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2022 Supreme(Telangana) 494

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
A. Abhishek Reddy, J.
A.P. Electrical Equipment Corporation Hyderabad rep. by its General Manager – Appellant
Versus
Thasildar, Balanagar Mandal, Balanagar, Ranga Reddy District and others – Respondents
W.P.Nos.11293 OF 2009 and 23477 OF 2010
Decided On : 03-01-2022

Headnote:(A) Urban Land (Ceiling and Regulation) Act, 1976 - Sections 10(1), 10(3), 10(5) and 10(6) - Repeal Act - The appellant challenged the eviction notice issued by the authorities claiming possession of land after the ULC Act was repealed. The court reaffirmed that proper procedure for eviction as mandated by the Act was not followed. (Paras 1-41)

(B) Legal Principles - The court held that vesting of land does not equate to taking physical possession unless specific procedural requirements are met, emphasizing the need for actual physical possession and proper notification. (Paras 21, 31-41)

Facts of the case:
The appellant, a manufacturing unit, contested the authorities' claim of forcibly taking possession of their land based on notices issued under the now-repealed ULC Act, asserting that they never ceased physical possession of the land where their factory was located. (Paras 3-10)

Findings of Court:
Throughout the proceedings, the court found that the official respondents failed to establish they had taken physical possession according to the legal requirements and thus ruled in favor of the appellant. (Paras 36-40)

Issues: The court addressed whether proper eviction procedures were followed post the repeal of the ULC Act and the validity of the notices issued for taking possession. (Paras 11-15)

Ratio Decidendi: The court determined that failure to comply with the mandatory provisions of the ULC Act regarding notices and possession negated the respondents' claims, verifying that actual physical possession remained with the appellant. (Paras 24-34)

Result: Both writ petitions were allowed, and the panchanama dated 08.02.2008 was set aside.

Table of Content
1. facts about the parties and writ petitions (Para 1 , 2 , 3 , 4 , 5 , 6)
2. parties' contentions regarding possession and actions taken (Para 8 , 9 , 10)
3. court's analysis of the legal documents (Para 13 , 14 , 15)
4. legal standards regarding possession and the ulc act (Para 19 , 21 , 24)
5. conclusion to set aside the panchanama (Para 41)

ORDER :

Since the issue involved in both the writ petitions is intrinsically connected, the writ petitions are taken up together and disposed of by this common order.

2. The Writ Petitioner in W.P. No.11293 of 2009 A.P. Electrical Equipment Corporation is a proprietary concern of ECE Industries, petitioner in W.P. No.23477 of 2020.

3. W.P. No.11293 of 2009 is filed questioning the action of the respondents in interfering with the possession and enjoyment of the petitioner - M/s. A.P. Electrical Equipment Corporation in respect of the land admeasuring 30181.10 sq. yards in survey No.76, Fathenagar Village, Balanagar Mandal, Rangareddy District, as illegal and arbitrary.

4. W.P. No.23477 of 2010 is filed aggrieved by the panchanama proceedings dated 08.02.2008 allegedly taking over possession of the land admeasuring 46,538 sq. mtrs. in survey Nos.74 to 76 of Fatehnagar village, Balanagar Mandal, Ranga Reddy District and the attempts of the respondent authorities in trying to physically dispossess the petitioner ECE Industries Ltd forcibly from the land admeasuring 46,538 sq. mtrs. and the buildings thereon even after the Repeal of the ULC Act.

5. For better appreciation and understanding of the case on hand, the facts in W.P.No.23477 of 2010 are narrated before narrating the facts in W.P. No.11293 of 2009.

6. Facts leading to filing of W.P.No.23477 of 2010, in a nutshell, are that ECE Industries Ltd. (in short ‘ECE Industries’) is involved in the business of manufacture and selling of power transformers and other electrical equipment. For the purpose of establishing its manufacturing unit, ECE Industries had purchased land admeasuring 57026 sq. mtrs. in survey Nos.78 and 79 and 106511 sq. mtrs. in survey Nos.74, 75 and 76 i.e. total admeasuring 163679 sq. mtrs situated at Fathenagar Village, Balanagar Mandal, Ranga Reddy District, through registered sale deeds in the year 1965 and since then ECE Industries has been in physical possession and enjoyment of the said property and ECE Industries had also established a manufacturing unit in the said property. After enactment of The Urban Land (Ceiling and Regulation) Act, 1976 (in short ‘ULC Act’), the ECE Industries had filed a statement in Form I under Section 6 of the ULC Act and the declaration of the ECE Industries was taken up as CC No.10571/76 by the ULC authorities. Insofar as the land in survey Nos.78 and 79 is concerned, the Government had issued G.O.Ms.No.1729 dated 27.11.1982 exempting the entire extent of land in survey Nos.78 and 79 on the ground that ECE Industries had already constructed a factory in the said land. That insofar as remaining land in survey Nos.74, 75 and 76 is concerned, the Government in the very same G.O.Ms.No.1729 dated 27.11.1982 had also exempted an area of 48,859 sq. mtrs., subject to the condition that ECE Industries should construct a separate factory and other buildings on the said land within the time stipulated in the said G.O. For the remaining extent of 56730 sq. mtrs of land also exemption has been granted to ECE Industries in view of the scheme formulated under Section 21 of the Act for construction of houses for weaker sections of the society in the said land. Despite, ECE Industries having constructed a factory building for manufacturing electrical transformers in land admeasuring about 1229 sq. mtrs., Government has issued G.O.Ms.No.303 withdrawing the exemption granted to ECE Industries under G.O.Ms.No.1729, dated 27.11.1982, in respect of 48859 sq. mtrs. Thereafter, the ULC authorities have conducted an enquiry and after re-computing it was finally held that ECE Industries was having surp

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