STATE OF ANDHRA PRADESH vs M. LAKSHMI DEVI

The Supreme Court held that under Section 3(1) of the Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973, both the owner and the party in possession through part performance of an agreement to sell must declare the land as their holding. The Court clarified that if the land is surrendered as surplus only by the party in possession and not by the owner, Section 12(4) mandates that possession must revert to the owner. The Court dismissed the appeals, affirming the Appellate Tribunal's decision to return possession to the respondents as per Rule 9 of the Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Rules, 1974.