IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE FIFTH DAY OF MARCH TWO THOUSAND AND NINE PRESENT THE HON'BLE MR JUSTICE N.V. RAMANA WRIT PETITION NO : 4551 of 2009 Between: 1.Devara Rohit S/o.Late Devara Udaya Bhaskara Vinoda Rao Resident of 21-129, Aswaraopeta Road Jangareddygudem town and Mandal West Godavari District 2.Devara Raja Rao S/o.Devara Vukkakki Resident of 21-129, Aswaraopeta Road Jangareddygudem town and Mandal West Godavari District 3.Devara Ravi Kumar S/o.Devara Prasada Rao Resident of 21-129, Aswaraopeta Road Jangareddygudem town and Mandal West Godavari District 4.K.Kamala Kumari W/o.K.Raja Rao R/o.1st Shayamalnagar, Guntur District ..... PETITIONERS AND 1 The AP State Financial Corporation, rep.by its Branch Manager, Opp:S.P.Office, Narasimha Rao Pet Eluru, West Godavari District, 534006 2 The Tahsildar,Jangareddygudem, of West Godavari District .....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 declare the proceedings of Respondents under section 29 and 32 of State Financial Corporation Act as illegal, arbitrary, and without jurisdiction and to quash the proceedings Respondent No.1 proposing to sell Ac.2.00 of land in Survey No.368/4 Laxmipuram village, Jeelugumilli Mandal, and consequential proceedings of the 2nd respondent attaching property of the petitioners bearing No.21-129, Ashwaraopet Road, Jangareddygudem belonging to the petitioners jointly by issuing a writ in the nature of mandamus or any other appropriate writ or order or direction. Counsel for the Petitioner: MR.S.SURYA PRAKASA RAO Counsel for the Respondents: M.S.RAMCHANDRA RAO(SC FOR A.P.S.F.C) The Court made the following ORDER: THE HON'BLE SRI JUSTICE N.V. RAMANA Writ Petition No.4551 of 2009 Order: The petitioners are four in number. The first petitioner is the son of one late Sri Dub Vinoda Rao, while petitioner Nos.2 to 3 are brothers and sisters of the said Dub Vinoda Rao. According to the first petitioner, his father availed a loan of Rs.4,20,000/- for purchase of a company on 23.09.1985 in an auction conducted by APSFC. He paid an amount of Rs.60,000/- and the balance remained unpaid. While so, he states that he received a notice, dated 01.11.2008, from the second respondent demanding a sum of Rs.1,97,61,324/- with further interest from 01.11.2008. Thereafter, the first respondent issued a paper publication for sale of land in an extent of Acs.2.00, while the second respondent issued notice of attachment of house bearing Door No.21-129 situated at Aswaraopet, Jangareddygudem. The petitioners state that they have no idea about the outstanding loan amount and that respondent Nos.1 and 2 are not justified in seeking to attach the property and put the same to public auction, particularly when they were not offered as security for the loan amount. Heard the learned counsel for the petitioners, the learned Standing Counsel for the first respondent and the learned Government Pleader for Revenue appearing for the second respondent. According to the own admission of the petitioners, the father of the first petitioner had taken loan from the first respondent for purchase of a company. He has taken the said loan in the year 1985. Since then it appears, he has not paid the same. Therefore, the respondents sought to sell the properties by attaching the properties which were offered by the loanee towards security. The fact that the said properties were offered as securities is evident from the tender notification issued by the respondents where the father of the first petitioner, who is the loanee, is shown a security holder. Since the loan amount was not paid, no exception can be taken to the action of the respondents in attaching the properties in question and seeking to sell the same for realization of the loan amount. There are no merits in the writ petition and the same is accordingly dismissed. No costs. ___________________ N.V. RAMANA, J. Date: 05.03.2009 VGB