| Headnote |
Issue for consideration: In the instant appeal, the resumption order concerning the assignment of non-occupied land in the 1960s to landless scheduled caste/scheduled tribe persons for the purpose of cultivation which was upheld by the Division Bench of the High Court is challenged; as also pertains to the issues of law concerning res judicata, nature of assignment and violation of conditions of assignment. Andhra Pradesh Assigned Land (Prohibition of Transfer) Act, 1977 – Assignment/Alienation of government land – Assignment of non-occupied land to landless scheduled caste/scheduled tribe persons – Assignees alienated the land to one through General Power of Attorney, who in turn sold the land to subsequent purchasers – Resumption order, resuming the subject land in favour of the State since assignees sold the land in contravention of the conditions of the assignment – High Court set aside resumption order as well the fi rst SCN issued to assignees by the Collector proposing to cancel the assignment of land – Issuance of second SCN that the assigned land could not be sold as per the 1977 Act, thus, the land be resumed into government possession – Second SCN culminated into another resumption order – Single Judge of the High Court held that the proceedings emanating from the Second SCN barred by the principle of res judicata and abuse of process of law and that the assignments were governed by the Laoni Rules of 1950 instead by the GOM 1122 – However, the Division Bench allowed in favour of State upholding the second resumption order – Correctness: Held: Proceedings emanating out of the Second SCN were valid – Subject Land was non-alienable and hence was subject to the provisions of the 1977 Act – Appellants-assignees had transferred the subject land in contravention to the provisions of 1977 Act and thus, the resultant resumption order is valid – Appellants not entitled to any compensation on account of the requisition of the assigned land – Furthermore, an important security agency currently occupies the subject land, thus, invocation of powers u/ Art. 142 and certain directions issued – Subject land in its entirety declared to have vested in the State Government – Constitution of India – Art. 142 - Telengana Land Revenue Act of 1317 – ss. 54, 58, 58A and 166B. [Paras 40-42, Andhra Pradesh Assigned Land (Prohibition of Transfer) Act, 1977 – Assignment of government land – Applicability of doctrine res judicata or constructive res judicata – Proceedings emanating out of the Second SCN, if barred by the doctrine of res judicata or constructive res judicata as said issues already decided by the prior judgment of High Court emanating from the First SCN – Plea that the substratum of both the fi rst Show cause notice (SCN) and second SCN essentially identical: Held: Only such determinations which are fundamental would result in the application of the doctrine of res judicata – Only those fi ndings, without which the Court cannot adjudicate a dispute and also form the vital cog in the reasoning of a defi nite conclusion on an issue on merits, constitute res judicata between the same set of parties in subsequent proceedings – However, in the process of arriving at a fi nal conclusion, if the Court makes any incidental, supplemental or non–essential observations which are not foundational to the fi nal determination, the same would not tie down the hands of courts in future – On a plain reading of the High Court’s order in conjugation with the application of the test formulated for distinguishing between a fundamental or collateral determination, it is found that the observation in respect of General Power of Attorney in the said order was indeed a mere collateral fi nding – Doctrine of constructive res judicata will also not be applicable as the issues raised in the Second SCN were never adjudicated upon in the fi rst place – Thus, the proceedings emanating out of the Second SCN are not barred by the doctrine of res judicata or the extended doctrine of constructive res judicata – Doctrines/Principles – Telengana Land Revenue Act of 1317 – ss. 54, 58, 58A and 166B. [Paras 40-42, 43, 45, 47 and 48] Andhra Pradesh Assigned Land (Prohibition of Transfer) Act, 1977 – ss. 2 and 3 – Prohibition of transfer of assigned land – Assignment of the land to landless scheduled caste/ scheduled tribe persons in the year 1961 and in the year 1991 assignees alienating the land through the General Power of attorney, and thereafter, a resumption order passed – Application of the 1977 Act: Held: Provisions of the 1977 Act attracted to regulate the said land – Subject land was non-alienable and comes under the defi nition of ‘assigned land’ as provided u/s 2(1) – General Power of Attorney executed in favour of the attorney holder by the assignees constitutes a ‘transfer’ under the 1977 Act which was intended to save the landless poor persons from the clutches of the rich and the resourceful, who deprived them of the precious title assigned to them by the Government for their occupation and the source of livelihood – Thus, the appellants transferred the subject land in contravention to the provisions of 1977 Act and thus, resulted in violation of s.3 and the resultant resumption order is valid – Telengana Land Revenue Act of 1317 – ss. 54, 58, 58A and 166B. [Paras 60, 64, 65 and 68-70] Andhra Pradesh Assigned Land (Prohibition of Transfer) Act, 1977 – Assignment of government land to assignees – Suo motu revisionary powers – Exercise of, while issuing the Second Show cause notice – Correctness: Held: Second SCN pertains to alleged violation of assignment conditions by transferring the ownership rights through sale deeds executed in the year 1992 – However, the period till 2006 could not be counted because the parties were engaged in litigation pursuant to the First SCN and it was only after the liberty was accorded by the High Court in its order in 2006 that the Second SCN could be issued – Thus, the exercise of suo motu revisionary power while issuing the Second SCN not vitiated on account of inordinate delay – Telengana Land Revenue Act of 1317 – ss. 54, 58, 58A and 166B. [Para 50] Andhra Pradesh Assigned Land (Prohibition of Transfer) Act, 1977 – Assignment of government land to assignees – Applicability of law governing the assignment of the land and if it contained any bar in respect of alienation: Held: Actual assignment took place only on the issuance of temporary pattas on 21.10.1961 – 1958 Circular as well as GOM 1122 being in force in the year 1961, are clearly applicable to the Subject Land – There was a conditional bar on alienation of the Subject Land as provided in the 1958 Circular and the GOM 1122 – Thus, the subject land was governed by the provision of the 1958 circular which included the condition of nonalienability – Telengana Land Revenue Act of 1317 – ss. 54, 58, 58A and 166B. [Paras 51-55, 57-59] Andhra Pradesh Assigned Land (Prohibition of Transfer) Act, 1977 – Resumption of land – Entitlement to compensation – Assignment of non-occupied land to landless scheduled caste/ scheduled tribe persons – Assignees alienated the land to one through General Power of Attorney, who inturn sold the land to subsequent purchasers – Resumption order, resuming the subject land since transactions in contravention of the 1977 Act – Legal heirs of assignees, if entitled to compensation on account of the resumption order: Held: Assignees not entitled to any compensation on account of the resumption order of the assigned land – Resumption denotes a punitive action by the State to take back the right or an interest in a property which was granted by it – Term ‘resumption’ must not be confl ated with the term ‘acquisition’ as employed within the meaning of Art. 300-A so as to create a right to compensation – Also allegations against the assignees for being involved with the land mafi a to usurp the subject land for private interest – Constitution of India – Art. 300 A – Compensation – Telengana Land Revenue Act of 1317 – ss. 54, 58, 58A and 166B. [Paras 73 and 74] Property Laws – Term ‘acquisition’ and ‘resumption’ – Diff erence between: Held: Acquisition denotes a positive act on behalf of the State to deprive an individual’s enjoyment of a pre-existing right in a property in furtherance of its policy whereas resumption denotes a punitive action by the State to take back the right or an interest in a property which was granted by it in the fi rst place – Term ‘resumption’ must not be confl ated with the term ‘acquisition’ as employed within the meaning of Art. 300-A of the Constitution so as to create a right to compensation – Constitution of India – Art. 300 A. [Paras 73] Doctrines/Principles – Doctrine of res judicata – Application of – Eff ective test to determine: Held: Effective test to distinguish between a fundamental or collateral determination is hinged on the inquiry of whether the concerned determination was so vital to the decision that without which the decision itself cannot stand independently – Any determination, despite being deliberate or formal, cannot give rise to application of the doctrine of res judicata if they are not fundamental in nature. [Paras 45] Doctrines/Principles – Doctrine of res judicata or the extended doctrine of constructive res judicata – Application of – Stated. [Paras 40-48] |
