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2024 Supreme(AP) 1230

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
RAVI CHEEMALAPATI, J.
Duggasani Suryanarayanamma and Others – Appellant
Versus
The State Of Andhra Pradesh and Others – Respondent
Writ Petition No. 30593 of 2023
Decided on : 18-04-2024

Advocates:
Advocate Appeared:
For the Appellant : V R REDDY KOVVURI
For the Respondent: GP FOR REVENUE, GP FOR REGISTRATION AND STAMPS (AP)

IMPORTANT POINT
Assigned lands lose their status when sold in execution proceedings, allowing for registration without objection.

Headnote:

(A) Registration Act, 1908 - Section 22-A(1)(a) - Prohibitory properties list - Petitioners challenged the inclusion of their property in the prohibitory list, asserting that the land, originally assigned, lost its assigned status after being sold in public auction due to mortgage default - Court held that the property, having been sold in execution proceedings, does not retain the characteristics of assigned land, thus directing the registration of the pending documents. (Paras 1, 24)

(B) Legal Principles - The court reaffirmed that lands sold in execution proceedings by a cooperative society lose their assigned status, and previous orders directing registration without objection must be honored. (Paras 12, 16)

Facts of the case:

The petitioners sought to register sale deeds for land previously assigned but sold in auction due to mortgage default, facing refusal based on its assigned status.

Findings of Court:

The court found the refusal to register the deeds illegal, as the property had lost its assigned status post-auction.

Issues: Whether the property retains its assigned status after being sold in execution proceedings and the legality of the prohibitory list inclusion.

Ratio Decidendi: The court ruled that properties sold in execution proceedings do not retain their assigned status, thus the registration must proceed without objection. (Paras 16, 24)

Result: Writ petition allowed, directing the registration of the pending documents.

Judgement Key Points

What is the effect on assigned lands when they are sold in execution proceedings in relation to Section 22-A(1)(a) of the Registration Act, 1908?

What is the legality of including lands in the prohibitory properties list under Section 22-A(1)(a) after they have been mortgaged and auctioned by a cooperative bank?

What are the rights of purchasers and registering authorities regarding registration of sale deeds for lands that were originally assigned but later sold in execution proceedings?


ORDER :

The grievance of the petitioners is inclusion of the subject property in the prohibitory properties list furnished under Section 22-A(1)(a) of the Registration Act, 1908 by the 2nd respondent and the consequential action of the respondent no.5 in refusing to entertain the sale deeds for registration in relation to the subject property by assigning Pending document P.Nos.348, 349 & 350 of 2023.

2. The case of the petitioners, in brief, is that the land in an extent of Ac.0-92 cents in Survey No.54/1A, Ac.0-27 cents in Survey No.54/1C and Ac.50 cents in Survey No.54/2C of Buggaleti palle village, C.K.Dinne Mandal, YSR District (hereinafter referred to as, ‘the subject property’) along with other extents of land was assigned in favour of Busireddy Veeramma, Busireddy Pedda Malla Reddy and Busireddy Nadipi Malla Reddy. The assignees mortgaged the subject property in favour of District Cooperative Central Bank Limited, Kadapa and obtained loan and as they did not repay, the Bank brought the subject property for sale by way of public auction under E.P.Nos.18, 19 & 20 of 2004-05. In the said auction, Gajjala Ranga Reddy, Pothuluru Eswar Reddy and Ponnolu Pulla Reddy became highest bidders and pursuantly the Bank issued sale confirmation letters in their favour and thereafter sale certificates in Form No.10, dated 01.03.2005 were issued under Sub-Rule 14(V) of Rule 52 of the A.P.Co-operative Society Rules, 1964. Eversince, they had been in possession and enjoyment of the property and in recognition of their title and possession, the revenue records had also been mutated. When they tried to alienate the property by presenting a document to registration, the Registering Authority refused to entertain the document stating that the subject property is entered as assigned land in his office records. Aggrieved thereby, they filed writ petitions vide W.P.Nos.33310, 33311 & 33315 of 2010 and this Court disposed of them on 29.12.2010, directing the respondents therein to consider the documents presented for registration without raising any objection to the effect that the subject land was originally an assigned land. Subsequently, they executed a power of attorney dated 13.02.2009 in favour of Gajjala Venkata Subba Reddy and inturn he sold the subject property in favour of the 4th petitioner. When the 4th petitioner alienated the subject land in favour of the petitioner nos.1 to 3 and presented the documents dated 16.10.2023 for registration, the 5th respondent Registering Authority instead of registering the documents, assigned Pending Document Nos.348, 349 & 350 of 2023, dated 28.10.2023 and refused to complete the registration stating that the same was in Objection list of P.O.T./364/2016 under Section 22-A(1)(a) of the Registration Act, 1908. When the petitioners apprised the earlier orders of this Court directing the registering authority not to raise any objection to the effect that the subject land was originally an assigned land, the 5th respondent stating that the said orders are of the year 2010, required the petitioners to obtain fresh orders. The action of the 2nd respondent in continuing the property in prohibitory list under Section 22-A (1)(a) and consequential action of the 5th respondent in assigning pending document numbers. to the sale deeds presented by the petitioners is illegal, arbitrary and in violation of the law laid down in the decision in Sub Registrar, Srikalahasti, Chittoor District vs. K.Guravaiah, 2009(2) ALD 250. Therefore, this writ petition is filed praying to declare the said actions being illegal and arbitrary and direct the registering authority to register and release the pending document numbers by setting aside the prohibitory lands list under section 22-A of the Registration Act, 1908.

3. The 2nd respondent filed counter denying the averments of the petition inter alia contending that, as per the available records, the land in Survey No.54/1 to an extent of Ac.5.13 cents of Buggaletipalli village

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