Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 3673 of 2009, Judgment Date: Nov 27, 2014

                                                                  REPORTABLE


                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION


                        CIVIL APPEAL NO.3673 OF 2009



Government of Andhra Pradesh

and another                                                ...Appellant (s)


                                  versus


K. Varalakshmi and others                                  ...Respondent(s)



                                  JUDGMENT


M.Y. Eqbal, J.:


      This appeal by special leave is  directed  against  the  judgment  and

order dated 16.3.2004 passed by the High Court  of  Andhra  Pradesh  whereby

appeal preferred by the plaintiffs was allowed and the judgment  and  decree

passed by the trial court in the suit instituted by the plaintiffs has  been

set aside.


2.    The factual matrix of the case is  that  the  suit  schedule  property

admeasuring  about  five  acre  in  Survey  No.71/3  of  Paradesipalem   was

Poramboke land. One Sagiraju Bangaramma was in possession and  enjoyment  of

the said land by raising agricultural crops since 1950.  By  virtue  of  her

possession,  the  suit  property  was  assigned  to   her   by   the   first

defendant/appellant through a rough  patta  in  R.C.No.4118  of  1961.   She

continued to be  in  possession  and  enjoyment  of  the  suit  property  as

absolute owner, and by way of a registered sale deed dated 12.1.1970  (Ex.A-

2), she sold the suit property for a valuable  consideration  to  one  Durga

Ramalingeswara Rao.  Subsequently, said Ramalingeswara Rao  died  and  after

his death his wife Durga Venkata Ratnam and his sons succeeded to  the  suit

schedule property, who by sale deed dated 27.1.1982 (Ex.A-1) sold  the  suit

land to  the  plaintiffs  for  valuable  consideration  and  passed  on  the

possession thereof.


3.    In March, 1988, the  second  defendant/appellant  being  Visakhapatnam

Urban Development Authority (in short, 'VUDA') fixed  boundary  demarcations

to a part of the plaintiffs land, purporting to act under the directions  of

the District Collector of Visakhapatnam.    The  plaintiffs  being  absolute

owners and possessors of the land got issued notice under Section 80 of  the

Civil Procedure Code requesting defendants to desist from  interfering  with

the plaintiffs' possession.  Thereafter, plaintiffs instituted  a  suit  for

declaration of title and permanent injunction.


4.    It was averred in the  plaint  that  the  original  assignee  i.e.  S.

Bangaramma was a landless poor, who sold the suit land in the year  1970  to

another landless poor Durga Ramalingeswara Rao, who  purchased  it  in  good

faith for valuable consideration much  earlier  to  the  enactment  of  A.P.

Assigned Lands (Prohibition of Transfers)  Act,  1977  (in  short,  "Act  of

1977").  The heirs of the said Ramalingeswara Rao  in  turn  sold  the  suit

land to landless poor, who are the  plaintiffs-respondents  herein.   Hence,

both  the  sale  transactions  are  protected  under  Section  3(5)  of  the

aforesaid Act.  If the Government wants to exercise its right of  resumption

it is bound by law to issue a show cause notice to the persons who  obtained

right and interest in the said land  and  to  the  said  persons  in  actual

possession of the land.


5.    The first Appellant-defendant in its written  statement  opposing  the

suit denied assignment of land to Sagiraju Bangaramma.  Defendant  contended

that the land assigned to the plaintiff's predecessors in  title  Bangaramma

is not the suit land.  It is only the land covered by Survey No.71/10  which

is only Ac.4-94  cents.   As  the  land  was  assigned  subject  to  certain

conditions and violation of such conditions by the  assignee  would  entitle

to resume the land assigned even suo motu without any notice or  payment  of

any compensation.  Even the land in Survey No.71/10 which  was  assigned  to

Bangaramma was cancelled vide Rc.No.904/87/Dt.30-4-87 for violation  of  the

conditions as she failed to bring the lands under cultivation.  The  VUDA  -

defendant no.2 pleaded for dismissal of the suit  on  the  ground  that  the

assigned land is not alienable but is only heritable.  Any alienations  made

are illegal, void and unenforceable.

6.    The trial court dismissed the suit holding that the suit  land  is  an

assigned land  and  Sagiraju  Bangaramma-  the  assignee  had  no  right  to

alienate the property.  With regard  to  relief  of  injunction,  the  trial

court observed that as there is  no  resumption  of  the  assigned  land  by

defendant no.1 and, moreover, when the plaintiff is  not  entitled  for  the

declaration he cannot be  granted  any  injunction  which  is  an  equitable

relief.  Moreover, the plaintiff has not  established  his  possession  over

the suit schedule property  on  the  date  of  filing  of  the  suit  as  no

documentary evidence or oral evidence was adduced  on  his  behalf  in  that

regard.


7.     Aggrieved  by  the  decision  of  the  trial  court,  the  plaintiffs

preferred appeal before the High Court, which decreed the suit filed by  the

plaintiffs holding that the plaintiffs led in oral and documentary  evidence

and proved  Ex.A1  and  Ex.A2,  and  the  Government  did  not  examine  any

responsible  officer  nor  marked  relevant  documents  to  demonstrate  the

assignment in favour of Bangaramma.  Learned Single Judge of the High  Court

observed as under:


"20.   Unfortunately  the  court  below  found  that  the  plaintiffs  could

establish   the   transaction   between   the   legal   representatives   of

Ramalingeswara  Rao  and  the  plaintiffs,  but  the   transaction   between

Bangaramma and Ramalingeswara Rao could not be established.   This  view  of

the court below cannot be ccepted for two reasons;  firstly  the  plaintiffs

successfully proved the transaction between  Bangaramma  and  Ramalingeswara

Rao through  Ex.A2  and  also  proved  the  transaction  between  the  legal

representatives of Ramalingeswara Rao and  the  plaintiffs  through  Ex.A-1.

Therefore, the plaint averments, evidence of plaintiffs  and  the  documents

are quire consistent.

                                    xxxxx

26.   The cumulative  effect  is  that  there  is  no  evidence  whatsoever,

whether oral or documentary, on behalf of the defendants and the  plaintiffs

could successfully prove their case by examining PW's 1 & 2 and  by  marking

Ex.A-1 and A-2.  When that is the  evidence  on  record  on  behalf  of  the

plaintiffs and no evidence  whatsoever  on  behalf  of  the  defendants  and

nothing contra could be elicited by the second  defendant  from  the  cross-

examination of PW.1 and 2, I am of the view that  the  Court  below  was  in

error  in  holding  that  the  plaintiffs,  though  could  prove  the   sale

transaction between the legal representatives  of  said  Ramalingeswara  Rao

and the plaintiffs, could not prove the sale transaction and the  consequent

title of the vendors of the plaintiffs."



8.    We have heard learned counsel for the parties and perused the  record.

 It has been pleaded  on  behalf  of  the  plaintiffs-respondents  that  the

schedule property measuring 5 acres in S.No.71/3 was in the  possession  and

enjoyment of one Smt. Sagi Raju Bangaramma  since  1960  and  she  had  been

cultivating the said land since then.  She had also been  assigned  a  rough

patta for the said land in  R.C.  No.4118/61.   It  has  been  contended  on

behalf of the  respondents-plaintiffs  that  the  said  Survey  No.71/3  was

subsequently sub-divided into Survey No.71/10 and  the  respondents  are  in

possession of the said land.  The plaintiffs purchased the  suit  land  from

the successors of the deceased  Durga  Ramalingeshwar  Rao  for  a  valuable

consideration of Rs.20,000/- vide registered sale deed dated  27.1.1982  and

since then they  have  been  cultivating  on  it.   It  is  pleaded  by  the

plaintiffs that they  were  landless  poor  persons  as  contemplated  under

Section 3(5) of the Act of 1977.  Respondents have  denied  that  there  was

any show cause notice dated 24.3.1983 issued to the  original  possessor  of

the land in S.No.71/3 and that subsequent to the said show cause notice  the

assignment of the said land was cancelled on 15.5.1983 for violation of  any

condition of the assignment.


9.     Learned counsel appearing for  the  respondents  submitted  that  the

respondents have established by oral as well as  documentary  evidence  that

the transfer of the land from Sagi Raju Bangaramma to  Durga  Ramalingeshwar

Rao was prior to the commencement of the Act of  1977  and  that  he  was  a

landless poor person as contemplated under Section 3(5)  of  the  said  Act.

Learned counsel  further  submitted  that  even  if  the  aforesaid  Act  is

considered to be retrospective in effect, it would  be  irrelevant  for  the

purposes of this case as the transfer is clearly protected by  Section  3(5)

of the Act.


10.    Before  appreciating  the  rival  contentions  made  by  the  learned

counsel, we would like to refer Section 3 of Andhra Pradesh  Assigned  Lands

(Prohibition of Transfers) Act, 1977, which  is  the  sheet  anchor  of  the

appellants' case.  Section 3 reads as under:-


"Section 3: Prohibition of transfer of assigned lands (1)  Where  before  or

after the commencement of this Act,  any  land  has  been  assigned  by  the

Government to a landless poor person for purposes of  cultivation  or  as  a

house site, then, notwithstanding anything to the contrary in any other  law

for the time being in force or in the deed of  transfer  or  other  document

relating to such land, it shall not  be  transferred  and  shall  be  deemed

never to have been transferred, and accordingly no right or  title  in  such

assigned land shall vest in any person acquiring the land by such transfer.

(2)   No landless poor person shall  transfer  any  assigned  land,  and  no

person shall acquire any assigned land, either  by  purchase,  gift,  lease,

mortgage, exchange or otherwise.

(3)   Any transfer or acquisition made in contravention  of  the  provisions

of sub-section (1) or sub-section (2) shall be deemed to be null and void.

(4)   The provisions of this section shall apply to any transaction  of  the

nature referred to in sub-section (2) in execution of a decree or  order  of

a civil court or of any award or order of any other authority.

(5)   Nothing in this section shall apply to  an  assigned  land  which  was

purchased by  a  landless  poor  person  in  good  faith  and  for  valuable

consideration from the original assignee or  his  transferee  prior  to  the

commencement of this Act and which is in the possession of such  person  for

purposes  of  cultivation  or  as  a  house  site  on  the  date   of   such

commencement."




11.    A bare perusal of  the  aforesaid  provision  would  show  that  sub-

section (1) to (4) applies to all cases where the assignment  of  lands  was

made either before or after the commencement of the Act  by  the  Government

to a land less poor person for the purpose of cultivation or a  house  site.

However, sub-section (5) of Section 3 makes an exception in cases where  the

land has been so assigned  has  been  purchased  by  another  landless  poor

person in good  faith  or  for  valuable  consideration  from  the  original

assignee or the transferee prior to the commencement of the Act.




12.   It is the clear case of the plaintiff respondent that  in  1971  their

original assignee Sagiraju Bangaramma sold the  land  for  consideration  to

Durga  Ramalingeswara  Rao,  who  was  a  landless  poor  person.  The  said

Ramalingeswara Rao, was in  the  cultivating  possession  of  the  land  and

growing crop.  After his death,  his  wife  Smt.  Venkata  Ratnam  and  sons

succeeded the property and continuously remained in  cultivating  possession

till 1982 when  they  sold  the  land  to  plaintiff   in  consideration  of

Rs.20,000/-. The plaintiff-respondents proved the assignment deed  and  also

led the evidence and proved that  they  are  the  bona  fide  purchaser  for

valuable  consideration.   Curiously  enough,  no  evidence  whatsoever  was

adduced on behalf of the defendants-appellants in support of their  defence,

which has been rightly noticed by the High Court.




13.   In the background of these facts, we are fully in agreement  with  the

finding recorded by the High Court that the transactions made in  favour  of

the plaintiff and his predecessors are fully saved  by  sub-section  (5)  of

Section 3 of the Act.




14.   Hence, we do not find any reason to differ with the findings  recorded

by the High Court.




15.   This appeal has, therefore, no merit and is liable to be dismissed.




                                        ..................................J.

                                                     [ M.Y. Eqbal ]




                                         ..................................J
                                                     
                                              [Abhay Manohar Sapre]



New Delhi                          

November 27, 2014



ITEM NO.1              COURT NO.8               SECTION XIIA


               S U P R E M E  C O U R T  O F  I N D I A

                       RECORD OF PROCEEDINGS


Civil Appeal  No(s).  3673/2009


GOVERNMENT OF A.P. & ANR.                          Appellant(s)


                                VERSUS


K. VARALAKSHMI & ORS.                              Respondent(s)





Date : 27/11/2014 This appeal was called on for hearing today.


CORAM :

         HON'BLE MR. JUSTICE M.Y. EQBAL

         HON'BLE MR. JUSTICE SHIVA KIRTI SINGH

For Appellant(s)

                     Ms. C. K. Sucharita,Adv.



For Respondent(s)

                     Mr. Sridhar Potaraju,Adv.

                     Mr. John Mathew,Adv.




          UPON hearing the counsel the Court made the following

                             O R D E R


            T



(Sukhbir Paul Kaur)                         (Indu Pokhriyal)

   Court Master                               Court Master