* THE HON’BLE SRI JUSTICE P.S. NARAYANA +W.P.No.5930 of 1997 % 29-12-2004 # A.P.S.R.T.C. EMPOLYEES CO-OPERATIVE BUILDING SOCIETY KURNOOL (REGD.No. 1542) REP., BY ITS SECRETARY, K. VEERANNA, S/o Husenaiah, 57 years, occ: Senior Traffic Inspector, A.P.S.R.T.C. KURNOOL II-Depot. Petitioner Vs. $ Government of Andhra Pradesh Rep. by its Secretary, Revenue Department, Secretariat, Hyderabad and others Respondents <GIST: >HEAD NOTE: ! Counsel for petitioner : Mr.T.Bali Reddy ^ Counsel for respondents : Government Pleader for Revenue ?CASES REFERRED : 1 (1880) ILR 5 Cal. 669 2 (1905) ILR 29 Bom. 580 3 1952 SCR 43 = AIR 1951 SC 469 4 AIR 1968 S.C. 718 5 1972(3) SCR 711 = AIR 1972 S.C. 1311 6 AIR 1979 S.C. 621 7 AIR 1990 A.P. 331 8 1990(2) S.C.J. 10 IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY NINTH DAY OF DECEMBER TWO THOUSAND AND FOUR PRESENT THE HON'BLE MR JUSTICE P.S.NARAYANA WRIT PETITION NO : 5930 of 1997 Between: A.P.S.R.T.C. EMPOLYEES CO-OPERATIVE BUILDING SOCIETY KURNOOL (REGD.No. 1542) REP., BY ITS SECRETARY, K. VEERANNA, S/o Husenaiah, 57 years, occ: Senior Traffic Inspector, A.P.S.R.T.C. KURNOOL II-Depot. ..... PETITIONER AND 1. Government of Andhra Pradesh Rep. by its Secretary, Revenue Department, Secretariat, Hyderabad. 2. The District Collector, Kurnool. 3. Revenue Divisional Officer, Kurnool. 4. Mandal Revenue Officer, Kurnool. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court may be pleased to issue a Writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the 2nd respondent in issuing the Endorsement (L.P.CMP/27/S.A./97) dated 18-2-1997 whereunder proposing to auction the land in Sy.No.473 and 460 of Dinnedevarapadu village which was allotted to the petitioner- Society as House sites as illegal, arbitrary violative of principles of natural justice, null and void and consequently direct the respondents to assign the land admeasuring Ac.24-50 cents out of the Sy.No.396 which is demarcated as Sy.No.473 after its sub-division and Ac.5-55 cents in Sy.No.460 of Dinnedevarapadu village, Kurnool District, in favour of the individual members - allottees of the Petitioner-Society. Counsel for the Petitioner:MR.T.Bali Reddy Counsel for the Respondents: GP For Revenue The Court made the following : ORDER: The A.P.S.R.T.C. Employees Co-operative Building Society, Kurnool, represented by its Secretary filed the present Writ Petition against the respondents praying for issuance of a writ, order or direction more particularly one in the nature of writ of mandamus declaring the action of the 2nd respondent in issuing the endorsement L.P.CMP/27/S.A./97 dated 18-2-1997 proposing to auction the land in Sy.No.473 and 460 of Dinnedevrapadu village which was allotted to the petitioner-society as house sites as illegal, arbitrary, violative of principles of natural justice, null and void and consequently direct the respondents to assign the land admeasuring Acs.24-50 cents out of S.No.396 which is demarcated as Sy.No.473 after its Sub-Division and Acs.5-55 cents in Sy.No.460 of Dinnedevarapadu village, Kurnool District in favour of the individual members-allottees of the petitioner-society and to pass such other suitable orders. Sri T.Bali Reddy, learned Senior Counsel representing the petitioner- society advanced submissions at length tracing the events commencing from Rc.A11.6174/72 dated 3-4-1972 till date and would contend that in the light of the facts and circumstances of the case it is a clear case where the doctrine of promissory estoppel is applicable to the facts of the case and hence the Government cannot go back on the proposals to allot these lands in favour of the petitioner-society and the members of the said society and hence the proposed auction contrary to the promise already made is arbitrary, illegal and also unconstitutional being violative of Article 21 of the Constitution of India. The learned Senior Counsel also had drawn the attention of this Court to proceedings Rc.No.B-6/1052/93 D-1, dated 7-9-1994, Rc.(E1)/1052/93, dated 29-3-2000, Rc.No.E(1)/1052/93, dated 13-7-2000 and Rc.No.E1/2682/2003 dated 1-9-2003 and the grounds raised in the affidavit filed in support of the Writ Petition and also the stand taken by the respondents in the counter affidavit. The learned Senior Counsel would conclude that in the facts and circumstances of the case, the proposed auction is not justified and the Government may have to keep up the promise and finalise the allotments in favour of the petitioner-society and its members. Per contra, the learned Government Pleader for Revenue had pointed out the lapses on the part of the petitioner-society in complying with the conditions which had been imposed in the proceedings Rc.A11/6174/72 dated 3-4-1972 and in the light of the subsequent policy decision the Government is well justified in dropping the proposals and further proceed with the proposed auction for the purpose of securing the maximum finance to the Government by putting the property to auction. The learned Counsel also had taken the Court through the contents of the counter affidavit in detail and would conclude that in view of the specific policy which had been referred to in the counter affidavit just on the strength of the proposals already made, the writ petitioner is not entitled to the relief prayed for and hence the Writ Petition is liable to be dismissed. Heard the Counsel. The secretary of the petitioner-society, a registered society consisting of the employees of A.P. State Road Transport Corporation, Kurnool, hereinafter in short referred to as “APSRTC, Kurnool” had sworn to the affidavit filed in support of the Writ Petition. It is averred that the members of the society, the employees, are all poor persons with no houses of their own and they have been residing in the rented premises at exorbitant rents and have been facing harassment from the greedy landlords and their salaries are also hardly sufficient to maintain their family and to meet the educational needs of their children and with a view to secure the residential accommodation these employees formed a society registered as “R.T.C. EMPLOYEES COOPERATIVE HOUSE BUILDING SOCIETY LTD., KURNOOL” under A.P. Co-operative Societies Act. It is further averred that the petitioner requested for assignment of house sites to its members. The District Collector, Kurnool District, permitted the Secretary of the petitioner-society to enter upon Acs.24-50 cents in S.No.396 and Acs.5-55 cents in S.No.460 of Dinnedevarapadu village for distribution of the same to 357 members pending finalisation of all the formalities and subject to the payment of market value to be fixed. The Secretary who had sworn to this affidavit was then the Treasure of the said society. The proceedings of the Collector in Rc.A.11/6174/72 dated 3-4-1972 stipulated the following conditions: i. No body should sell away the plot allotted to others; ii. House should be built in five years time; iii. Layout with 60’ x 40’ size plots should be got approved by the Revenue Divisional Officer, Kurnool; iv. The plot number to each individual should be got assigned by Revenue Divisional Officer as per the lay out approved. It is further averred that the Revenue Divisional Officer, Kurnool approved the lay out plan in S.Nos.396 and 460 measuring Acs.30- 05 cents of Dinnedevarapadu village as per L.Dis.4963/92 dated 16- 11-1992. Further the Revenue Divisional Officer, Kurnool approved the list of beneficiaries (members of the Society) after obtaining certification of the same from Regional Manager, A.P.S.R.T.C. Cuddapah and submitted to Collector with lay-out plan. The proceedings Rc.379/93 dated 12-11-1993 also stated that the land is situated on a hillock and fit for house sites and it is free from encroachment. The value of the land was fixed at Rs.7000/- per acre after inspection along with the Mandal Revenue Officer and Mandal Surveyor of Kurnool. It was further averred that the land in S.No.396 was sub-divided by the Mandal Surveyor and approved by the Mandal Revenue Officer, Kurnool on 18-12-1993. The Assistant Director of Survey and Land Records scrutinized the sub-division and issued proceedings Rc.A11/4/94 dated 1-2-1994. It is a waste land. The sub-divided extent of Acs.24-50 cents was assigned in S.No.473. In pursuance of the sub-division effected to allot the land so sub-divided as house sites to the members of the society, the Mandal Revenue Officer, Kurnool published notice on 8-2-1994 in Dinnedevarapadu village where it is situated, by beat of drum and affixture and the relevant notice is Rc.B.2031/92. It is further stated that the Mandal Revenue Officer, Kurnool by proceedings Rc.B.2031/92 dated 8-2-1994 sought the approval of Gram Panchayat and the Gram Panchayat at its meeting on 10-2- 1994 gave its approval by means of resolution to the proposal of Mandal Revenue Officer. Subsequent thereto the Mandal Revenue Officer, Kurnool submitted to the District Collector, the duly filled up questionnaire and plan on 24-4-1994 recommending acceptance. The District Collector, Kurnool sent a comprehensive report enclosing all the above records to the Government with a letter in Roc.1052/93 dated 11-6-1994 and the relevant portion of the said letter reads as follows : “The Revenue Divisional Officer has approved the lay-put plan. The beneficiaries list has been approved and signed by the Revenue Divisional Officer, Kurnool, Regional Manager, APSRTC, Cuddapah and Mandal Revenue Officer, Kurnool. The undertaking (affidavit) from each member to the effect that they are not having house or house sites within the radius of 8 K.Ms. from Kurnool town and they have accepted to pay the M.V. fixed by the Government. The affidavits are countersigned by the Notary. The proposed Market Value @ Rs.7000/- per acre for an extent of Acs.30-05 worked out to Rs.2,10,350/-, the monetary limits for fixation vests with the Government.” The Commissioner of Land Revenue in his proceedings CLR’s Ref.No.Spl.B-4/1524/94 dated 13-7-1994 asked the Collector to explain the reasons for delay and sought detailed report. The Collector, Kurnool submitted his Report in Rc.B-6 1052/93 D-1 dated 7-9-1994 and in the said report certain other aspects were recorded which are as follows : “The land is a hill block consisting waste area of Ac.900.39 acres, the area required has been sub-divided from big block, formed a new field assigning, new i.e., S.No.473 (Extent 24- 50). For this purpose, time has been taken in observing necessary formalities under S & B Act. Statutory time limit has been taken for observing formalities for submitting transfer proposals and gathering of sales of the lands in the vicinity etc.” It is also further averred that the Commissioner of Land Revenue fixed the market value and submitted the same to the Government to issue G.O. and it was pending though all procedures and formalities required for issuance of G.O. were completed as per Rules and Regulations. It is further stated that the petitioner has been expecting communication calling upon the members to deposit the market value. The respective plots of 372 members of 551 x 40’ (5 cents) are also demarcated for issuing individual assignment of the extents to each of them. It is further stated that the Revenue Divisional Officer, Kurnool on 28-8-1996 had sent a report to the District Collector in Rc.939/96 dated 28-8-1996 recommending market value of Rs.15,000/- per acre, even though the basic market value as per the records of Sub-Registrar was only Rs.7500/- per acre. The Collector, Kurnool on 19-2-1997 informed the petitioner-society that it was proposed to auction the lands agreed to be assigned to the members of the petitioner-society and with that money it is proposed to add two more storeys to the Collector’s building. The said decision taken to further proceed with the public auction of the large extent of land inclusive of the land in question had been questioned in the present Writ Petition. A counter affidavit in detail had been filed wherein none of the facts referred to in the affidavit filed in support of the Writ Petition had been denied. The stand taken by the Government in the counter affidavit is that the Government have directed the Collector to secure finance for construction of Government office buildings by putting the Government waste lands to public auction. Further the Government by G.O.Ms.No.234, Revenue (Assignment-I) Department dated 4-5- 1995 issued orders for selection of the Government lands for sale in public auction for raising funds. During the Joint Collector’s meeting held at Hyderabad on 16-5-1996, the Special Chief Secretary and Commissioner of Land Revenue, A.P., Hyderabad while reviewing the progress of the receipt of proposals of selection of surplus Government lands for sale in public auction for construction of Government buildings in the existing complex instructed to expedite proposals of lands available in the District and to furnish the particulars of the lands. Therefore a report was submitted to the Commissioner of Land Revenue, A.P. Hyderabad in Rc.B6-1052/93 dated 8-2-1997 stating that the lands in question including all other Government lands are proposed for public auction to raise funds for construction of third and fourth floors of Collectorate, Kurnool and recommended to drop the said proposal. At this stage, the Secretary of the petitioner-society had put in a petition dated 13-1-1997 to the Kurnool Chief Minister’s Grievance Cell, A.P., Hyderabad requesting for consideration of the lands in question to alienate in the name of the petitioner-society for distribution of house sites to 357 beneficiaries. The application was forwarded to the Collector, Kurnool in C.M.P.No.1604/KCMP(O)/97 dated 16-1-1997 for taking necessary action and to inform the applicant about the action taken on the petition. In response to the above, the applicant was informed through Collector’s Grievance Cell in L.Dis.CMP/27/SA/97 dated 18- 2-1997 that the lands in question are proposed for public auction to raise funds for the construction of third and fourth floors in Collector’s complex, Kurnool. Aggrieved by the same the present Writ Petition had been filed. It was also further averred that it is a fact that permission was granted to the members of the petitioner-society to enter upon land in S.No.396 to an extent of Acs.24-50 cents and in S.No.460 to an extent of Acs.5-55 cents of Dinnedevarapadu village of Kurnool Mandal on payment of market value to be fixed by the Government in the year 1972 pending finalisation of the formalities imposing condition that houses should be built in five years. But however the petitioner society did not submit beneficiaries list and the affidavits of their members till 17-5-1993 stating that the site allotted to them is at a distance of more than 10 K.Ms. from the town and the site is a hillock and they did not take proper interest for getting regular house site pattas even after 21 years. Several other details also had been narrated in the counter affidavit. It was further stated that permission was granted to the petitioner-society on 3-4-1972 through proceedings referred to supra to enter upon the land pending finalisation of all formalities and subject to the payment of market value fixed by the Government and simultaneously proposals were also called for from the Revenue Divisional Officer for assignment of house sites to 357 persons but however the petitioner-society did not submit affidavits of their members for grant of house sites till 17-5- 1993 expressing certain difficulties. Thus it is clear that the petitioner- society has no interest either to occupy the said site relating to which permission was granted. Subsequent thereto, proposals relating to the transfer of classification of land also had been referred to and it was specifically stated that it is only due to the negligence and delay in submitting the affidavits to the Government on the part of the petitioner-society, decision was taken to put these lands by way of public auction to raise funds. In nut-shell the stand taken by the Government is by virtue of the policy decision and also in the light of the public interest involved, the proposals had been dropped and hence the relief prayed for in the Writ Petition cannot be granted. It may also be of some relevance to note the proceedings referred to infra. In Rc.B6/1052/93 dated 7-9-1994 addressed by the Collector to the Secretary to Commissioner of Land Revenue, A.P. Hyderabad, it was specified as hereunder : “I invite kind attention to the reference cited. I submit that the permission was accorded to the Secretary, A.P.S.R.T.C. Employees Co-operative Building Society, Kurnool to enter upon the lands in S.Nos.396 and 460 to an extent of Ac.30-05 of Dinnedevarapadu village in this office proceedings Rc.A11.6174/72 dated 3-4-72, pending finalisation of all the formalities and subject to payment of market value fixed by the Government and also to the conditions as already reported in this office reference 1st cited. The secretary of the said Society in his letter dated 17-5-93 has requested to allot the pattas to their members urgently as some illicit mining operations of digging granite stones is being made. After inspection on 30-3-94 and 12-11-93 the Mandal Revenue Officer and Revenue Divisional Officer, Kurnool have submitted market value proposals at Rs.7,000/- per acre for assignment of house sites to the A.P.S.R.T.C. Employees and transfer proposals making the land free from encroachments and observing necessary formalities. The Revenue Divisional Officer has approved the lay out and beneficiary list of 372 members and sent under taking (affidavits) their members countersigned by the Regional Manager, A.P.S.R.T.C., Cuddapah. After receipt of the proposals from the Revenue Divisional Officer, Kurnool, the Market value proposals were submitted to the Government through Commissioner of Land Revenue, A.P., Hyderabad in this office reference 1st cited. The Commissioner of Land Revenue in the reference 2nd cited has pointed out the delay in submission of proposals at the proceedings for handing over possession of the proposed land were issued in the year 1972. In response to this, the reasons for the delay in submitting the proposals are given below. 1. That the A.P.S.R.T.C. Co.op. House Building Society, Kurnool did not submit the affidavits of their members/beneficiaries as per the norms prescribed for grant of house sites till 17-5-93 for which the Secretary of the society stated that the land for house sites allotted to them is at a distance of more than 10 K.Ms. from Kurnool town and at hillock; the previous body did not take proper interest for getting regular house site pattas. 2 . The Society has stated that the present body after taking charge, has initiated proper action in gathering particulars of all members regarding their eligibility as per rules, consent for payment of Market value fixed by the Government etc., in a prescribed proforma. 3. That the APSRTC Employees are scattered and some of the employees have already been retired. Some of them are riped for retirement. Taking view of the minimum benefits to the employees, the present body was actively manned and approached the Government with full particulars. That in the mean time eviction of temporary occupations i.e., removal of metal by the some unauthorized persons has also been taken up. 4 . The land is a hill block consisting waste area of Ac.900.39 acres, the area required has been sub-divided from big block, formed a new field assigning new i.e., S.No.473 (Extent 24.50). For this purpose, time has been taken in observing necessary formalities under S & B Act. 5. Statutory time limit has been taken for observing formalities for submitting transfer proposals and gathering of sales of the lands in the vicinity etc. 6. The verification of beneficiaries lists with reference to the affidavits filed by the members, much time has been taken as the total members are 372. The Revenue Divisional Officer, Kurnool, Regional Manager, APSRTC, Cuddapah and the Mandal Revenue Officer, Kurnool have certified the beneficiaries list after satisfying the norms. The Report of the Mandal Revenue Officer dated 2-8-1994 is enclosed. I request communication of order in this regards.” Subsequent thereto in the communication from the Collector to the Chief Commissioner of Land Administration, Andhra Pradesh, Hyderabad in Rc.(E1) 1052/93 dated 29-3-2000, it was specified as hereunder : Sub:- Assignment of House sites – Kurnool Mandal – Dinnedevarapadu (v) – Sy.No.473, 460 etc., of extent 30-05 Acs. to APSRTC Employees, Kurnool on payment of M.V. proposals submitted – Orders – Requested – Reg. Ref:- 1. This office Rc.B6.1052/93 dated 11-6-94. 2. C.C.L.A., A.P., Hyderabad Ref.Spl.B4/1524/94, dated 13-7- 94 3. This office Rc.B6.1052/93, dated 7-9-94. 4. C.C.L.A., A.P., Hyderabad., Ref.Spl.B4/1594/94, dated 24-9-1994. 5. Govt.Memo No.67238/Ann-IV(1)/94-I. 6. This office Rc.(B6)1052/93, dated 8-2-97. 7. Interim orders of W.P.M.P.No.7070/97 in W.P.No.5930/97, dt.26-3-97. 8. C.C.L.A., A.P., Hyd. Ref.Spl.B4/119/2000, dt.1-3-2000. 9. R.D.O., Kurnool Rc.(C) 938/96, dt.10-3-2000. I invite kind attention to the reference cited and submit that the reference 1st cited proposals were submitted to the Government. Through Chief Commissioner of Land Administration for assignment of house sites to the A.P.S.R.T.C. Employees, Kurnool on payment of M.V. at Rs.7000/- per acre in Sy.No.396 (old), 473 new and 460 of Dinnedevarapadu village of Kurnool Mandal further information has also been submitted in the reference 3rd cited. The proposals was endorsed by Chief Commissioner of Land Administration in the 4th reference cited. Proposing M.V. at Rs.8,500/- per acre. It is further submitted that the Government in this Memo. 5th cited have called for the latest M.V. through the Chief Commissioner of Land Administrative. In the reference 6th cited, the report was submitted to drop the proposal as the land was proposed for public auction to raise the funds for construction of the Collectorate/Revenue office and orders from Chief Commissioner of Land Administration are awaited. Mean while the representatives of A.P.S.R.T.C. employees, Kurnool have filed up in W.P.No.5930/97 in Hon’ble High Court. The High Court has passed interim orders in the reference 7th cited. A copy order is also enclosed. Counter has been filed and the case is still pending in the Hon’ble High Court. Further the Chief Commissioner of Land Administration, Andhra Pradesh, Hyderabad in the reference 8th cited has also requested to intimate the present stage of the Writ Petition. In this connection that the Revenue Divisional Officer, Kurnool has submitted the latest M.V. proposals in the reference 9th cited reporting that the proposed land is rocky, uneven and unfit for cultivation. But it is fit for house sites. As per the local enquiry and demand of the land for house sites it may be fixed the market value at Rs.50,000/- per acre. The market value at Rs.50,000/- per acre for an extent of 30-05 Acs. for assignment to the employees of A.P.S.R.T.C. Kurnool may be fixed and orders may kindly be communicated at an early date, for grant of individuals the pattas on payment of market value.” Subsequent thereto in the proceedings Rc.E(1) 1052/93, dated 13-7- 2000 addressed by the Collector to the Chief Commissioner of Land Administration, Andhra Pradesh, Hyderabad it was further specified as hereunder : Sub:- Alienation of Land – Kurnool District and Mandal Dinnadevarapadu (v), Sy.No.473, 460 etc., an extent of Acres 30-05 cents in favour of APSRTC Employees Co-op. House Building Society – Proposals – Requested – Report submitted – Regarding. Ref:- 1. This office Rc.B(6) 1052/93, dt.11-6-94. 2. CCLA., A.P., Hyderabad Ref.Spl.B4/1524/94, dt.13-7-94. 3. This office Rc.B(6) 1052/93, dt.7-9-94 4. CCLA, A.P., Hyderabad Ref.Spl.B4/1594/94, dated 24-9-94. 5. Govt.Memo No.67238/Asn.-IV(1)/94-1, dt.13-10-95 6. This Office Rc.B(6) 1052/93, dt.8-2-97 7. Interim orders of W.P.M.P.No.7070/97 in W.P.No.5930/97, dated 26-3-97. 8. CCLA.,A.P, Hyderabad Ref.Spl.B4/119/2000, dated 1-3- 2000. 9. R.D.O. Kurnool Rc.(C) 938/96, Dt.10-3-2000 10.This office Rc.E(1) 1052/93, dt.29-3-2000 11.CCLA., A.P., Hyderabad Spl. (B4) 119/2000, Dt.27-6-2000. I invite kind attention to the reference cited and submit that in the reference 1st cited proposals were submitted to the Govt. through the Chief Commissioner of Land Administration for assignment of House sites to the A.P.S.R.T.C. Employees, Kurnool on payment of Market Value at Rs.7000/- per acre. In Sy.No.396 (old) 473 New and 460 of Dinnadevarapadu (village) of Kurnool Mandal. Further information has also been submitted in the reference 3rd, 6 and 10th cited. In the reference 11th cited, the Chief Commissioner of Land Administration requested to send the proposals with latest Market Value and combined sketch. In this connection, in continues to this office report 10th cited, I submit that at present the basic value of the land is at Rs.8,700/- per acre, as per the basic valuation register maintained by the Joint Sub-Registrar. The lands proposed is rocky, uneven and unfit for cultivation. But