THE HON’BLE SRI JUSTICE V.V.S.RAO WRIT PETITION No.8461 of 2006 August 13, 2010 Between: M/s.Paramjhothi Engineers (P) Ltd., represented by its Managing Director, S.Sivarama Krishna Prasad … Petitioner And The Andhra Pradesh Industrial Infrastructure Corporation Ltd., Represented by its Chairman and Managing Director, Hyderabad And another ... Respondents THE HON’BLE SRI JUSTICE V.V.S.RAO WRIT PETITION No.8461 of 2006 ORDER: Petitioner company assails the order/letter of the second respondent dated 24.3.2006 whereby and whereunder purporting to exercise of the power reserved for them, the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) cancelled the allotment of industrial plot made to the petitioner more than a decade ago. The petitioner approached the second respondent for allotment of land for establishing general engineering works (job works) business. Second respondent allotted 1192.31 Sq.Mts comprised in S.No.98 in Industrial Development Area (IDA), Kondapalli, Krishna District, on 11.3.1998, for a consideration of Rs.1.19,231/- on outright sale basis. This was followed by agreement of sale between APIIC and petitioner on 31.10.1998, pursuant to which, possession was delivered on 11.1.1999. As the petitioner paid entire sale consideration, APIIC executed registered sale deed on 25.11.1999 in favour of petitioner. Petitioner allegedly could not set up the unit. Respondent issued show cause notice on 08.8.2005 proposing to cancel the allotment. Petitioner submitted explanation on 10.9.2005 and thereafter impugned order was passed on 24.3.2006 cancelling the agreement of sale and sale deed. Aggrieved by the same, present writ petition is filed. The General Manager (Law), APIIC, filed counter affidavit opposing the writ petition, 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