HON’BLE SRI JUSTICE NAGESH BHEEMAPAKA WRIT PETITION No. 4723 OF 2024

O R D E R:

This Writ Petition challenges the action of Respondents 1 and 4 in failing to convert the land belonging to petitioner, admeasuring 6376 square yards in Plot Nos. 3, 3/1 to 3/7 in Azamabad Industrial Estate, Hyderabad from leasehold to freehold as being illegal, arbitrary, mala fide exercise of power and in contravention of G.O.Ms.No.19 dated 29.08.2023 issued by the 1^st respondent. Consequently, a direction is sought to respondents to process the Application of petitioner as falling under Category ‘A’ in terms of G.O.Ms.No.19 dated 29.08.2023 and receive 100% of the market value to convert the said land from lease hold to free hold.

2. Sri D.V. Seetharamamurthy, learned Senior Counsel appearing on behalf of Sri Koushik Kanduri, learned counsel for petitioner submits that for the purpose of Economic Development, the Nizam Government during 1927 formed a committee consisting of (i) Superintending Engineer, City Improvement Board ii) Commissioner Municipal Corporation of Hyderabad ii) Commissioner, City Police (iv) The Director, Commercial Industries and (v) Superintending Engineer, Electricity to select an area for industries and factories. The said Committees acquired land to an extent of Acs.136-04 guntas in Azamabad out of the funds provided by the Industrial Trust. Later, total area was divided into 86 plots of different sizes and leased out to Industrialists who intended to set up industries and use the same for industrial purposes for a period of 99 years. The then Superintending Engineer, City Improvement Board handed over the plots in industrial Area to the Industrial Trust Fund through Lr. No. 9/37F /7018 dated 29.12.1952. It is contended that the said Industrial Trust Fund acting for and on behalf of the Government of Hyderabad executed lease deeds in favour of M/s Shivdathrai Gulab Rai, a partnership firm consisting of four partners Gulabrai, Prahaladrai, Sundermal and Bilasrai. Originally, M/s Shivdathrai Gulab Rai was allotted Plot No.3/1 vide Agreement of Lease dated 18.07.1946 and later Plot Nos.3/2 to 3/7 vide Agreement of Lease dated 21.01.1952 to set up Mahavir Cotton Spinning & Weaving Mills in an area admeasuring total extent of 22290 Sq. yards in Azamabad Industrial Area. Petitioner is the son of one of the partners Sri Prahaladrai, original allottee of lease. Petitioner’s family i.e. petitioner's father and Petitioner have been in absolute possession and enjoyment of the subject property admeasuring 6376 Sq. yards out of the said total extent of 22290 Sq. yards by setting up an industry and undertaking industrial activity.

Learned Senior Counsel also contended that, to curb the misuse of unauthorised use of Government land and other irregularities and to prevent non-industrial use and to have uniform terms and conditions of lease, the Government enacted Azamabad Industrial Area (Termination and Regulation of Leases) Act 15 of 1992. Under the said Act, all leases or other arrangements made or entered into through registered deed or otherwise in respect of all demised plots in Azamabad Industrial Area stood terminated on the appointed day 11.07.1992 and the persons in occupation of the lands were required to apply for a fresh lease. Aggrieved by the said termination of lease, several Industrial Units of Azamabad have filed Writ Petition No.12223 of 1994 and batch before this Court to declare the said act as unconstitutional. This Court vide order dated 18.08.1904 dismissed the said Writ Petitions upholding the constitutional validity of Act 15 of 1992. Aggrieved thereby, Civil Appeals No.

8852 of 1904 and batch were filed in Supreme Court. By order dated 18.04.1900, the said cases were disposed of on the assurance given by the State Government that Act 15 of 1992 would be suitably amended. It was directed that no action against the Industries operating in the Industrial Area concerned should be taken under the said Act. The Hon’bl