THE HON’BLE MR JUSTICE L. NARASIMHA REDDY Writ Petition No.6170 of 2007 ORDER: The 1st petitioner is a Karimnagar District Cooperative Central Bank Limited, Karimnagar and the 2nd petitioner is the Primary Agricultural Cooperative Society. Loans are sanctioned in favour of the members of the 2nd petitioner-society, and as a measure of security, the lands of the borrowers are mortgaged. In the recent past, the Government issued notifications under Sections 4(1) and 6 of the Land Acquisition Act, 1894 (for short ‘the Act’), proposing to acquire vast extent of land for the purpose of Mid Manair Reservoir. The petitioners contend that on a representation made by them, the District Collector issued instructions to the Land Acquisition Officer to insist on No Objection Certificate from them, whenever compensation is paid for the mortgaged lands. The grievance of the petitioners is that despite such direction, the Land Acquisition Officer is proposing to pay compensation without reference to the petitioners. Heard learned counsel for the petitioners and learned Government Pleader for Land Acquisition. Whenever the land of a member of the 2nd petitioner-society is mortgaged, a charge gets created in favour of the petitioners over it. The transfer of the land virtually stands prohibited, unless the mortgage is redeemed. Even when the land is acquired by invoking the provisions of the Act, the petitioners can insist on clearance of debts in their favour from out of the compensation. Therefore, the Writ Petition is disposed of, directing that the land Acquisition Officer shall insist on production of No Objection Certificate from the petitioners in respect of the lands that are mortgaged in their favour. It is also directed that the petitioners shall furnish a list of the mortgaged lands, that are proposed to be acquired, enclosing copies of mortgage deeds. There shall be no order as costs. _____________________ L. NARASIMHA REDDY, J. Dt.02.06.2010. GJ