G RAJU Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) As much as common questions of law and fact arise for consideration in these two writ petitions, they are heard together and are being disposed of by this common order. For the purpose of disposal, I refer to the facts as arise in W.P. No. 6415 of 2009.

(2.) In this writ petition, the Petitioners seek for directions by way of Mandamus, questioning the validity of Memo No. 19201/Coop.iii(1)/2005-1, dated 18.04.2006, issued by the 1st respondent-Government and also the consequential proceedings of the Commissioner for Cooperation and Registrar of Cooperative Societies, Andhra Pradesh, Hyderabad, dated 28.04.2006, and also seek to declare the sale of property affected in favour of respondents 5 to 11 as illegal and arbitrary and set aside the same, with a consequential direction to the 4th respondent-Bank to sell the property in public auction and appropriate the sale proceeds proportionately/equally into all the loan accounts in O.D. Account Nos. 471 to 479, 500 and 501.

(3.) The respondent No. 4 is a Society registered under the A.P. Cooperative Societies Act, 1964 (hereinafter referred to as 'the APCS Act'), engaged in the business of banking, by obtaining license under the Banking Regulation Act, 1949. The Petitioner No. 1, which is a Proprietary concern by name M/s. Rajashree and Company along with 10 other proprietary concerns, who include the Petitioners in W.P. No. 26258 of 2009, availed a loan to the tune of Rs. 20.02 Crores from the 4th respondent-Bank. Initially, the loans obtained by the Petitioners were term loans, but the same were converted into O.D accounts in the year 2000-2001 vide O.D. Accounts bearing Nos. 471 to 479, 500 and 501. Respondents 12 to 14 herein have mortgaged their property admeasuring 7528 sq. yards, situated at Begumpet village of Balanagar Mandal in Ranga Reddy District. The said property was offered as security for the loans obtained by the Petitioners and other proprietary concerns and the respondents 12 to 14 have not divided the interest in the property, which was mortgaged to the 4 respondent-Bank. To secure the loan, respondents 12 to 14 have executed all necessary documents, including the demand promissory note and memorandum of deposit of title deeds in favour of the Bank.