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2023 Supreme(AP) 1264

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Venkateswarlu Nimmagadda, J.
Parvathaneni Rambabu - Appellant
Versus
State of Andhra Pradesh - Respondent
Writ Petition No. 26058 of 2016
Decided On : 20-10-2023

Advocates appeared:
Venkateswara Rao Gudapati, Advocate, for the Appellant; Babuji Tenneti, Advocate, for the Respondent.

Once a beneficiary has been granted absolute rights through a sale deed, these rights should not be infringed upon based on subsequent restrictions, such as non-alienation or transfer.

Headnote:

LAND PURCHASING SCHEME - REGISTRATION ACT, 1908 - [SUMMARY OF ACT SECTIONS REFERENCED AND DISCUSSED BY THE COURT]

Fact of the Case:

The petitioner purchased land under a scheme by a cooperative society. The government waived the outstanding loans, and the sale deeds were released in favor of the petitioner. However, the subject land was listed as prohibited under Section 22-A of The Registration Act, 1908, when the petitioner intended to sell the property.

Finding of the Court:

The court found that the vendors became absolute owners of the property after repayment of loans and that the inclusion of the subject lands in the list of prohibited properties was illegal and arbitrary.

Issues: The issues revolved around the legality of including the subject lands in the list of prohibited properties and the rights of the vendors and the petitioner under the land purchasing scheme.

Ratio Decidendi: The court held that once the sale deed is executed, any subsequent restrictions, such as non-alienation or transfer, should not infringe upon the absolute rights of the beneficiaries. It also emphasized that the conditions specified in the scheme are inoperative if not mentioned as requirements in the sale deed.

Final Decision: The court allowed the writ petition, declaring the action of the respondent authorities in notifying the land as 'Assigned Lands' as illegal and directed the Sub-Registrar to register the sale deeds presented by the petitioners in accordance with the law.

ORDER

1. The petitioner purchased land of an extent of Ac.6-50 cents in R.S.Nos.1/1BA/1 to 10 of Gonnepalli Village, Chintalapudi Mandal, West Godavari District (for short 'subject land'), from his vendors - Smt. Sadhu Mariyamma and 9 others under different registered sale deeds. The vendors of this petitioner obtained loans and purchased the subject property under a scheme evolved by Respondent No.4 - District Scheduled Caste Service Cooperative Society (for short 'the Society'). According to the scheme, the loans have to be repaid by the beneficiaries under the said scheme by way of installments.

2. The State Government issued G.O.Rt.No.492 Social Welfare (SCP.I) Department dated 07.07.2009 waiving the outstanding loans extended to the persons who obtained loans from the Society. By virtue of the waiver of the loans, the sale deeds were released in favour of the petitioner vendors and they in-turn sold the land in favour of the petitioner.

3. When the petitioner intended to sell the property, the Sub-Registrar, Chintalapudi, West Godavari District issued a Notification Roc.No.E1/4536/2013 dated 08.10.2015, wherein the subject land is enlisted in the list of prohibited properties under Section 22-A of The Registration Act, 1908, on the ground that the lands are assigned in favour of the petitioner's vendors by the 4th respondent Scheduled Caste Corporation. Questioning the same, the present writ petition is filed.

4. The Government recognized the petitioner's title, possession over the property, mutated his name, issued pattadar Passbooks and title deeds in his favour. When the petitioner approached Respondent No.5 to enquire about the details of market value, stamp duty etc, he informed that the subject property is included in the list of prohibited properties notified under Section 22-A of the Registration Act, 1908. No notice was issued to the petitioners prior to inclusion of said property in the list of prohibited properties notified under Section 22-A of the Registration Act. It is further contended that as the petitioner in peaceful possession and enjoyment of the subject property, as such, the subject property cannot be included in the list of prohibited properties notified under Section 22-A of the Registration Act, 1908 requested to de-notify the same.

5. Respondent No.4 - Executive Director, District Scheduled Castes Service Cooperative Society Limited, West Godavari District, filed counter affidavit stating that, originally, land of an extent of Ac.6-48 cents was registered on 31.12.1998 by Sri Kokkirala Nageswara Rao in favour of ten Scheduled Caste landless agricultural labourers of Gonnepalli Village, Chintalapudi Mandal, under the land purchase scheme as welfare measure was implemented by the State Government. Thereafter, pattadar passbooks and title deeds were issued to the beneficiaries to facilitate them for obtaining the crop loans and agricultural input subsidies. It is submitted that that the said Scheme is a Government Sponsored Scheme, as such the land cannot be sold contrary to the rules. In paragraph No.9, it is stated as follows:

    'Loan waived. But this is purely Government sponsored Welfare Scheme to needy SC people, they cannot be sold contrary to the rules. Further the petitioner herein as sold away the above lands contrary to the rules and guidelines to Sri Parvathaneni Ramesh, s/o Satyanarayana, r/o Jagannadhapuram village, pedavegi Mandal, West Godavari District through a sale deed dated 10.01.2017 is null and void and no-nest in the eye of law.'

    6. Learned counsel for the petitioner submits that since the vendors of the petitioner acquired patta land by paying consideration at market value and after repayment of loan amounts which were sanctioned by Respondent No.4, they became absolute owners of the property, as such, the said lands cannot be treated as 'Government Lands' nor 'Assigned Lands', therefore, the subject lands of the petitioner cannot be notified as 'government lands'/Assigned lands and

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