THE HON’BLE MR JUSTICE L. NARASIMHA REDDY Writ Petition No.6448 of 2011 ORDER: The petitioner states that he has taken on lease, two mulgies, in premises bearing Nos.18-9-222/A & B from its owner, Abdul Khader Quledi, and established a rice retail stores with effect from 01-02-2011. According to him, he stocked rice worth Rs.7 lakhs and doing business, duly obtaining licence from the authorities of the Commercial Tax Department. The respondents seized the stock under possession notice dated 04-03-2011, stating that the stock belongs to M/s Seshasai Rice Industries, who have obtained loan from them, and committed default. The petitioner challenges the action of the respondents. It is stated that the rice stored in the shops exclusively belongs to him, and there was no justification for the respondents in seizing the stock. Heard the learned counsel for the petitioner and learned counsel for the respondents. The petitioner filed an agreement of lease, which is to the effect that the premises were taken on lease, by him, in February, 2011. He does not have any loan transaction with the respondents. If the matter is as simple as that, the seizure effected by the respondents cannot be sustained in law. However, the material placed before this Court, by the respondents, discloses that M/s Seshasai Rice Industries had obtained loan from them, and for repayment thereof, it offered security, in the form of the premises in the rice mill at Mangalpally cross roads, and a retail outlet in premises bearing No.18-9-222/B, of Chandrayana Gutta. The stock of rice in the premises was hypothecated, and a policy of insurance was also obtained from M/s United India Insurance Company Limited. It is just ununderstandable as to how the petitioner took the same premises on lease. These however are matters, which need to be resolved in due course of time. The continued seizure of the rice would not be any help to the respondents also. The worth of the stock is said to be around Rs.6 lakhs. The interest of the parties can be protected by directing that the same be released on deposit of a sum of Rs.3 lakhs. Hence, the writ petition is disposed of, directing that the respondents shall release the seized stock of the petitioners on payment of Rs.3,00,000/- (Rupees three lakhs). There shall be no order as to costs. ________________________ L. NARASIMHA REDDY, J. Dt.22-03-2010. KO