IN THE HIGH COURT OF JUDICATURE OF ANDHRA PRADESH AT HYDERABAD THURSDAY, THE TENTH DAY OF FEBRUARY TWO THOUSAND AND ELEVEN PRESENT: THE HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION No.10856 OF 2007 Between: The Gram Panchayat, Pragathinagar, Quthbullapur Mandal, R.R.District, rep. by its Sarpanch. … Petitioner AND The District Collector (Panchayat Wing), Ranga Reddy District and three others. …Respondents This Court made the following: ORDER: The Gram Panchayat, Pragathinagar, Quthbullapur Mandal, Ranga Reddy District filed the present writ petition challenging the order dated 27-04-2007 issued by the Sub Treasury Officer, Medchal, Ranga Reddy District directing the State Bank of Hyderabad, Medchal Branch, Ranga Reddy District, fourth respondent herein, not to honour the cheques issued by the petitioner-Gram Panchayat. This direction was occasioned by the failure on the part of the petitioner-Gram Panchayat to remit the amount of Rs.2,25,00,000/- invested by it in Punjab National Bank into the Gram Panchayat, Pragathinagar account. 2. This Court, taking note of the fact that the administration of the petitioner-Gram Panchayat would be affected adversely as it would not be in a position to pay salaries, owing to the direction given to the fourth respondent-Bank, by order dated 30-05-2007, permitted the petitioner-Gram Panchayat to avail L.O.C from its account, under proper supervision, for the purpose of paying salaries to its employees and for other expenses. 3. The Sub Treasury Officer, Medchal, Ranga Reddy District, the third respondent, filed W.V.M.P.No.1940 of 2007 to vacate the stay order. With the consent of the counsel appearing on either side, the writ petition itself is taken up for disposal. 4. It is stated by Sri A.Prabhakar Rao, learned counsel for the petitioner-Gram Panchayat, that the amount in question, being the sum of Rs.2,25,00,000/- invested in a fixed deposit in Punjab National Bank, was thereafter remitted to the Hyderabad Metropolitan Water Supply and Sewarage Board for the purpose of laying drinking water pipe lines. In that view of the matter, the dispute as to whether the Gram-Panchayat was within its rights in investing the said amount in a fixed deposit in the nationalized bank becomes purely academic. As the amount itself is not available, there is no necessity for this Court to adjudicate the issue. The issue is however left open for decision in an appropriate case. 5. The writ petition is accordingly closed. There shall be no order as to costs. ____________________ SANJAY KUMAR, J 10th February, 2011. AMD/KVS