IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD MONDAY, THE TWENTY SECOND DAY OF DECEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE D.S.R.VARMA and THE HON'BLE MR JUSTICE G.CHANDRAIAH WRIT APPEAL No.1769 of 2008 AND WRIT PETITION No.25991 OF 2008 WRIT APPEAL NO : 1769 of 2008 (Writ Appeal under Clause 15 of the Letters Patent against the Order dated 27/11/2008 in WP NO : 25991 OF 2008 on the file of the High Court.) Between: P. Anjaneyulu, S/o. P. Narayana, R/o. Plot No. B-12, Industrial Estate, Madanapalle, Chittoor District. ..... APPELLANT AND 1 The Chairman, A.P. State Finance Corporation, Chirag Ali Lane, Hyderabad 500 001. 2 The Assistant General Manager, A.P. State Finance Corporation, Narasimha Tirtham Road, Balaji Colony, Tirupathi 517 502. 3 The Senior Branch Manager, A.P. State Finance Corporation, Narasimha Tirtham Road, Balaji Colony, Tirupathi 517 502. 4 Mr. Ravi Kumar, Assistant Deputy Manager, A.P. State Finance Corporation, Narasimha Tirtham Road, Balaji Colony, Tirupathi 517 502. .....RESPONDENTS Counsel for the Appellant: MR.V.R.REDDY KOVVURI Counsel for the Respondent No.: MR.M.S.RAMACHANDRA RAO AND WRIT PETITION NO : 25991 of 2008 Between: P. Anjaneyulu, S/o. P. Narayana, Hindu, R/o. Plot No. B-12, Industrial Estate, Madanapalle, Chittoor District. ..... PETITIONER AND 1 The Chairman, A.P. State Finance Corporation, Chirag Ali Lane, Hyderabad 500 001. 2 The Assistant General Manager, A.P. State Finance Corporation, Narasimha Tirtham Road, Balaji Colony, Tirupathi 517 502. 3 The Senior Branch Manager, A.P. State Finance Corporation, Narasimha Tirtham Road, Balaji Colony, Tirupathi 517 502. 4 Mr. Ravi Kumar, Assistant Deputy Manager, A.P. State Finance Corporation, Narasimha Tirtham Road, Balaji Colony, Tirupathi 517 502. .....RESPONDENT(S) 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 a Writ or direction more particularly one in the nature of Writ of Mandamus declaring the action on part of the respondents in proceeding with the sale pursuant to the notice issued by them in the news papers on 7-11-2008 as highly illegal, improper, unjust, arbitrary, violation of principles of natural justice and fundamental rights of the petitioner guaranteed under Article 14, 19, 21 of the Constitution of India and therefore to set aside the sale notice dt. 7-11-2008j issued by the respondents in the news papers in so far as the petitioners property is concerned which is mentioned in the item on 9 in the said sale notice and as a consequential direction, direct the respondents to discharge the petitioner from all his liabilities by closing of his loan account No. 53112318 and to pass appropriate orders. Counsel for the Petitioner: MR.V.R.REDDY KOVVURI Counsel for the Respondent No.: MR.M.S.RAMACHANDRA RAO The Court made the following : THE HON'BLE MR JUSTICE D.S.R.VARMA AND THE HON'BLE MR JUSTICE G.CHANDRAIAH WRIT APPEAL No.1769 of 2008 AND WRIT PETITION No.25991 OF 2008 ORAL COMMON JUDGMENT: (per the HON’BLE SRI JUSTICE D.S.R.VARMA) Heard both sides. 2. This Writ Appeal is directed against the interim order, dated 27.11.2008, passed by a learned single Judge of this Court, in W.P.M.P.No.34013 of 2008 in Writ Petition No.25991 of 2008. 3. The Writ Petition is filed to declare the action of the respondents in proceeding with the sale pursuant to the notice issued by them in the news papers on 7-11-2008 as highly illegal, improper, unjust, arbitrary, violative of principles of natural justice and fundamental rights of the petitioner guaranteed under Articles 14, 19 and 21 of the Constitution of India and therefore to set aside the sale notice, dated. 7- 11-2008, issued by the respondents, in the news papers, in so far as the petitioners property is concerned, which is mentioned in item No.9 in the said sale notice and for a consequential direction to the respondents to discharge the petitioner from all his liabilities by closing his loan Account No. 53112318. 4. The impugned order reads as under: “The respondents can proceed with the process of sale, but, however, it shall not be finalized until further orders, subject to condition of the petitioner depositing an amount of Rs.5,00,000/- (Rupees Five Lakhs only) with the respondent- Corporation within a period of three weeks from today. Notice.” 5. Learned counsel appearing for respondent No.1- the Andhra Pradesh State Finance Corporation submits that the Corporation is not going to act upon the sale proceedings, which were challenged in the said writ petition, for various reasons. However, they are going to initiate fresh proceedings under Section 29 of the State Financial Corporation Act, 1951, after following the due procedure prescribed under the law, therefore, and, in view of the said fact, no orders, in fact, need be passed in this writ appeal. 6. In view of the said submission and also in view of the decision taken by the first respondent, nothing remains to be adjudicated in the main writ petition and accordingly, the writ petition has become superfluous. 7. For the foregoing, suffice it to dispose of the writ appeal giving liberty to the respondents to initiate fresh proceedings, in accordance with law, after giving due opportunity to the appellant, who is the writ petitioner. Further, it is made clear that all the contentions that have been raised before the learned single Judge and that are likely to be raised before this Court in the present writ appeal are left open and the first respondent-the A.P. State Finance Corporation Limited would proceed strictly in accordance with law, uninfluenced by any of the observations or reasoning, if any, recorded by the learned single Judge, in the impugned order. 8. With the above observations, the Writ Appeal is disposed of and the Writ Petition No.25991 of 2008 is closed. However, there shall be no order as to costs. _____________________ JUSTICE D.S.R.VARMA ________________________ JUSTICE G.CHANDRAIAH 22nd December 2008 DR ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1 The Chairman, A.P. State Finance Corporation, Chirag Ali Lane, Hyderabad 500 001. 2 The Assistant General Manager, A.P. State Finance Corporation, Narasimha Tirtham Road, Balaji Colony, Tirupathi 517 502. 3 The Senior Branch Manager, A.P. State Finance Corporation, Narasimha Tirtham Road, Balaji Colony, Tirupathi 517 502. 4 2CD copies