Government of Andhra Pradesh v. K. Varalakshmi
Background
Purchasers of agricultural land sought a declaration of title and protection against interference by the Government and a development authority. Their chain of title ran from a government assignee through a pre-1977 sale to another landless poor cultivator and a later purchase from his heirs. The State disputed the assignment and relied on statutory restrictions on transferring assigned land.
Decision Breakdown
The Supreme Court dismissed the State's appeal and upheld the High Court's decree in favour of the purchasers. Section 3(5) of the 1977 Act protected qualifying good-faith purchases by landless poor persons for value before the Act commenced, with possession for cultivation or a house site at commencement. The Court accepted the purchasers' evidence establishing the protected earlier transaction and their subsequent acquisition. The Government had produced no evidence to substantiate its contrary defence. On these established facts, the transactions were saved by the statutory exception.
Lesson Learnt
Restrictions on assigned-land transfers must be considered alongside the precise statutory exception for qualifying earlier purchases. Purchasers relying on that exception need evidence of the protected transaction and possession; an unsupported government denial did not defeat the proved chain here.