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2015 Supreme(AP) 820

IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
Dilip B. Bhosale, S.V. Bhatt, JJ.
K. Satyananda Patnaik and Ors. - Appellants
Versus
Hyderabad Urban Development Authority, Hyderabad Metropolitan Development Authority, rep. by its Vice-Chairman and Ors. - Respondents
W.A. Nos. 702, 741, 742, 743, 747, 754, 757, 758, 1030, 1047, 1063 of 2010 and 77, 327 and 443 of 2011 and 296 and 1337 of 2012, 533 of 2015, W.P. Nos. 8666, 15278, 16497, 17092, 18512, 18727, 18796, 24687, 26723, 27918 and 28342 of 2008 and 972, 1260, 3893, 6427, 6442, 6564, 7659, 8339, 9368, 9404, 9908, 18151 and 18464 of 2009 and 934, 25461, 25469, 30999 and 32531 of 2010 and 2913, 3308, 6643, 6730, 6958, 7472, 7476, 8103, 9429, 9915, 20341, 21385, 22907, 22933, 24651, 24798, 25042, 25785, 27765, 27950, 28638, 30235, 32427 and 34704 of 2011 and 273, 274, 597, 1085, 2151, 5075, 5076, 5202, 5631, 11345, 17457, 18669, 21070, 34169, 35841, 35867, 36855, 36905, 36939, 36952, 37579, 37580 and 39804 of 2012 and 1377, 2053, 3293, 3521, 4095, 6065, 6274, 6637, 6850, 8871, 8946, 9336, 9828, 9957, 10297, 10637, 10704, 10705, 10894, 11855, 13337, 13868, 13889, 14487, 15464, 15982, 17284, 17416, 17626, 17789, 18188, 20448, 20695, 21439, 21881, 22564, 22877, 22909, 23423, 23440, 28093 and 31533 of 2013 and 105, 148, 985, 1060, 1225, 1229, 1398, 2074, 3030, 4231, 5321, 5655, 6117, 7540, 7903, 8849, 9370, 9380, 9453, 9454, 9777, 9826, 10669, 11157, 11268, 12328, 2388, 12664, 12870, 13356, 13791, 15067, 15268, 15460, 15473, 15479, 15690, 15744, 16673, 7002, 17212, 17515, 17588, 18259, 18858, 19061, 19163, 19171, 19281, 19422, 21680, 21830, 22494, 22559, 23299, 24192, 24327, 24920, 25113, 25674, 25906, 26422, 28221, 28223, 28312, 28764, 28851, 29222, 29260, 31048, 32429, 33515, 34657, 34698, 34735, 34738, 34868, 35191, 35525, 35555, 40970 and 41159 of 2014 and 420, 873, 876, 1976, 1982, 2113, 2237, 3035, 3419, 3766, 3857, 455, 5164, 5234, 5974, 6036, 6620, 6690, 6959, 7239, 7392, 7403, 7866, 8523, 8595, 8746, 8766, 8875, 8898, 9089, 9456, 9492, 9639, 9722, 10710, 11190, 11193, 11219, 11452, 12451, 12764, 12851, 12941, 13383, 13788, 13859, 14690, 15610, 15616, 16091, 18279, 18624 and 18671 of 2015.
Decided on : 28-8-2015

Advocate Appeared:
For the Appellants :B. Adinarayana Rao, Senior Counsel for M.V. Durga Prasad, V.S.R. Anjaneyalu, E. Ajay Reddy, S. Niranjan Reddy, N. Naveen Kumar, P. Prabhakar Rao, L. Prabhakar Reddy, Namavarapu Rajeswara Rao, K. Durga Prasad, Jhansi, Hari Sreedhar, V. Venkata Ramana, K.V. Bhanu Prasad, D.V. Chalapathi Rao, Bhaskara Rao Bandarupalli, P.R. Prasad, Kowturu Pavan Kumar, Vedula Srinivas, S. Surender Reddy, B. Vijaseen Reddy, M. Damodar Reddy, O. Manoher Reddy, T.S. Rayalu, N. Ranga Reddy, Subba Rao Korrapati, Chalapathi Rao Nandiraju, M.V.S. Suresh Kumar, P. Rajesh Babu, T. Vinod Kumar, Sampath Prabhakar Reddy, Meka Rajasekhara Reddy, V.M.M. Chary, M. Damodar Reddy, Md. Ghouse Pasha, K. Jagadishwar Reddy, C. Raghu, K.C. Venkata Reddy, Venugopal Julakanti, Srinivas Velagapudi, Kishore Rai, E. Madan Mohan Rao, K. Lakshmau, Srinivas Polavarapu, Naresh Reddy, Chinnolla, Vijay B. Paropakari, Mahfoox Nazki, G. Madhusudhan Reddy, N. Chandradhar Rao, K. Giridhar Raju, Gaddam Srinivas, P. Sreedhar Reddy, Tarun G. Reddy, M.R.K. Chakravarthy, R. Giri Kumar, P.A. Seshu, M.V. Hanumantha Rao, C. Naresh Reddy, M. Srikanth Reddy, V.V. Anil Kumar, V. Jayasree, B.S. Reddy, K. Sarva Bhouma Rao, Y. Rama Rao, Bethi Venkateswarlu, M. Rajeswari, A. Ramakrishna Reddy, M.P. Chandramouli, K.N. Vijaya Laxmi, T. Sujan Kumar, P. Mehar Srinivasa Rao, T. Srikanth Reddy, Y. Anupama Devi, M. Srinivas, Marella Radha, Advocates.
For the Respondents:Nagesh Bheemapaka, S.C. for GHMC, B.D. Maheswara Reddy and A. Bhasker Reddy, M. Dhananjay Reddy, Y. Rama Rao, SC for HUDA, D. Ramesh, SC for CRDA, N. Praveen Kumar, SC for Municipal Corporation, G. Vishweshvvar Reddy, SC for KUDA, V. Preeti Reddy, SC for VUDA, M. Surender Rao, M. Ajay Kumar, SC for TS KUDA, G. Narender Reddy, SC for ZPP-MPP-GPPS, Advocate General (TS) for G.P. for Revenue (TS) and Advocate General (AP) for G.P. for Revenue (AP), Advocate General (TS) for G.P. for Municipal Admn. & Urban Dev. (TS) and Advocate General (AP) for G.P. for Municipal Admn. & Urban Dev (AP), C.V. Bhaskar Reddy, G.P. for Panchayat Raj and Rural Dev (TS), D. Bhaskar Reddy, R.A. Chary, SC for MC KAR, NIZ, Sampath Prabhakar Reddy, S.C. for GHMC.

Headnote:

Municipal Act, 1911 – Punjab Municipal Corporation Act, 1976 – Section 90(5) – Andhra Pradesh Agricultural (Conversion for Non-Agricultural Purposes) Act, 2006 – Clearance/permission –Prayers in batch of writ petitions seek declaration that the petition lands which are part of a zonal development plan under Act, 1975 are outside the purview of Act 3 of 2006 or that letter issued by Urban Development Authority calling upon the petitioners to obtain No Objection Certificate/Clearance under Act 3 of 2006 for considering layout application, as illegal, without jurisdiction and unconstitutional – In instant batch, the following questions arise for consideration under the Act 3 of 2006 and Act 1 of 1975 – Held, Considered provisions of both enactments independently and after interpreting Sections in the manner indicated above and by relying upon the principles of law laid down by Apex Court in KSL & Industries Ltds case, we are of the view that submissions of learned counsel appearing for appellants are de void of any merits and are accordingly rejected. Hence, it is held that either the scope and the ambit or payment of land conversion tax and the Development fee under Act 3 of 2006 and Act 1 of 1975 are separate and distinct. The question is answered accordingly – further contention of learned counsel for the appellants that the Urban Development Authority cannot insist upon production of NOC from Revenue Divisional Officer under Act 3 of 2006 by reference to the penalties provided under Section 6 of Act 3 of 2006, is equally unfounded. May be that under Section 6 of Act 3 of 2006, penalty for recovery of land conversion tax with fine is provided for. That does not mean that the Government with a view to synchronising the functioning of all the departments and prevent loss of revenue cannot call upon the Urban Development Authority to insist production of NOC from the Revenue Divisional Officer under Act 3 of 2006. The Urban Development Authority construing strictly gets jurisdiction to entertain an application for which conversion tax is paid under Act 3 of 2006 and the NOC can be justified by this reason as well – Insistence at best can be treated a concomitant and the authorities can certainly insist upon NOC from applicant for processing the application made under Section 14 of Act 1 of 1975 – Appeals are dismissed. (Paras 48, 49 and 50)

ORDER :

S.V. Bhatt, J.

Through this common order, we propose to dispose of writ appeals/writ petitions involving common questions of law.

2. The batch of writ appeals, is directed against the common order dated 28.04.2010 in W.P.No.26688 of 2007 and the batch. By the order dated 28.04.2010, the learned Single Judge disposed of the batch of the writ petitions by holding as follows:

"(a) It shall be competent for the Urban Development Authorities, or the Local Authorities, as the case may be, to insist on submission of clearance/permission under the 2006 Act as a condition precedent for releasing of layouts; and

(b) the land has been put to non-agricultural use before the 2006 Act came into force, such clearance/permission shall not be insisted."

3. The 2006 Act referred to is the Andhra Pradesh Agricultural (Conversion for Non-Agricultural Purposes) Act, 2006, which shall be hereinafter called and referred to for short "Act 3 of 2006".

4. The prayers in the batch of writ petitions seek declaration that the petition lands which are part of a zonal development plan under the Andhra Pradesh Urban Areas (Development) Act, 1975 (for short "Act 1 of 1975") are outside the purview of Act 3 of 2006 or that the letter issued by the Urban Development Authority calling upon the petitioners to obtain 'No Objection Certificate'/Clearance under Act 3 of 2006 for considering layout application, as illegal, without jurisdiction and unconstitutional.

5. In the instant batch, the following questions arise for consideration under the Act 3 of 2006 and the Act 1 of 1975.

(i). What is the scope and ambit of Act 3 of 2006 and Act 1 of 1975, in particular, the scope, purpose and effect of payment of Conversion Tax and Development Charges under these Acts?

(ii). Whether the Urban Development Authority for consideration and sanction of layout plans submitted by a developer of a property covered by Development Plan, can insist upon submission of No Objection Certificate/Clearance from the Revenue Divisional Officer under Act 3 of 2006 for processing an application filed for layout approval?

(iii). Whether it is necessary to get land converted into Non-Agricultural use once it is covered by Development Plan and after the sanction of layout by the Urban Development Authority?

6-7. Heard Mr. M.V. Durga Prasad, Mr. P. Prabhakar Rao, Mr.Ajay Reddy, learned counsel, Mr. V. Venkataramana and Mr. B. Adinarayana Rao, learned senior counsel for appellants/petitioners and the learned Advocates General for the States of Telangana and Andhra Pradesh. For convenience, we refer to the averments in Writ Appeal No.702 of 2010 arising out of W.P.No.26688 of 2007 and the reference to these allegations is sufficient for understanding the circumstances under which the questions of law arises for decision. The learned counsel appearing for all the parties advanced arguments on the questions framed above.

8. The case of appellants in Writ Appeal No. 702 of 2010 is that the appellants are the absolute owners and possessors of the land in Survey No.242/Part, 244/Part and 245/Part of Bahadurpalli Village, Khuthbullahpur Mandal, Ranga Reddy District. The appellants claim right and title to the said property through registered sale deeds dated 11.03.2005, 28.05.2005, 03.06.2005, 04.06.2005 and 27.12.2005. The appellants under Section 12 of Act 1 of 1975, applied to the Hyderabad Urban Development Authority/1st respondent for conversion of land use under the zonal development plan. The competent authority through Memo bearing No. 26892/I MA dated 04.05.2006 issued draft notification calling for objections against proposed change of use. The request of appellants for change of land use was accepted through G.O.Ms.No.287, Municipal Administration and Urban Development (1) Department dated 30.05.2006. The appellants applied under Sections 13 and 14 of Act 1 of 1975 for sanction of layout for t


























































































































































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