Case Note & Summary
The dispute arose from two writ petitions filed by a wife and husband seeking deletion of their respective lands from the prohibitory list maintained under Section 22A of the Registration Act, 1908. The lands in question were originally assigned agricultural lands granted in 1962 to two individuals under land development pattas. The assignees mortgaged the lands to Chintalapudi Co-operative Agricultural Bank to secure agricultural loans. Upon default, the bank auctioned the lands in execution proceedings in 1985-86, and one Smt. Upadyayula Venkata Lakshmi Devi purchased the lands through sale certificates. She later sold the lands to Md. Mehamud in 1997, who in turn sold them to Sanku Ganga Ratnam in 2013. When Sanku Ganga Ratnam attempted to sell the lands to the present petitioners (husband and wife), the Sub-Registrar raised objections citing the prohibitory list under Section 22A. She then filed W.P.No.21206 of 2012, which was allowed by a learned Single Judge on 13.07.2012, directing the Sub-Registrar to receive and process documents and holding that auctioned assigned lands lose assigned character and are exempt under Section 6 of the A.P. Assigned Lands (Prohibition of Transfers) Act, 1977. Despite this order attaining finality, the revenue authorities did not delete the lands from the prohibitory list, compelling the petitioners to file the present writ petitions seeking a mandamus to declare the inclusion illegal and direct deletion and registration. The core legal issues were whether assigned lands auctioned by a co-operative bank for loan default retain assigned character and attract the prohibition under Section 22A of the Registration Act, and whether the respondents acted illegally by refusing registration despite the earlier binding decision. The petitioners argued that the lands had lost assigned character after auction and were exempt under Section 6 of the A.P. Assigned Lands Act; they relied on the earlier order. The respondents, through the Sub-Registrar, had objected solely on the ground that the properties were included in the prohibitory list. The High Court, after referring to the settled line of decisions, reiterated that once assigned lands are mortgaged to a co-operative bank and brought to sale for default, they lose the character of assigned lands, and such transactions are exempted under Section 6 of the A.P. Assigned Lands (Prohibition of Transfers) Act, 1977. Consequently, Section 22A of the Registration Act, 1908 does not prohibit registration of such lands. The Court expressed strong displeasure that revenue officers continued to ignore settled law and the binding earlier order, forcing citizens to repeatedly approach the writ court. It directed the respondents to delete the subject properties from the prohibitory list and permit registration in accordance with law, thereby allowing both writ petitions.
Headnote
A) Registration Law - Prohibitory List Under Section 22A - Applicability to Assigned Lands Auctioned by Co-operative Bank - Registration Act, 1908, Section 22A - Assigned lands mortgaged to a co-operative bank and later auctioned for default of loan lose the character of assigned lands and fall outside the prohibition under Section 22A; the registering authority cannot refuse registration on that ground. Held, inclusion in the prohibitory list is illegal and must be deleted (Paras 5-10). B) Andhra Pradesh Assigned Lands Law - Exemption for Auction Sales - A.P. Assigned Lands (Prohibition of Transfers) Act, 1977, Section 6 - Once an assigned land is brought to sale by a co-operative bank for non-payment of loan, the transaction is exempted from the prohibition on transfer of assigned lands; hence Section 22A of Registration Act, 1908 is not attracted. Held, revenue authorities erred in retaining the land in the prohibitory list (Paras 7-10). C) Administrative Law - Binding Effect of Judicial Orders - Duty of Revenue Officers to Follow Settled Law - Constitution of India, Article 226 - Despite an earlier order of this Court directing registration and holding that auctioned assigned lands are exempt, revenue officers continued to include the properties in the prohibited list and forced citizens to seek repeated writs. Held, officers must act according to settled law and delete such properties without compelling further litigation (Paras 5-6, 11).
Issue of Consideration
Whether assigned lands auctioned by a co-operative bank for default of loan retain assigned character and attract the prohibition under Section 22A of Registration Act, 1908; Whether respondents acted illegally in refusing registration and retaining lands in prohibitory list despite earlier binding order
Final Decision
Writ petitions allowed; respondents directed to delete the subject properties from prohibitory list under Section 22A of Registration Act, 1908 and permit registration of sale deeds in accordance with law
Law Points
- Assigned lands mortgaged to co-operative bank and auctioned for default of loan lose assigned character
- such transactions are exempted under Section 6 of A.P. Assigned Lands (Prohibition of Transfers) Act
- 1977
- Section 22A of Registration Act
- 1908 does not prohibit registration of such lands
- revenue authorities are bound by settled law and earlier judicial orders
- continued inclusion in prohibitory list is illegal
