THE HON'BLE MR JUSTICE L.NARASIMHA REDDY Writ Petition No.5241 of 2007 ORDER: The petitioner is a Bank, having its activity, mostly in villages. It sanctions loans in favour of farmers 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, proposing to acquire vast extent of land for the purpose of Polavaram Irrigation Project. The petitioner states that on a representation made by it, the District Collector issued instructions to the Land Acquisition Officer to insist on the owners of the acquired land, to obtain No Objection Certificate from the petitioner, at the time of payment of compensation. The grievance of the petitioner is that despite such direction, the Land Acquisition Officer is proposing to pay compensation without reference to it. Heard the learned counsel for the petitioner and the learned Government Pleader for Land Acquisition. Whenever the land is mortgaged in favour of the petitioner, a charge gets created in its favour. 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 petitioner can insist on clearance of debts in its favour, from out of the compensation amount, payable therefor. Therefore, the writ petition is disposed of directing that the Land Acquisition Officer shall insist on production of No Objection Certificate from the petitioner in respect of the lands that are mortgaged in its favour. It is also directed that the petitioner 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 to costs. __________ 01.06.2010 JSU THE HON'BLE MR JUSTICE L.NARASIMHA REDDY Writ Petition No.5241 of 2007 Date: 01.06.2010 JSU