CHALAMANI NARASA REDDY Vs. COLLECTOR OUGOLE

JUDGEMENT

(1.) the petitioner seeks a writ of mandamus restraining the d'strict collector, prakasam district, ongole, the 1st respondent herein, from enforcing the recovery notice dated july 30, 1986 issued under Section 52-a of the a.p. revenue recovery act.

(2.) the relevent format in brief based on the affidavits of the petitioner as well as in opposition is : m/s. Mahavikra dies limited, vijayawada the 3rd respondent herein, was prompted as joint venture with 50% of shares by the andhra pradesh industrial development corporation (apidc), the 2nd respondent herein, and the rest by the promoters. It was commenced in the year 1979 and went into production in 1982 for producing pure benjanthrone, vat pase green ffb and so forth. The equity share capital was to the tune of Rs. 25 lakhs. The petitioner, one of the promoters, holding equity share capital of Rs. 19,000/-, was elected as one of the directors of the company in 1979 and continued till december 20 1984, on which he resigned and the same was accepted by the board. The 2nd respondent nominated five directors to the board including the chairman whereas the promoters were represented by the five directors.

(3.) the 2nd respondent advanced in addition to its share capital, term loan to ths extent of Rs. 24.06 lakhs and temporary loan demand of Rs. 3 lakhs. Similarly the andhra pradesh state financial corporation (apsfc) advanced a term loan of Rs. 30 lakhs to the government. In respect of term loan due to apsfc, the 3rd respondent factory was seized and consequently brought to sale by inviting sealed tenders. No one however had come forward.