THE HON’BLE SRI JUSTICE C.V.RAMULU W.P.No.3140 of 2009 ORAL ORDER: This writ petition is filed challenging G.O.Ms.No.1534 Revenue (U.C.III- 1) Department dated 20.12.2008 as arbitrary, illegal, without jurisdiction and to declare the same as violative of Articles 14 and 21 of the Constitution of India. It is the case of the petitioners that first petitioner is the owner of land admeasuring 67,824.50 sq.yards situated in Sy.Nos.74/P and 75/P of Fateh Nagar village, Hyderabad having purchased the same from M.Srihari S/o Narsaiah and others vide registered sale deeds bearing Doc.Nos.1004 to 1008 of 1965 dated 15.4.1965. It is stated that first petitioner is a propreitory concern in the name and style of A.P. Electrical Equipment Corporation and being the owner of the above said land, it had filed declaration under the provisions of Urban Land (Ceiling and Regulation) Act, 1976 (for short ‘the Act’) before the second respondent-Special Officer and Competent Authority, Urban Land Ceiling, Hyderabad and the second respondent vide letter No.G1/10571/76 dated 14.2.2001 declared the above said extent of land as non-surplus land for the purpose of the said Act and permitted the petitioner to continue to hold the said land for construction of dwelling units in accordance with the scheme approved under Section 21 of the Act. Pursuant to an understanding between the first petitioner and third petitioner, third petitioner acting on behalf of first petitioner pursued with the ULC authorities which resulted in passing of orders dated 14.2.2001 granting permission to the first petitioner to continue to hold the subject land as per the scheme approved under Section 21 of the Act. As part of an understanding a sum of Rs.13.5 crores was paid to the first petitioner company towards reimbursement of cost, charges and taxes incurred on the subject land since the date of purchase of the said land by petitioners 2 and 3. First petitioner executed two development Agreements-cum-General Power of Attorney in favour of petitioners 2 and 3 under two separate registered documents bearing Nos.3267/2007 and 3268/2007 dated 21.9.2007 for an extent of 36,340.64 sq.mtrs. and 20,430.50 sq.mtrs. respectively. Under the above said two documents, an interest is created in favour of petitioners 2 and 3 and an amount of Rs.16.72 crores was to be paid under the said agreement to the first petitioner towards cost of the site development, construction of boundary walls and services like consultancy for technical, financial and other services. Pursuant to the development agreement, petitioners 2 and 3 have commenced the development activity and while the matter stood thus, third parties have filed W.P.No.22153 of 2007 as against the construction activity and an interim stay of construction activity was granted by this Court on 25.10.2007 against petitioners 1 and 2 and subsequently the said order was modified on 5.3.2008 permitting second petitioner to carry on with the construction. The said writ petition was subsequently withdrawn by the petitioners therein. Further, another W.P.No.5644 of 20008 came to be filed by one Mr.Anthony on the ground that the municipal permission granted is contrary to the scheme approved under Section 21 of the Act and this Court was pleased to grant an order of stay of construction on 28.3.2008 and the same was modified on 23.4.2008 at the instance of petitioners permitting petitioners 2 and 3 to carry on with the construction activity. During the course of hearing of W.P.No.5644 of 2008, all the petitioners have sailed together and counter affidavit was filed contending that in view of the fact that the State of Andhra Pradesh adopting Urban Land (Ceiling and Regulation) Repeal Act, 1999, the Authority under the Urban Land (Ceiling and Regulation) Act, 1976 does not have any power to invoke the provisions of Section 21(2) for violating the scheme sanctioned under Section 21 of the Act. There was some more litigation pending between the parties before the Civil Courts. While the matter stood thus, the officials from the Urban Land Ceiling Department visited the subject land and asked the petitioners 2 and 3 to stop construction and when the petitioners enquired as to why the construction shall be stopped, a xerox copy of G.O.Ms.No.1534 Revenue (UC.III.1) Department dated 20.12.2008 was shown to them, whereunder the petitioners surprised to know that the Government has passed an order of resumption of subject land and subsequently directed that the said land shall be taken over and utilized for the purpose of Greater Hyderabad Municipal Corporation. According to the petitioners, the issuance of the said G.O. is arbitrary and illegal. The first respondent assumed jurisdiction, which is not vested in it since the State of Andhra Pradesh on 27.3.2008 adopted Urban Land (Ceiling and Regulation) Repeal Act, 1999. There is no necessity of going into all the details. It is suffice to notice the facts as narrated at para 15 of the said G.O., reads as under: “……………………..W.P.No.6396 of 2002 before the Hon’ble High Court. The Hon’ble High Court while disposing the said W.P. directed the Respondents i.e. Government of Andhra Pradesh and Special Officer and Competent Authority, ULC, Hyderabad and Commissioner, Municipal Corporation of Hyderabad to initiate necessary action under Section 20(2) of the Act for withdrawal of the exemption granted after following procedure contemplated under Law. The Urban Land (C&R) Act, 1976 has been repealed by adopting the Urban Land (C&R) Repeal Act, 1999 with effect from 27.3.2008 and hence it is not feasible to take action as per the directions of High Court under Section 20(2) of the Urban Land (C&R) Act, 1976……………………….” Having said so, it is further stated that: “ The declarant Corporation evidently and intentionally violated the conditions of permission granted by the Special Officer and Competent Authority, ULC, Hyderabad under Section 21(1) and failed to construct the Weaker Section Group Houses even after extension of time was granted. The Andhra Pradesh Electrical Equipment Corporation Limited in its application dated 9.7.2007 submitted to the Special Officer and Competent Authority, ULC, Hyderabad could not putforth any valid grounds, but sought for allowing further time of 5(5) years to construct the Weaker Section Group Houses. Thus, the Company is seeking extension of time repeatedly for more than 26 years without grounding the construction of Weaker Section Housing Scheme. Therefore, Government have decided to resume the surplus land to an extent of 56,730.57 sq.mtrs. in Sy.No.74/Part, 75/Part at Fateh Nagar, Hyderabad and to allot the same to Greater Hyderabad Municipal Corporation for construction of Weaker Section Houses to fulfill the object for which the declarant Corporation was accorded permission”. From the above, it is clear that that possession was not taken under the Act and proceedings under Section 10(5) and 10(6) have not been initiated insofar as the subject land is concerned. Therefore, the impugned order passed by first respondent in directing the Special Officer and Competent Authority to take possession from the first petitioner though the petitioners 2 and 3 are in possession of the subject land is arbitrary and illegal, particularly when the 1976 Act has no application by virtue of Repeal Act, 1999, which was adopted by the State of Andhra Pradesh with effect from 27.3.2008, i.e. much prior to issuance of the impugned G.O. In view of the above, I am of the opinion that the impugned G.O. is liable to be set aside and accordingly set aside. The writ petition is accordingly allowed. No order as to costs. ______________ C.V.RAMULU, J Date: 26.10.2009 DA THE HON’BLE SRI JUSTICE C.V.RAMULU W.P.No.3140 of 2009 26.10.2009 IN THE HIGH COURT OF JUDICATURE OF ANDHRA PRADESH AT HYDERABAD THE HON’BLE SRI JUSTICE C.V.RAMULU W.P.No.3140 of 2009 Date: 26th October, 2009 Between: A.P. Electrical Equipment Corporation, owned by M/s ECE Industries Ltd., New Delhi & others. .. Petitioners And State of A.P., rep. by its Principal Secretary (Revenue) (UC.III.1) Department, Secretariat, Hyderabad & others. .. Respondents