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2015 AIR SCW 6510 ::2016 (1) ALJ 293
Supreme Court Of India
(From : 2010 (1) ALJ (NOC) 101 (All))
Hon'ble Judge(s): M. Y. Eqbal, C. Nagappan , JJ

(A) Government Grants Act (15 of 1895) , S.2, S.3— Mortgage of Nazul land - Validity - Nazul land given by way of renewal of lease to ABP Company - Said Nazul land mortgaged by ABP company in favour of Bank as against loan taken by said company - Sanction of State mandatorily required not obtained before creating mortgage - Clear violation of terms of lease deed - Mortgage in favour of Bank is ab initio void. (Para 32 33 34 38 45) (B) Constitution of India , Art.14— Doctrine of legitimate expectation - Cannot be applied in cases of invalid expectation - Invalid mortgage of Nazul land created by lessee company in favour of Bank - Bank thereby has no recognised legal relationship with State who is paramount title holder - Bank obtained mortgage decree in respect of said land behind back of State - Bank cannot legitimately expect State to convert leasehold interest of nazul land into a freehold interest. (Para 40 41 43 44 45) (C) Constitution of India , Art.14— Doctrine of legitimate expectation - Who can invoke. ....

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