THE HON’BLE SRI JUSTICE V.V.S.RAO WRIT PETITION No.7977 of 2006 August 13, 2010 Between: M/s.Southern Engineering Company, represented by its Managing Partner, Sri Puttagunta Venkata Mohan Rao … Petitioner And The Andhra Pradesh Industrial Infrastructure Corporation Ltd., Represented by its Chairman and Managing Director, Hyderabad ... Respondent THE HON’BLE SRI JUSTICE V.V.S.RAO WRIT PETITION No.7977 of 2006 ORDER: M/s.Southern Engineering Company (petitioner herein) is a firm engaged in the manufacturing and marketing of heavy structural fabrication works. They applied for allotment of industrial plot in Industrial Development Area (IDA), Block-D, Visakhapatnam, belonging to Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC). By allotment letter dated 31.3.2001, plot No.203/C admeasuring 693.35 Sq.Mts comprised in S.Nos.25 (part) and 40 (part) of Chinagantyada Village of Gajuwaka Mandal in Visakhapatnam, was allotted for Rs.2,75,580/-. The petitioner alleges that he could not set up unit/ industry as there is no development in IDA and the land was in an uneven shape. After collecting entire cost of the plot, APIIC executed agreement of sale on 27.3.2002. A sale deed was also executed on 27.3.2002 in favour of petitioner. On 02.9.2005, respondent issued a show cause notice to petitioner as to why the allotment should not be cancelled and he should not be evicted from the land. Petitioner submitted explanation on 29.9.2005. Thereafter, the respondent passed impugned order dated 22.3.2006 cancelling the allotment and petitioner was directed to surrender the vacant possession. Aggrieved by the same, present writ petition is filed. A counter affidavit is filed by the respondent raising objections regarding the maintainability of writ petition and justifying the cancellation on the ground that petitioner failed to utilize the plot for which it was allotted by APIIC. It is also alleged that the APIIC has got power to cancel the allotment. The counsel for petitioner and Standing Counsel for APIIC made their submissions, when these cases were heard along with a batch of cases in W.P.No.7320 of 2006 and batch. In the judgment delivered on 16.7.2010 in the said batch, this Court overruled the objection of APIIC on the question of maintainability. The other aspects are also decided against APIIC. The conclusions and reasons therein are applicable to the facts and issues in these cases as well. It may be reiterated that when once APIIC executed sale deeds either in favour of original allottees or subsequent purchasers, who purchased the plots with the permission of APIIC (who have also accepted for change of ownership), the issue goes out of the realm of contract. Being a public authority, APIIC cannot act arbitrarily and cancel the allotment having the effect of nullifying the registered sale deed transferring the title. In the judgment delivered by this Court referred herein above, it was held as follows. There is no denial that the agreement entered into by APIIC and the petitioners in these cases, does not contain any clause in the above terms nor clause 7 in the registered sale deed can be construed as “condition super added”. This Court is not able to countenance the submission of the counsel that the phrase in clause 7 of the sale deed reading “ … … shall use the said plots for the aforesaid purpose of putting up factory or factories duly permitted by the competent Authority and for no other purpose” should be construed as “super added clause”. As held by this Court in K.Gopal Reddy v Secretary, M/s.Vijaya Coop. House Buildings Society[1], when once sale deed is registered by the seller in favour of buyer, contract is concluded and no party can enforce sale agreement covenants. Therefore, this Court holds that insofar as these cases are concerned, APIIC has no such power or jurisdiction to cancel the allotment, which has effect of nullifying the sale deed. The writ petition, for the above reasons, is allowed with costs. Advocate fee Rs.5,000/- (Rupees five thousand only). ________________ (V.V.S. RAO, J) August , 2010 YS [1] 2004 (2) ALT 538