The State Of Andhra Pradesh vs $1. D Venugopal on 29 July, 2026

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    Andhra Pradesh High Court – Amravati

    The State Of Andhra Pradesh vs $1. D Venugopal on 29 July, 2026

       IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
    
                                        ***
    

    WRIT APPEAL NO: 239/2017

    Between:

    SPONSORED

    1. THE STATE OF ANDHRA PRADESH,, REP. BY ITS PRINCIPAL
    SECRETARY, REVENUE DEPARTMENT, SECRETARIAT,
    HYDERABAD, NOW AT VELAGAPUDI, AMARAVATHI, GUNTUR
    DISTRICT.

    2. THE JOINT COLLECTOR,, ANANTHAPURAMU,
    ANANTHAPURAMU DISTRICT.

    3. THE REVENUE DIVISIONAL OFFICER,, PENUKONDA DIVISION,
    ANANTHAPURAMU DISTRICT.

    …APPELLANT(S)

    AND

    $1. D VENUGOPAL, S/O.D.NARAYANAPPA, R/O.D.NO.1-1709,
    MUDIGUBBA POST AND MANDAL, ANANTHAPURAMU
    DISTRICT.

    2. A NAGAMANI, W/O.JAYACHANDRA REDDY, OCC:

    CULTIVATION, R/O.MARAVAKOTHAPALLI VILLAGE,
    LALCPALLI POST, CHILAMATHUR MANDAL,
    ANANTHAPURAMU DISTRICT.

    …RESPONDENT(S):

    IA NO: 1 OF 2017(WAMP 506 OF 2017

    Petition under Section 151 CPC praying that in the circumstances
    stated in the affidavit filed in support of the petition, the High Court may
    be pleased to suspend the operation of the order in W.P.No. 22912 of
    2016 dated 20-01-2017, pending disposal of the above writ appeal and
    pass

    Counsel for the Appellant(S):

    1. ADDL ADVOCATE GENERAL (AP)
    Counsel for the Respondent(S):

    1. N ASHWANI KUMAR
    2

    Date of Judgment pronounced on: 29-06-2026

    THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO

    THE HONOURABLE SRI JUSTICE RAVI CHEEMALAPATI

    THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR

    1. Whether Reporters of Local newspapers : Yes/No

    May be allowed to see the judgments?

    2. Whether the copies of judgment may be marked : Yes/No

    to Law Reporters/Journals:

    3. Whether the Lordship wishes to see the fair copy : Yes/No

    Of the Judgment?

    3

    *IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

    * THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO

    THE HONOURABLE SRI JUSTICE RAVI CHEEMALAPATI

    THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR

    + WRIT APPEAL No.239 of 2017

    % Dated: 29-06-2026

    Between:

    1. THE STATE OF ANDHRA PRADESH,, REP. BY ITS
    PRINCIPAL SECRETARY, REVENUE DEPARTMENT,
    SECRETARIAT, HYDERABAD, NOW AT VELAGAPUDI,
    AMARAVATHI, GUNTUR DISTRICT.

    2. THE JOINT COLLECTOR,, ANANTHAPURAMU,
    ANANTHAPURAMU DISTRICT.

    3. THE REVENUE DIVISIONAL OFFICER,, PENUKONDA
    DIVISION, ANANTHAPURAMU DISTRICT.

    …APPELLANT(S)

    AND

    $1. D VENUGOPAL, S/O.D.NARAYANAPPA, R/O.D.NO.1-

                1709,  MUDIGUBBA    POST   AND    MANDAL,
                ANANTHAPURAMU DISTRICT.
    
            2. A NAGAMANI, W/O.JAYACHANDRA REDDY, OCC:
    

    CULTIVATION, R/O.MARAVAKOTHAPALLI VILLAGE,
    LALCPALLI POST, CHILAMATHUR MANDAL,
    ANANTHAPURAMU DISTRICT.

    …RESPONDENT(S):

    IA NO: 1 OF 2017(WAMP 506 OF 2017

    Petition under Section 151 CPC praying that in the
    circumstances stated in the affidavit filed in support of the
    petition, the High Court may be pleased to suspend the operation
    of the order in W.P.No. 22912 of 2016 dated 20-01-2017,
    pending disposal of the above writ appeal and pass
    4

    Counsel for the Appellant(S):

    1. ADDL ADVOCATE GENERAL (AP)
    Counsel for the Respondent(S):

    1. N ASHWANI KUMAR

    <GIST :

    >HEAD NOTE:

    Cases referred: 1. 1987(1) APLJ 171,

    2. (1987) 2 ALT 253 &

    3. (2014) 15 SCC 591
    5

    APHC010323082017
    IN THE HIGH COURT OF ANDHRA PRADESH
    AT AMARAVATI [3588]
    (Special Original Jurisdiction)

    MONDAY, THE TWENTY NINETH DAY OF JUNE
    TWO THOUSAND AND TWENTY SIX

    PRESENT

    THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO

    THE HONOURABLE SRI JUSTICE RAVI CHEEMALAPATI

    THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR

    WRIT APPEAL NO: 239/2017

    Writ Appeal under clause 15 of the Letters Patent appeal preferred
    against the order dt.20-01-2017 passed in WP.N.22912 of 2016.

    Between:

    1. THE STATE OF ANDHRA PRADESH,, REP. BY ITS PRINCIPAL
    SECRETARY, REVENUE DEPARTMENT, SECRETARIAT,
    HYDERABAD, NOW AT VELAGAPUDI, AMARAVATHI, GUNTUR
    DISTRICT.

    2. THE JOINT COLLECTOR,, ANANTHAPURAMU,
    ANANTHAPURAMU DISTRICT.

    3. THE REVENUE DIVISIONAL OFFICER,, PENUKONDA DIVISION,
    ANANTHAPURAMU DISTRICT.

    …APPELLANT(S)

    AND

    1. D VENUGOPAL, S/O.D.NARAYANAPPA, R/O.D.NO.1-1709,
    MUDIGUBBA POST AND MANDAL, ANANTHAPURAMU
    DISTRICT.

    2. A NAGAMANI, W/O.JAYACHANDRA REDDY, OCC:

    CULTIVATION, R/O.MARAVAKOTHAPALLI VILLAGE, LALCPALLI
    POST, CHILAMATHUR MANDAL, ANANTHAPURAMU DISTRICT.

    …RESPONDENT(S):

    6

    IA NO: 1 OF 2017(WAMP 506 OF 2017

    Petition under Section 151 CPC praying that in the circumstances
    stated in the affidavit filed in support of the petition, the High Court may
    be pleased to suspend the operation of the order in W.P.No. 22912 of
    2016 dated 20-01-2017, pending disposal of the above writ appeal and
    pass

    Counsel for the Appellant(S):

    1. ADDL ADVOCATE GENERAL (AP)

    Counsel for the Respondent(S):

    1. N ASHWANI KUMAR

    Date of Reserved : 19.06.2026

    Date of Pronouncement : 29.06.2026

    Date of Upload : 29.06.2026
    7

    The Court made the following Judgment:

    (per Hon’ble Sri Justice R. Raghunandan Rao and Sri Justice T.C.D. Sekhar)

    Heard Sri D. Yathindra Dev, the learned Special Government

    Pleader, appearing in the office of the Learned Advocate General, for the

    appellants and Sri D.V. Sitarama Murthy, the Learned Senior Counsel

    appearing on behalf of Sri N. Ashwani Kumar, the learned counsel appearing

    for the respondents.

    2. The State of Andhra Pradesh has a long standing policy of

    assigning, free of cost, land to landless poor people. To ensure that the said

    land remains with such assignees, a condition of non-alienation is

    incorporated in all the pattas, granting assignment of land to landless poor

    people. In fact, the Board Standing Orders, under which such land is

    assigned, also contain a stipulation that land assigned, free of cost, to poor

    people cannot be alienated by the assignee, in any manner. However, there

    were a large number of alienations, in violation of this restriction.

    3. In order to curb such violations and to ensure that the land

    remains with the landless poor as assignees, the Andhra Pradesh Legislature

    had enacted the Andhra Pradesh Assigned Lands (Prohibition of Transfers)

    Act, 1977 [for short “the Act”]. This Act, also obtained the assent of the

    President of India.

    4. The term “assigned land” was defined in Section 2(1) of the Act,

    to be land assigned by the Government to landless poor persons with a

    restriction of non-alienation. Section 3 of the Act, prohibits transfer of such
    8

    assigned lands and mandates that any transfer made in contravention of such

    restriction or such prohibition would be null and void. Section 4, of the Act,

    which provides for the consequences of violation of Section 3 of the Act,

    empowers the appropriate authority to evict the person in possession, where

    a sale, in contravention of Section 3, takes place and to evict the transferee,

    who is in possession. The authority would also be empowered to restore the

    land to the original assignee. However, if the land is again alienated, it would

    be taken over by the Government for assignment to some other landless poor

    person. Section 5 of the Act, prohibits registration of assigned lands. Section

    6 of the Act, 1977 exempts certain transactions from the Act. The other

    provisions from Sections 7 to 12 of the Act, 1977 would not be relevant for the

    purpose of this Judgment.

    5. The present issue arises out of the interpretation of Section 3 of

    the Act, 1977, which reads as follows:-

    Section 3: Prohibition of transfer of assigned lands:-
    (1) Where, before or after the commencement of this Act any land has been
    assigned by the Government to a landless poor person for purposes of
    cultivation or as a house-site then, notwithstanding anything to the contrary
    in any other law for the time being in force or in the deed of transfer or other
    document relating to such land, it shall not be transferred and shall be
    deemed never to have been transferred; and accordingly no right or title in
    such assigned land shall have vest in any person acquiring the land by such
    transfer.

    (2) No landless poor person shall transfer any assigned land, and no person
    shall acquire any assigned land, either by purchase, gift, lease, mortgage
    exchange or otherwise.

    (3) Any transfer or acquisition made in contravention of the provisions of sub-
    sections (1) or sub-section (2) shall be deemed to be null and void.
    (4) The provisions of this Section shall apply to any transaction of the nature
    referred to in sub-section (2) in execution of a decree or order of a civil court
    of any award or order of any other authority.
    (5) Nothing in this section shall apply to an assigned land which was
    purchased by a landless poor person in good faith and for valuable
    consideration from the original assignee or his transferee prior to the
    commencement of this Act and which is in the possession of such person for
    9

    purposes of cultivation or as a house-site on the date of such
    commencement.”

    6. In the year 2001, a Division Bench of the erstwhile High Court of

    Judicature of Andhra Pradesh at Hyderabad, in its Judgment, dated

    18.12.2001, in Writ Appeal No.1920 of 2001, had held that any transaction

    falling within the ambit of Section 3(5) of the Act, 1977 would at best validate

    that particular transaction but the land would still continue to be within the

    ambit of the Act as an assigned land.

    7. This interpretation of Section 3(5) of the Act was doubted by

    another Division Bench of the erstwhile High Court of Judicature at

    Hyderabad, For the State of Telangana and the State of Andhra Pradesh, in

    its order, dated 06.03.2017, in Writ Appeal No.239 of 2017, and referred the

    matter to a Full Bench.

    8. The question referred for the decision of this Full Bench is as

    follows:-

    “Does purchase of land by a landless poor person in good faith and for
    valuable consideration, prior to the commencement of 1977 Act and on
    fulfillment of the conditions stipulated in Section 3(5), confer title on the
    purchaser including the right of alienation, or does it continue to remain
    assigned land attracting the prohibition of Section 3 of the Act”?”

    9. Sri D. Yathindra Dev, the learned Special Government Pleader, in

    the office of the Learned Advocate General, for the State, contended that the

    Act had been enacted for ensuring that the assigned land, would always

    remain with the landless poor persons to whom the land had been assigned

    and any interpretation whereby the said land is taken out of the purview of the

    Act, would be in clear violation of the spirit and letter of the Act. For this
    10

    purpose, the learned Special Government Pleader has taken us to the

    statement of objects and reasons, which reads as follows:-

    “The Government have launched, with effect from the 1stNovember, 1969, a
    special crash programme for assignment of Government waste lands to the
    landless poor persons. The rules regarding assignment of land and the
    conditions incorporated in ‘D’ form pattas prohibit alienation of such lands
    and provide for its resumption as well as regrant to eligible persons.
    However, past experience has down that substantial extents assigned to
    land less poor persons have been actually alienated and are in possession of
    well persons who have purchased such lands, efforts made for assigning
    large extent of lands to landless poor persons are going waste. With a view
    to enforce the objective more effectively, it is considered that a protective
    legislation is necessary so as to prescribe a punishment to persons who
    have purchased such lands. Further,, there have been requests, from time to
    Time, for enacting a protective legislation against transfers and alienation of
    assigned lands on the model of Legislation existing in regard to the
    Scheduled Tribes in the Scheduled areas of Andhra Pradesh, which prohibits
    alienation of lands and provide for restoration of such lands to the assignees.
    It has therefore been decided to undertake legislation immediately to prohibit
    alienation of lands assigned to landless persons and to provide for
    punishment of purchasers of such lands.”

    10. The learned Special Government Pleader would also rely upon

    the Judgment of a Full Bench of the erstwhile High Court of Andhra Pradesh,

    in the case of Dharma Reddy Vs. Sub-Collector Bodhan, Nizamabad

    District Vs. Sub-Collector, Bodhan, Nizamabad District1. In this Judgment,

    the Full Bench was called upon to decide whether the Act takes into its

    account even transfers prior to 21.01.1977, when the ordinance which

    subsequently became the Act, came into force. The Full Bench, after

    considering the language of Section 3(1) of the Act, had held that Section 3(1)

    of the Act, not only prohibits transfer of assigned lands after the

    commencement of the Act, but also declares that all transfers of such

    assigned land, which took place prior to the coming into force of the Act, shall

    also be null and void. He would contend that in such a situation, the question

    1
    1987(1) APLJ 171
    11

    of any exemption being given for any kind of transaction would not arise. He

    would also rely upon the Judgment delivered by a Learned Single Judge of

    the erstwhile High Court of Andhra Pradesh at Hyderabad, in the case of

    Majjari Pullanna Vs. Sub-Collector, Nandyal & Ors2. In this Judgment, the

    Learned Single Judge while interpreting Section 3(5) of the Act, had taken the

    view that Section 3(5) is meant to restrain the transferee-poor person from

    subsequent alienation of the land and that the said land should be retained for

    cultivation or as a house site.

    11. Sri D.V. Sitarama Murthy, the Learned Senior Counsel appearing

    on behalf of Sri N. Ashwani Kumar, the learned counsel appearing for the

    respondents would firstly contend that the Judgment of the Full Bench in the

    case of Dharma Reddy Vs. Sub-Collector Bodhan, Nizamabad District, did not

    interpret the scope and effect of Section 3(5) of the Act, except to hold, in

    paragraph No.11 of the said Judgment, that it would be open to the petitioner

    in any particular case to demonstrate that the land of such a person falls

    within the exemption provided under Section 3(5) of the Act. The Learned

    Senior Counsel would also contend that the Judgment of the Learned Single

    Judge of the erstwhile High Court of Andhra Pradesh at Hyderabad, in the

    case of Majjari Pullanna Vs. Sub-Collector, Nandyal & Ors would not be

    binding on the present Bench as this is a Full Bench of the High Court. We

    are in agreement with both contentions of the learned senior counsel.

    Consideration of the Court:-

    2

    (1987) 2 ALT 253
    12

    12. At the cost of repetition, Section 3(5) of the Act, is reproduced

    below.

    Section 3: Prohibition of transfer of assigned lands:-

    (1)…

    (2) …

    (3) …

    (4) …

    (5) Nothing in this section shall apply to an assigned land which was
    purchased by a landless poor person in good faith and for valuable
    consideration from the original assignee or his transferee prior to the
    commencement of this Act and which is in the possession of such person for
    purposes of cultivation or as a house-site on the date of such
    commencement.”

    13. Under Section 2(1) of the Act, assigned land has been defined to

    mean land which is subject to a condition of non-alienation. Section 3(1)

    prohibits the transfer of such assigned land to any person. Section 3(2)

    reinforces this prohibition by stipulating that such transfer in any of the

    methods set out in sub-section 2 are also prohibited. Thereupon, Section 3(3)

    mandates that any transfer made in contravention of 3(1) & 3(2) would be

    deemed to be null and void. Section 3(4) extends this prohibition even to any

    decree or order of a civil Court or the award or order of any other authority.

    However, Section 3(5) grants exemption to assigned land in certain

    circumstances from the provisions of Section 3. An analysis of Section 3(5)

    would reveal that the following conditions are required to be complied for any

    assigned land to fall within the ambit of Section 3 (5):-

    I. The assigned land should have been purchased by a landless poor

    person.

    II. Such purchase should be in good faith and for valuable consideration.
    13

    III. This purchase can be from the original assignee or any transferee of

    such original assignee.

    IV. The said purchase should have been prior to the commencement of

    the Act.

    V. The said landless poor person should be in possession of such land on

    the date of the commencement of the Act.

    14. To reiterate, only those lands which had been alienated prior to

    the commencement of the Act and purchased by a landless poor person, in

    good faith and for valuable consideration, who remains in possession of such

    land, at the commencement of the Act, would be exempt from the provisions

    of Section 3 of the Act.

    15. Section 4 of the Act, which provides for consequences of breach

    of Section 3 stipulates that the provisions of Section 4 would come into play

    only when the provision of sub-section 1 of Section 3 has been contravened,

    in respect of an assigned land. Section 3(5) stipulated that any purchase of

    land by a landless poor person, for valuable consideration, before the

    commencement of the Act, would be outside the scope of Section 3 itself. In

    such circumstances, Section 4 would not be applicable to any land falling

    within the purview of Section 3(5) of the Act.

    16. The language of Section 3(5) makes it clear that the object of

    exemption is not the alienation or the assignee or the transferee, but the

    assigned land itself. The inclusion of the word “transferee” in Section 3(5) has

    a certain significance. The legislature was not only condoning the transfer of
    14

    assigned land to a person who is not a landless poor person, but was also

    providing for exemption to even such transfers. The language in Section 3(5)

    is quite clear and can only be interpreted to mean that any assigned land,

    purchased prior to the Act, by a landless poor person, irrespective of whether

    the transfer is from the original assignee or a transferee, who is not a landless

    poor person, falls outside the purview of Section 3 of the Act. There is also no

    future limitation, in the provision, in terms of time or the number of

    transactions, of further transfer after the Act came into effect. This would lead

    to the conclusion that the said assigned land falls outside the prohibitions and

    consequences contained in Sections 3 and 4 of the Act and becomes and

    remains freely transferrable land.

    17. This view of the Court is fortified by the Judgment of the Hon’ble

    Supreme Court of India, in the case of State of Andhra Pradesh & Anr Vs.

    K. Varalakshmi & Ors3. In this case, the original assignee sold the land to

    another landless poor person on 12.01.1970. The legal heirs of such

    transferee sold the said land, on 27.01.1982, to a person who was not a

    landless poor person. This land was sought to be taken over by the State on

    the ground that there was a violation of the condition of non-alienation. This

    action was resisted by the transferee, in possession, who had purchased the

    land in the year 1982. The Hon’ble Supreme Court of India had held in favour

    of the petitioner on two grounds. Firstly, on the ground that the necessary

    proceedings for taking over the land had not been conducted and secondly,

    on the ground that Section 3(5) of the Act, makes an exception in relation to
    3
    (2014) 15 SCC 591
    15

    assigned lands which had been purchased, prior to the commencement of the

    Act, by another landless poor person. Paragraph Nos.11 to 13, of the said

    Judgment are relevant and are extracted here under:-

    “11. A bare perusal of the aforesaid provision would show that sub-sections
    (1) to (4) applies to all cases where the assignment of lands was made either
    before or after the commencement of the Act by the Government to a
    landless poor person for the purpose of cultivation or a house site. However,
    sub-section (5) of Section 3 makes an exception in cases where the land has
    been so assigned has been purchased by another landless poor person in
    good faith or for valuable consideration from the original assignee or the
    transferee prior to the commencement of the Act.

    12. It is the clear case of the respondent-plaintiff that in 1971 their original
    assignee SagirajuBangaramma sold the land for a consideration to Durga
    Ramalingeswara Rao, who was a landless poor person. The said
    Ramalingeswara Rao, was in the cultivating possession of the land and
    growingcrop. After his death, his wife Smt Venkata Ratnam and sons
    succeeded the property and continuously remained in cultivating possession
    till 1982 when they sold the land to plaintiff in consideration of Rs.20,000.

    The respondent-plaintiff proved the assignment deed and also led the
    evidence and proved that they are the bona fide purchaser for valuable
    consideration. Curiously enough, no evidence whatsoever was adduced on
    behalf of the appellant-defendants in support of their defence, which has
    been rightly noticed by the High Court.

    13. In the background of these facts, we are fully in agreement with the
    finding recorded by the High Court that the transactions made in favour of
    the plaintiff and his predecessors are fully saved by sub-section (5) of
    Section 3 of the Act. Hence, we do not find any reason to differ with the
    findings recorded by the High Court. This appeal has, therefore, no merit and
    is liable to be dismissed.”

    18. The learned Special Government Pleader would contend that the

    nature of the land does not change and the land would continue to be

    assigned land for the purposes of the Act. This contention cannot be

    accepted. The main provision in the Act is Section 3 holds that any alienation

    of assigned land either before or after the commencement of the Act is null

    and void. Section 4 which provides for the consequence and steps that can be

    taken by the appropriate authority, is conditioned upon Section 3 being

    applicable to such land. Once Section 3(5) takes any assigned land outside
    16

    the purview of Section 3, the consequences provided in Section 4 would not

    be applicable to such a land. Consequently, such land purchased by the

    landless poor person, would automatically fall outside the purview of the Act

    itself as the prohibition and consequence of prohibition of non-alienation and

    consequence of violation of such non-alienation would not be applicable to the

    land at all. Once, the land itself, has been taken out of the purview of Section

    3, without any limitation, in terms of time or transactions, the said exemption is

    for all time. All or any further transactions would also be protected from the

    consequences of Section 3 and Section 4 of the Act. As the land is freely

    transferable, taking a legalistic and semantic approach of holding that the land

    would remain, “Assigned land”, would be contrary to Section 3(5) itself.

    Further, the definition of assigned land, set out in Section 2(1) applies to land

    assigned with a condition of non-alienation. Once such a condition has been

    omitted, by virtue of Section 3(5), the land cannot be treated as assigned

    land.

    19. Another aspect, that needs to be considered is the fact that the

    landless poor person, who had purchased the land has paid, proper

    consideration for the land. This factor appears to have been taken into

    consideration, by the legislature, which removed the said assigned land from

    the purview of the Act itself, as a landless poor person had expended hard

    earned money and the land was transferred to a landless poor person.

    20. For all the above reasons, the reference is answered in the

    following manner:

    17

    “The purchase of land by a landless poor person in good

    faith and for valuable consideration, prior to the

    commencement of 1977 Act and on fulfillment of the

    conditions stipulated in Section 3(5), confer title on the

    purchaser including the right of alienation, and such land

    would not continue to remain assigned land attracting the

    prohibition of Section 3 of the Act.”

    21. Accordingly, the Writ Appeal is remitted back to the Division

    Bench, for adjudication. There shall be no order as to costs.

    As a sequel, pending miscellaneous applications, if any, shall

    stand closed.

    ________________________
    R. RAGHUNANDAN RAO, J

    _________________
    T.C.D. SEKHAR, J
    Date:29.06.2026
    BSM

    Per Justice Ravi Cheemalapati

    1. I have had the advantage of reading the judgment proposed by

    my esteemed brothers. While concurring with rest of the views and

    reasoning, I am unable to agree with the reasoning regarding change of

    classification of land from “assigned” to “freehold” arrived at by my

    esteemed brothers, and thus separately pen down my conclusion.
    18

    2. A detailed factual matrix of the present case at hand has been

    rendered by my esteemed brothers in their opinion, and for the sake of

    brevity, I am not replicating the same herein.

    3. The question that fell for consideration in the case on hand can
    be summarized as under:

    Whether the land purchased by a landless poor person loses
    the characteristics of assigned land in view of sub-Section
    (5) of Section 3 of the Andhra Pradesh Assigned Lands
    (Prohibition of Transfers) Act, 1997?

    4. The Primary object of the A.P.Assigned Land (Prohibition of

    Transfers) Act, 1977 (hereinafter, referred to as, „the Act, 1977‟) is to

    protect landless and homeless poor individuals from being exploited and

    losing the agricultural lands or house sites assigned to them by the

    Government. It normally makes all past and future transfers of assigned

    land completely invalid. It is retroactive meaning it applies to sales that

    occurred before its enactment.

    5. However, Section 3(5) creates a clear exemption to this strict

    Rule. For ready reference the same is extracted hereunder:

    3(5) Nothing in this section shall apply to an assigned land
    which was purchased by a landless poor person in good faith
    and for valuable consideration from the original assignee or his
    transferee prior to the commencement of this Act and which is
    in the possession of such person for purposes of cultivation or
    as a house-site on the date of such commencement.

    6. To bring a transaction within the fold of Section 3(5) of the Act,

    1977, the buyer shall meet three conditions:

    19

    1. The land was bought prior to January, 21, 1977

    2. The buyer was a landless poor person who bought it in good
    faith for a fair price

    3. The buyer is still actively using the land for farming or living on it.

    7. Though the Act, 1977 makes the transfer of assigned land

    illegal, the exemption carved out under sub-section (5) of Section-3 of the

    Act,1977 protects the purchase made by a landless poor person for a fair

    price in good faith and who still actively using the land for the purpose for

    which it was assigned.

    8. Since the exception created under Section 3(5) of the Act, 1977

    was circumscribed by the conditions referred to above, the intention of

    the legislature in granting exception is very clear that they want to

    continue the classification of the land as assigned land, else the word

    landless poor person would not have been referred to therein. Moreover,

    if it was the intention of the legislature to treat the assigned land as

    „freehold‟, the condition that the purchaser shall not only be a landless

    poor but shall still actively use the land for the purpose for which it had

    originally been assigned would not have been imposed. The intention of

    the legislature in creating exception is only to uphold the purchase made

    by the bona fide landless poor purchaser for valuable consideration but

    not to change the classification of the land from „assigned‟ to „freehold‟.

    9. Treating assigned land purchased by a landless poor person as

    freehold land would create a dangerous loophole. Assignees could easily

    bypass restrictions by selling the property to other landless individuals,
    20

    through either real or fake transactions and after getting the status of the

    land changed from „assigned‟ to „freehold‟, they would alienate the land to

    wealthy buyers thereby defeating the purpose of the Act.

    10. The Doctrine of Colorable Legislation dictates that one

    cannot do indirectly what he is prohibited from doing directly. The Courts

    must interpret statutes to fulfill the intent of the legislators, not destroy it.

    11. It is fairly settled that laws must not be bypassed through

    loopholes or indirect actions that destroy their original purpose. Treating

    assigned land purchased by a landless poor as freehold land would

    ultimately defeat the core purpose of the Act.

    12. In the above view of the matter, though the sale meeting all the

    requisite conditions of section 3(5) is protected from the rigour of the Act

    such as resumption, however the exemption granted vide Sub-section (5)

    of Section 3 of the Act cannot be stretched to the extent of stripping the

    status of the land of being an „assigned land‟.

    ___________________________
    JUSTICE RAVI CHEEMALAPATI
    29th June, 2026
    RR

    Uploaded on: 29th June, 2026.

    Whether the order is Speaking/Reasoned : Yes/ No

    Whether the order is Reportable/Non-reportable : Yes/ No
    21

    THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO

    THE HONOURABLE SRI JUSTICE RAVI CHEEMALAPATI

    AND

    THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR

    WRIT APPEAL No:239/2017
    (per Hon’ble Sri Justice R. Raghunandan Rao)

    29.06.2026

    LR copy marked
    s
    BSM



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