Motor Vehicles Act — Motor Accident Claim — Interlocutory Attachment — Assigned Land — Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act, 1977 — Whether assigned land can be attached in civil proceedings — Held, Yes — Attachment not equivalent to “alienation” — No statutory bar — Civil Revision dismissed.
A. Assigned Land — Nature of Rights — Para 6
An assignee has limited but transferable rights as permitted under law. It is settled that assigned land can be mortgaged in favour of specified financial institutions, and in the event of default, such land can be brought to sale through due process.
B. Attachment vs. Alienation — Distinction — Para 7
Order of attachment by a Civil Court is not equivalent to “alienation” within the meaning of the Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act, 1977. Attachment is only a protective measure to secure decree; transfer occurs only upon execution sale.
C. Motor Accident Claims — Securing Award Amount — Para 3 & 6
Where claimants in M.V.O.P. seek attachment of property to secure potential decree, Tribunal is justified in ordering attachment if property belongs to respondent/judgment-debtor. Sale would occur only upon failure to satisfy decree.
D. Precedential Support — Para 7
Reliance placed on Sub-Registrar, Srikalahasti v. K. Guravaiah, 2008 SCC OnLine AP 743 : (2009) 2 ALD 250 (DB), wherein it was held that mortgage of assigned land to specified institutions is not “alienation,” and statutory prohibition does not extend beyond scope defined in Act.
GIST OF THE CASE
In M.V.O.P. No.90 of 2024, claimants filed I.A. No.101 of 2025 seeking attachment of property belonging to Respondent No.1. The Motor Accident Claims Tribunal-cum-District Judge, Anantapuram allowed the application on 28.01.2025 and ordered attachment.
Petitioner challenged the order contending that the schedule property is assigned land inherited from his father (original assignee) and cannot be attached.
Respondents contended that:
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Assigned land can be mortgaged;
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Financial institutions can auction such land upon default;
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Attachment by Court is not alienation.
High Court held:
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No statutory prohibition against attachment;
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Attachment is distinct from transfer/alienation;
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Assigned Lands Act does not bar civil court attachment;
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Tribunal order is legally sustainable.
PRINCIPLES LAID DOWN
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Attachment in civil proceedings does not amount to alienation under Assigned Lands Act, 1977.
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Assigned land can be subject to mortgage and consequential sale in accordance with law.
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Civil Courts are not barred from attaching assigned land to secure claims.
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Sale would arise only upon decree and default by judgment-debtor.
DISPOSITION
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Civil Revision Petition Dismissed.
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Order dated 28.01.2025 in I.A. No.101/2025 in M.V.O.P. No.90/2024 confirmed.
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No order as to costs.
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Interlocutory applications closed.
2025:APHC:280609
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