for short 'the Act'), in the place of the 1966 Act. Section 82 of the Act brought about a statutory termination of leases, in respect of agricultural lands held by Hindu Religious Institutions. In Samadhi Narayana v. State of Andhra Pradesh (1) 1990 (1) ALT 237 (D.B), a Division Bench of this Court held that sub-sections (1) and (2) of Section 82 of the Act, in so far as it brings about statutory termination of leases are void and violative of Article 14 of the Constitution of India. That judgment became the subject-matter of a Civil Appeal before the Hon'ble Supreme Court, in State of A.P. v. Nallamilli Rami Reddy (2) AIR 2001 SC 3616