IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE TWENTY FIFTH DAY OF JUNE TWO THOUSAND AND NINE PRESENT THE HON'BLE MR JUSTICE R.SUBHASH REDDY WRIT PETITION NO : 20946 of 2003 Between: 1 B. Venkatesam S/o B. Krishna R/o 18-9-124, Chandrayangutta, Hyderabad. 2 Sanjay Lahuti S/o Lakshmi DeMivas Lahuti R/o 22-2-122, Darulshifa, Hyderabad. 3 M. Santosh Kumar S/o M. Bheeshma Dav R/o 18-5-35, Qutside Aliyabad, Hyderabad. 4 Krishna S/o B. Lakshminarayana, R/o 22-3-276, Mirchowk, Hyderabad. ..... PETITIONERS AND 1 Andhra Pradesh State Financial Corporation Rep by its Managing Director, Chirag Ali Lane, Hyderabad. 2 Asst. General Manager, A.P. State Financial Corporation Chirag Ali Lane, Hyderabad Ranga Reddy, Eastbranch. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue an appropriate Writ, order or direction, more particularly one in the nature of Writ of Mandamus, declaring the action of the Respondents in confirming the alleged sale of the Mortgage Property vide Plots No. 526/A, an extent of 302 square yards, 527/A an extent of 331.88 sq yards and Plot No. 471 extent of 321.88 square yards situated at Mylardeverpally, Rajendernagar Mandal, RR District in the name of the third parties published in RENDU on 5-5-2003 for leaser price towards the discharge of loan amount as arbitrary, malafide, illegal and liable to be set saide and consequently direct the Respondents not to confirm alleged sale of the Properties bearing Plot Nos. 526/A an extent of 302 Square yards, 527/A an extent of 331 square yards and Plot No. 471 an extent of 321.88 square yards situated at Mylardeverpalli, Rajendranagar Mandal, RR District for the recovery of loan amount. Counsel for the Petitioner: MR.Y.ASHOK RAJ Counsel for the Respondents: MR.M.S.RAMACHANDRA RAO The Court made the following : Order: This writ petition is filed seeking Mandamus declaring the action of the A.P. State Financial Corporation in confirming the sale of mortgaged property belonging to the petitioners, bearing Plot No.526/A, admeasuring 302 square yards, Plot No.527/A admeasuring 331.88 square yards and Plot No.471 admeasuring 321.88 square yards, situated at Mylardeverpally, Rajendranagar Mandal, Ranga Reddy District, as illegal and arbitrary. 2. The A.P. State Financial Corporation has sanctioned a loan of Rs.4,48,000/- in favour of the petitioners on 01-08-1992 to establish a cotton-seed oil unit. Out of the sanctioned loan amount, a sum of Rs.2,41,980/- was released on 05-10-1994. After establishing the unit, the unit fell sick; as such, they could not repay the loan amount. Initially, an opportunity was given to the petitioners to settle the loan amount on one-time settlement basis and a letter dated 16-09-2002 was addressed to them. As there was no response from the petitioners to the letter referred above, respondents have proceeded further and issued Recall-cum-Sale notice. Thereafter, the machinery and mortgage property, which was given as collateral security, was seized. Subsequently, the said properties were sold by issuing necessary advertisement. This court passed interim orders on 26-09- 2003 not to confirm the sale, if not already confirmed. 3. In the counter affidavit filed on behalf of the respondents, it is stated that pursuant to advertisement dated 05-05-2003, there was only one offer from Mr. M.A. Sattar, offering a sum of Rs.3.87 lakhs, and the same was accepted and consequently the sale was confirmed by issuing letter dated 16-05-2003 and, on remitting the entire consideration amount, the possession of the collateral security was handed over to the purchaser by executing registered sale deed on 16- 06-2003. 4. In spite of the fact that respondents have furnished particulars of the collateral securities, no steps have been taken by the petitioners for impleading the said purchaser as a party. 5. As much as the properties were already sold to third party by the respondent-corporation, on account of default committed by the petitioners in repaying the loan amount and the properties were also registered in the name of the third party, no relief can be granted in the present writ petition, in the absence of making the said purchaser as a party to this writ petition. 6. For the aforesaid reasons, the writ petition is liable to be dismissed and is accordingly dismissed. No order as to costs. _________________________ R. SUBHASH REDDY, J. June 25, 2009 Skmr/MRR