The dispute was about the interpretation of Section 3 of the Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act, 1977. The court was asked to decide whether a landless poor person who purchased assigned land in good faith and for valuable consideration before the commencement of the Act could confer title on the purchaser, including the right of alienation. The Act was enacted to ensure that assigned land remains with landless poor persons and prohibits alienation of such lands. The court considered the statement of objects and reasons of the Act and previous judgments to interpret Section 3 of the Act.