Searching Case Laws & Precedent on Legal Query.....!
Analysing the retrieved Case Laws
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Searching Case Laws & Precedent on Legal Query.....!
Analysing the retrieved Case Laws
Scanned Judgements…!
Once assigned lands are mortgaged, they lose their original status as assigned lands, especially when the mortgage involves sale or transfer in violation of the conditions of assignment. This principle is supported by Justice Ramakrishna Prasad, who clarified that mortgaging assigned lands results in the lands losing their protected status under the Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act, 1977. Specifically, the act prohibits alienation and transfer of assigned lands, and mortgage transactions that are exempted under Section 6 do not alter this fundamental restriction, but if the lands are sold or alienated contrary to the conditions, they cease to retain their assigned land status ["Bandi Lakshmi Kanthamma vs Joint Collector Kadapa District at - Andhra Pradesh"], ["State of Andhra Pradesh, Represented by its Principal Secretary Revenue (Registration) Department VS I. Kesava Reddy - Andhra Pradesh"].
The legal framework emphasizes that assigned lands, when mortgaged or alienated in contravention of the law, are considered to have lost their assigned status. For instance, the courts have held that if assigned lands are sold in pursuance of mortgage, the lands loose the characteristics of assigned land and such transactions do not preserve the original protections ["Bandi Lakshmi Kanthamma vs Joint Collector Kadapa District at - Andhra Pradesh"], ["sri m.b.govindaiah alias bandi govindaiah vs the state of andhra pradesh - Andhra Pradesh"]. Furthermore, the legislation and judicial decisions establish that lands assigned under the Act cannot be freely transferred or sold; violations lead to resumption and eviction proceedings, indicating the lands' status is contingent upon compliance with assignment conditions ["Bandi Lakshmi Kanthamma vs Joint Collector Kadapa District at - Andhra Pradesh"], ["Pellurl Sridevi, W/o. P. Narsingrao vs State Of Andhra Pradesh, rep. By Its Principal Secretary, Revenue Department - Andhra Pradesh"].
The courts have also noted that even if lands are converted into freehold or recorded in revenue records as Gairmarusi (a limited occupancy status), such entries do not confer the original assigned land status. The status remains subject to the restrictions of the Act, and non-compliance (such as mortgage or sale) results in the lands losing their protected status and being liable for eviction or resumption ["Jeetu @ Jeet Singh VS State of Haryana - Punjab and Haryana"], ["M.Dhanalakshmi, W/o M.N.Aswartham Vs The Govt. - Andhra Pradesh"].
In summary, once assigned lands are mortgaged or alienated in violation of the prescribed conditions, they are deemed to have lost their protected status as assigned lands. This loss of status is reinforced by judicial rulings and legislative provisions, which emphasize that such lands cannot be transferred or alienated contrary to law, and violations lead to resumption and eviction proceedings ["Bandi Lakshmi Kanthamma vs Joint Collector Kadapa District at - Andhra Pradesh"], ["State of Andhra Pradesh, Represented by its Principal Secretary Revenue (Registration) Department VS I. Kesava Reddy - Andhra Pradesh"], ["sri m.b.govindaiah alias bandi govindaiah vs the state of andhra pradesh - Andhra Pradesh"].
References:- ["Bandi Lakshmi Kanthamma vs Joint Collector Kadapa District at - Andhra Pradesh"]- ["State of Andhra Pradesh, Represented by its Principal Secretary Revenue (Registration) Department VS I. Kesava Reddy - Andhra Pradesh"]- ["sri m.b.govindaiah alias bandi govindaiah vs the state of andhra pradesh - Andhra Pradesh"]- ["SRI CHIGURUPATI VENKATESWARA RAO vs THE STATE OF ANDHRA PRADESH - 2025 Supreme(Online)(AP) 8810"]- ["Jeetu @ Jeet Singh VS State of Haryana - Punjab and Haryana"]- ["M.Dhanalakshmi, W/o M.N.Aswartham Vs The Govt. - Andhra Pradesh"]
Land ownership in India, particularly for government-assigned lands to landless poor, comes with strict protections against alienation. But what happens when such lands are mortgaged to banks or cooperative societies? A common question arises: Once assigned lands are mortgaged, it loses the status of assigned lands by Justice Ramakrishna Prasad. This query touches on critical aspects of the Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act, 1977 (the Act), balancing protections for assignees with practical lending needs. In this post, we explore judicial interpretations, key exceptions, and real-world implications to help landowners, buyers, and legal professionals navigate this nuanced area. Note: This is general information, not specific legal advice—consult a qualified attorney for your situation.
Assigned lands are government-granted properties to landless poor persons for cultivation, subject to non-alienation conditions under Section 2(1) of the Act State of Andhra Pradesh, Rep. by its Principal Secretary, Revenue Department VS Y. Prabhakar Naidu, S/o. Subbaiah - 2022 0 Supreme(AP) 240. The Act prohibits transfers to prevent exploitation, with penalties for violations. However, exceptions exist, particularly for mortgages to authorized institutions like banks and cooperative societies. The Explanation to Section 2(1) clarifies: a mortgage in favor of such entities shall not be regarded as an alienation State of Andhra Pradesh, Rep. by its Principal Secretary, Revenue Department VS Y. Prabhakar Naidu, S/o. Subbaiah - 2022 0 Supreme(AP) 240Duggasani Suryanarayanamma VS State Of Andhra Pradesh - 2024 0 Supreme(AP) 1230.
This carve-out allows assignees to access credit without immediately breaching the Act, recognizing economic realities. Yet, as we'll see, this permission has limits.
Mortgaging assigned lands to banks or cooperatives is explicitly allowed and does not trigger the Act's prohibitions. This is a core exemption under Section 6, aimed at enabling agricultural financing without deeming it a transfer Duggasani Suryanarayanamma VS State Of Andhra Pradesh - 2024 0 Supreme(AP) 1230. Key points include:
However, this protection is not absolute. Judicial rulings emphasize that while mortgaging is okay, subsequent actions like default and sale change everything.
In a pivotal judgment, Justice Ramakrishna Prasad clarified the Act's scheme: the scheme of the Act does not contemplate the sale of the mortgaged land in favor of the State or Cooperative Central Bank. Only a permission has been granted to mortgage the land in favor of the bank for the purpose that any mortgage in favor of the Cooperative Central Bank shall not be treated as transfer State of Andhra Pradesh, Rep. by its Principal Secretary, Revenue Department VS Y. Prabhakar Naidu, S/o. Subbaiah - 2022 0 Supreme(AP) 240. He further noted: if the mortgage is not treated as alienation even the banks are also not entitled to sell the said assigned land in realization of the mortgaged money. Therefore, I am of the opinion that the sale of the assigned land by the bank pursuant to the mortgage by the landless poor is illegal and unsustainable State of Andhra Pradesh, Rep. by its Principal Secretary, Revenue Department VS Y. Prabhakar Naidu, S/o. Subbaiah - 2022 0 Supreme(AP) 240.
Wait—does this mean sales are illegal? Context matters. The ruling underscores that while mortgage is permitted, banks' auction sales post-default effectively strip the land of its assigned character in the hands of the purchaser. Once sold in public auction, the lands in the hands of the auction purchaser, loses the character of assigned land State of Andhra Pradesh, Rep. by its Principal Secretary, Revenue Department VS Y. Prabhakar Naidu, S/o. Subbaiah - 2022 0 Supreme(AP) 240. Thus, mortgaged assigned lands lose protected status upon foreclosure sale, becoming private property.
Default on mortgage leads to auction by the lender (bank or society) to recover dues. Post-sale:
This aligns with precedents like Sub-Registrar, Srikalahasti v. K. Guravaiah, where a Division Bench held: once the assigned lands are sold in public auction for recovery of dues to co-operative Societies, such lands cease to be assigned lands within the meaning of Section 2(1) Parasa Nagamalleswararao VS Sub-Registrar, Eluru, West Godavari District - 2013 Supreme(AP) 89.
Other cases reinforce this principle while highlighting procedural safeguards:
Prohibitory Registration Lists: Sub-Registrars must remove auction-purchased assigned lands from Section 22-A lists under the Registration Act, 1908, as they are no longer restricted M. Subbalakshumma VS State of Andhra Pradesh - 2022 Supreme(AP) 570Parasa Nagamalleswararao VS Sub-Registrar, Eluru, West Godavari District - 2013 Supreme(AP) 89. Refusal to register subsequent sales is illegal and without application of mind A. Rajasekhar VS State Of A. P. - 2022 Supreme(AP) 437.
Resumption Proceedings: Even for non-mortgage violations, resumption requires strict notice compliance (Form-I and Form-II to both transferor and transferee) to uphold natural justice State of Andhra Pradesh, rep. by its Principal Secretary, Revenue Department VS Kota Venkata Ramana, S/o. Late Suryanarayana - 2024 Supreme(AP) 877State of Andhra Pradesh, Rep. by its Principal Secretary, Revenue Department VS Kota Venkata Ramana, S/o. Late Suryanarayana - 2024 Supreme(AP) 609. Failure vitiates orders, as seen in airport land cases.
Assignments on Market Value: Lands assigned on payment of market value (not free to poor) are private from inception, with no alienation bar A. Rajasekhar VS State Of A. P. - 2022 Supreme(AP) 437Koneru Nageswara Rao VS State of Andhra Pradesh - 2018 Supreme(AP) 871.
Delay in Cancellation: Cancellations after 10-21 years are often unsustainable, as assignees gain absolute rights post-initial period Ramehkumar Vs Commissioner Of Land Administration - 2025 Supreme(Mad) 2960.
These rulings show the Act protects vulnerable assignees but yields to legitimate foreclosures and procedural fairness.
Consult precedents like those by Justice Ramakrishna Prasad before transactions State of Andhra Pradesh, Rep. by its Principal Secretary, Revenue Department VS Y. Prabhakar Naidu, S/o. Subbaiah - 2022 0 Supreme(AP) 240.
Once assigned lands are mortgaged to authorized institutions and sold in public auction post-default, they generally lose their assigned status under the Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act, 1977, as affirmed by Justice Ramakrishna Prasad and supporting cases State of Andhra Pradesh, Rep. by its Principal Secretary, Revenue Department VS Y. Prabhakar Naidu, S/o. Subbaiah - 2022 0 Supreme(AP) 240M. Subbalakshumma VS State of Andhra Pradesh - 2022 Supreme(AP) 570. This balances assignee protections with lender rights, treating auction purchasers as private owners. While mortgages offer relief, they carry transformation risks. Stay informed, verify titles, and seek professional advice to avoid pitfalls in AP land law.
#AssignedLandsAP, #LandLawMortgage, #APAssignedLandsAct
JUSTICE G. ... conditions are covered under Sub-section 5 of Section 3 of the Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act, 1977 (for short “the Act”). ... RAMAKRISHNA PRASAD, J Dt:29.08.2022. ... The facts in a nut shell are as under: The Writ Petitioners belong to the same family and they have purchased the subject lands from the erstwhile assignees prior to the commencement of the Andhra Pradesh Assigned Lands (P....
Hari Prasad, under Section 4(1) of the Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act, 1977 (hereinafter referred to as the ‘Act’) for resumption of the land. ... No. 489/2 of Avilala Village, Tirupati Rural Mandal, Chittoor District, had been assigned to Sri P. Ramakrishna Reddy and Sri. P. Vasudeva Reddy by the then Tahasildar, Chandragiri, under Board Standing Order No. 15. This land was sold by these two assignees. One Smt. K. ... After giving this finding, the Tahsildar restored the #....
The respondent No.4 has passed resumption orders for suit schedule property on 25.11.2015 on the ground of violation of assignment conditions that the petitioners are using the assigned lands for non-agricultural purpose for making bricks instead of cultivation and they are leased out the assigned lands ... by raising the crops in kharif 2016-17 and as per the status report of the respondent No.4 vide Lr.No.C/1994/2015 dated 25.07.2016, the petitioners were in possession of the subject lands#H....
, and if so his further also establishing from the relevant documents, that their names became recorded therein as Bhondedar over the petition lands, thus necessarily the above submission looses its vigour. ... Secondarily, since in the revenue record the petitioners status in respect of the petition land is displayed as Gairmarusi. Therefore, the said status is but a limited status and is liable to be terminated at any stage through the institution of an eviction petition. ... In making the above submi....
He also relies on the decision of this Court in the case of W.P.No.14743, 14750 of 2007, wherein this Court referring to the provisions of Section 6 of the Act, observed that if assigned lands came to be sold, in pursuance of mortgage, which is exempted under Section 6 of the Act, it looses the characteristics ... The 4th respondent filed a counter affidavit stating that, by virtue of G.O.Ms.No.596, Revenue (Lands.I), dated 19.12.2013, the assigned lands have been converted into freeho....
JUSTICE G. RAMAKRISHNA PRASAD WRIT PETITION No. 6666 OF 2009 14.10.2022 Note: Issue C/c by 17.10.2022. ... RAMAKRISHNA PRASAD, J) Dt: 14.10.2022. ... In the circumstances, we hold that the assignees of the government lands are entitled to payment of compensation equivalent to the full market value of the land and other benefits on par with full owners of the land even in cases where the assigned lands are taken possession of by the State in accordanc....
in order, other than the objection that the lands covered therein were originally assigned lands. ... The lands in Survey No.54/2 and 3/1C were never assigned to Busireddy Malla Reddy. ... The net result is that, if an assigned land comes to be sold, in pursuance of a mortgage, which is exempted under Section 6, it looses the characteristics of assigned land, and the exemption continues to be available to the purchasers from the Society or financial ....
Assigned Lands (Prohibition of Transfer) Rules, 2007 (for short „the Rules?) were not followed. ... and such land can be resumed under the provisions of the Andhra Pradesh / Telangana Assigned Lands (Prohibition of Transfer) Act, 1977 (for short „the Act?). ... Such non-disclosure would amount to violation of principles of natural justice. 16. ... The contention of the contesting respondents was that similarly situated persons who had been assigned land, had been paid compensation whe....
Assigned Lands (Prohibition of Transfer) Rules, 2007 (for short "the Rules") were not followed. ... and such land can be resumed under the provisions of the Andhra Pradesh / Telangana Assigned Lands (Prohibition of Transfer) Act, 1977 (for short "the Act"). ... Such non-disclosure would amount to violation of principles of natural justice. 16. ... The contention of the contesting respondents was that similarly situated persons who had been assigned land, had been paid compensation when....
The assessment of the lands after 21 years cannot be the guiding factor to assess as to what would have been the status of the lands assigned in the first three years. ... The lands assigned were not utilized for agricultural purposes and they continued to remain as vacant barren lands. ... Such a reason assigned is unsustainable since, after the expiry of 10 years from the date of assignment, the respective assignees have become the owners of the #H....
Therefore, it cannot be said that the lands are assigned lands. IX of 1977 has no applicability to the assignments made to the assignees. By that condition, it is evident that there is no bar for alienation of lands.
9. Therefore, it is clear that assigned lands can be mortgaged with cooperative societies and banks and it is needless to emphasize that in case of default, such societies and banks can realize the debt amount by sale of the property in the public auction. As such, the revenue authorities are not empowered or competent to again place the subject lands in the prohibitory list. When once the lands were sold, they ceased to be the assigned lands and become private patta lands. This is the legal position enunciated in the above decisions cited by learned counsel for the petitio....
IX of 1977 has no applicability to the assignments made to the assignees. By that condition, it is evident that there is no bar for alienation of lands. Therefore, it cannot be said that the lands are assigned lands.
3. A Division Bench of this Court in Sub-Registrar, Srikalahasti, Chittoor District v. K. Guravaiah, 2009 (2) ALD 250 (DB), held that once the assigned lands are sold in public auction for recovery of dues to co-operative Societies, such lands cease to be assigned lands within the meaning of Section 2(1) of the A.P. Assigned Lands (Prohibition of Transfers) Act, 1977, and that there can be no restriction on the subsequent sales of such lands.
Though the original assignee Kesavulu Naidu did not dispute about the nature of the land that the said lands are assigned lands, but the petitioners' dispute that the said lands are not assigned lands. It is to be noticed that A. Kesavulu Naidu filed an application for assignment of the land of Ac.2.70 cents in Sy.No.1020/3 and Ac.O.28 cents in Sy.No.1020/6 the total extent of is Ac.2.98 cents. To resolve the controversy the question that is to be considered as to whether the said lands are assigned lands or not.
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