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2014 Supreme(AP) 802

HIGH COURT OF ANDHRA PRADESH
C.V. NAGARJUNA REDDY, J.
D.Koti Reddy - Applicant
Versus
M/s. Auriferous Aqua Farms Ltd.,(In Liquidation), represented by The Official Liquidator,High Court of A.P., Hyderabad and others - Respondents
COMPANY APPLICATION No.1528 of 2011
Decided On : 28-7-2014

Advocates Appeared:
Counsel for applicant : Sri P. Roy Reddy
Counsel for respondent No.1: Sri M. Anil Kumar, Official Liquidator
Counsel for respondent No.2: Sri Chitturu Srinivas
Counsel for respondent No.3 to 6: Special Government Pleader
Counsel for respondent No.7:

Non-production of Assignment Registers for earlier periods would give rise to an adverse inference against State.

Headnote:Auction—Challenge as to—It is common case of both the parties that revenue records have been tampered with---As the State has failed to prove that assignments containing condition of non-alienation were made for the first time after 18-6-1954, it is not possible for Court to invalidate the sales purportedly on the ground that such sales are in violation of the condition of non-alienation contained in the assignments---Non-production of Assignment Registers for earlier periods would give rise to an adverse inference against State that it has deliberately withheld the record to suppress the fact that the lands were assigned prior to 18-6-1954 and that once again they are being shown as having been assigned from year 1969 onwards.

ORDER:

1. As the subject matter of both these applications is common, they are heard and being disposed of together.

2. Company Application No.1528/2011 is filed by the auction- purchaser of land admeasuring Ac.350-00 in Ulichi and Devarampadu villages, Prakasam District, in the auction held on 21-1-2010 in pursuance of the order passed by this Court in C.P.No.69/1998, inter alia impleading the Assistant Director, Survey and Land Records as respondent No.3. For convenience, the applicant is referred to as the auction purchaser. The State of Andhra Pradesh, the Revenue Divisional Officer, Ongole and the Tahsildar, Ongole, have filed Company Application No.108/2012 for their impleadment. By order dated 15-2-2012, this Court ordered their impleadment.

3. Company Application No.6 of 2013 is filed by the State of Andhra Pradesh, represented by the District Collector, Prakasam District, Ongole, the Revenue Divisional Officer, Ongole and the Tahsildar, Ongole, to set-aside the auction in respect of Ac.239-85 cents of Ulichi village and delivering vacant possession of the said land to the Government. For easy reference, the applicants in this application are referred to as the State.

4. The facts leading to the filing of the present applications are briefly stated hereunder:

M/s. Auriferous Aqua Farms Ltd., purchased Ac.350-00 of land in various survey numbers of Ulichi and Devarampadu villages, Prakasam District from the purported owners of the lands under registered sale deeds. For convenience the said company is referred to as the company in liquidation. In a creditors winding up petition, this Court has ordered winding up of the company in liquidation. The company in liquidation has mortgaged Ac.350-00 of land purchased by it to the Federal Bank Limited and obtained loan. In the auction held by the Official Liquidator on 21-1-2010 the auction purchaser has offered the highest bid of Rs.3-06 crores. This Court, by order dated 26-2-2010 in Company Application No.1697/2009 confirmed the sale. The auction purchaser has paid the entire sale consideration along with interest @ 6% per annum on the delayed payment by 9-8-2010.

5. The auction purchaser sought for survey and demarcation of the land purchased by him. As the correspondence exchanged between himself, the Official Liquidator and the Bank did not bear fruition, the auction purchaser has filed Company Application No.1528/2011 for a direction to the State and its subordinates, in particular, the Assistant Director, Survey and Land Records, to cause survey, demarcation and preparation of Field Measurement Sketch in respect of Ac.350-00 of land purchased by him in Ulichi and Devarampadu villages.

6. The State has filed Company Application No.108/2012 for impleadment in Company Application No.1528/2011. This application was supported by an affidavit filed by the Revenue Divisional Officer, Ongole. This Court, by order dated 15-2-2012 ordered impleadment of the State, the Revenue Divisional Officer and the Tahsildar, Ongole as respondent Nos.4 to 6 in Company Application No.1528/2011. Thereafter, the State has filed Company Application No.1023/2012 for setting aside the auction held by the Official Liquidator in respect of Ac.239-85 cents at Ulichi village. As the said application was found bereft of proper details, this Court dismissed the same by order dated 20-11-2012 with liberty to the State to file a fresh application. Accordingly, the State has filed Company Application No.6 of 2013 for a similar relief.

7. As noted above, the first application i.e., Company Application No.108/2012 for impleadment filed by the State, was supported by an affidavit of the Revenue Divisional Officer, Ongole, wherein it is inter alia averred that as per the Re-survey and Re-settlement Register (RSR), an extent of Ac.200-00 purchased by the company is an assigned/Government land; that in the year 1994, the company in liquidation purchased assigned lands/Government lands through various registered sale dee


























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