M C MULAJKAR Vs. GOVT OF ANDHRA PRADESH

JUDGEMENT

(1.) This appeal is against the judgment of our learned brother Obul Reddi, J. dismissing the Writ Petition filed by the appellant herein for the issue of a Writ of mandamus restraining the respondents viz. The State of Andhra Pradesh, the Collector of Hyderabad District and the Special Deputy Tahsildar, Urban, Hyderabad, to forbear from taking proceedings under the Madras Revenue Recovery Act against the appellant (petitioner) in pusurance of Form No. II noticed dated 6-5-1967 issued by the 3rd respondent.

(2.) The appellant herein obtained a loan of Rs. 20,000/- by mortgaging certain immoveable properties in December, 1953 from the Industrial Trust Fund (hereinafter called the Fund) which was constituted under the Hyderabad Industrial Trust Fund Rules, 1347 Hizri. He obtained another loan of Rs. 30,000/in August, 1953 from the same fund by hypothecating certain moveable property. In December, 1955 he obtained a further loan of Rs. 25,000/- from the fund hypothecating the Gaysers and Gayseretts manufactured by the appellants' concern and other moveable properties which were in the custody of the State Bank of Hyderabad and which were agreed to be handed over to the custody of the said Board. The appellant states that these articles were handed over to the Board on 24-1-1956. The monies borrowed under the agreement should be repaid with interest at 5% per annum compoundable at half-yearly intervals. Under the agreement it is provided that the board can after giving 30 days' notice, seize and sell the moveable properties if the loan is not paid on demand.

(3.) In the year 1965 the Government took proceedings under the Madras Revenue Recovery Act to recover the dues from the appellant. The appellant then approached this Court under Article 226 of the Constitution and filed Writ Petn. No. 934 of 1965 (AP), contending that no proceedings under the Madras Revenue Recovery Act could be taken for the recovery of the amount. The main contention of the appellant then was that the loans were granted to him under the Industrial Trust Fund Rules and that the said rules did not provide for invoking the provisions of the Revenue Recovery Act. The Writ Petition was disposed of by Gopala Krishnan Nair, J on 7-7-1965 (AP),holding that the action of the Government was authorised and valid under the provisions of Section 52 of the Madras Revenue Recovery Act.