CANARA BANK Vs. STATE OF A.P.

JUDGEMENT

(1.) This writ petition is filed under Article 226 of the Constitution of India for the following relief:

(2.) The grievance of the petitioner is thatM/s.Sarawathi Educational Society availed Term Loan-I facility of Rs.480.00 lakhs under loan account No. 0661773006588 from the Kurnool Branch of the Petitioner Bank on the security of the following properties:

(3.) Counter affidavit has been filed by 1st respondent and denied all the allegations made in the petition. It is contended that as per Sec.3 of the Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999 (Act No.17 of 1999), the Government have the power to pass orders of attachment of properties to safeguard the interests of the depositors. Hence, the G.O.Ms. No. 13 of 2016 passed by the 1st respondent is justifiable. It is further contended that, the petitioner bank filed the present petition to release the mortgaged property i.e., 6 properties mentioned as Sl.No.23, 24, 25, 26, 31 and 44 in Annexure-1 of G.O.Ms.No.13 from the order of attachment dtd.: 17/2/2016 enabling the bank to take necessary steps for recovery of the outstanding loan amount of Rs.17,33,58,913.01 together with interest from Keshava Reddy Group Societies/Institutions and Keshava Reddy @ Keshava Reddy and their Guarantors/mortgages. The accused Nagireddy Keshava Reddy @ Keshava Reddy raised mortgage loans by depositing the title deed of the properties already purchased from the funds deposited by the depositors. The object of the act is to protect the interest of the depositors.