The State of Telangana & Ors. vs Dr. Pasupuleti Nirmala Hanumantha Rao Charitable Trust

Held: The allotment of land was conditional to the respondentTrust’s knowledge – The allotment was to be used for a charitable purpose only – Even in the respondent-Trust’s understanding, the allotment of land was conditional – In response to the appellant’s letter dated 23.11.2011, the respondent-Trust had specifically replied that there were no violations of the conditions laid down in the letter dated 08.02.2001 and the land was being utilized for the purpose for which it was allotted – It was also specifically averred in the writ petition filed by the respondent-Trust that as the appellant-State had offered the land as per G.O.Ms. No.635 dated 02.07.1990 subject to three conditions vide proceedings No.E3/7542/98 dated 08.02.2001, the respondent-Trust had followed the same ‘scrupulously’ – Consequently, the respondent-Trust’s argument that no specific purpose of allotment was specified is false to the respondent-Trust’s knowledge. [Paras 19, 20]

Telangana Land Revenue Act – ss.25 and 172 – Telangana Alienation of State Lands and Land Revenue Rules 1975 – rr.5 and 6 – Transfer of Property Act, 1882 – s.10 – Whether the High Court fell in error in making out a case of sale: Held: High Court fell in error in making out a case of sale, ignoring the fact that the appellant-State had allotted land to the respondentTrust under a statutory scheme of alienation/allotment. [Para 21] Telangana Land Revenue Act – ss.25 and 172 – Telangana Alienation of State Lands and Land Revenue Rules 1975 – rr.5 and 6 – Transfer of Property Act, 1882 – s.10 – Whether any condition/restriction imposed by the State Government would be violative of Section 10 of the Transfer of Property Act, 1882: Held: This Court is of the view that the appellant-State had allotted land to public trust for public purpose – In such a situation, the State cannot be put in the normal classical inter vivos party’s position as public interest is supreme and must prevail – This Court is also of the opinion that Rules 1975 and the Board of Revenue Standing Orders operate in a completely distinct space and are not eclipsed by s.10 of the TPA. [Para 23]

Telangana Land Revenue Act – ss.25 and 172 – Telangana Alienation of State Lands and Land Revenue Rules 1975 – Transfer of Property Act, 1882 – s.10 – Decision to cut a colony – A fraud on statute:

Held: The Respondent-Trust, despite having accepted the conditions of grant of alienation laid down under Condition No.6 of the Andhra Pradesh Board Standing Orders, violated these conditions as the said land was not used for the purpose for which it was granted, i.e. for the purpose of a Charitable Trust – On the contrary, a colony was cut on the said land, which was subdivided into plots, some of which have already been sold to third parties vide different sale deeds in violation of the conditions of allotment – The decision to cut a colony in violation of the specific conditions on which land had been allotted cannot be termed as anything else but fraud on the statute. [Para 25]