IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE SIXTEENTH DAY OF DECEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO : 10756 of 2001 Between: 1 K. Jayarami Reddy S/o Tirupathi Reddy H.No.4/18-19, Brodipet, Guntur. 2 B. Pedda Dhanam S/o Pentaiah Tyallur, Pedakurapadu Mandal, Guntur District. 3 V. Manikyamma W/o Vemi Reddy Tyallur, Pedakurapadu Mandal, Guntur District. ..... PETITIONER(S) AND 1 The Cooperative Sub-Registrar/Sale Officer, Guntur District Cooperative Central Bank Ltd., Sattinapalli, Guntur District. 2 Guntur District Cooperative Central Bank Ltd., Rep. by its General Manager Guntur District. 3 The Deputy Registrar/Officer on Special Duty, The Guntur District Cooperative Central Bank Ltd., Tenali, Guntur District. .....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 to issue a Writ of Certiorari, or any other appropriate order or direction, calling for the records pertaining to the Certificate in Case No. 1145/1999-2000 issued under Section 71(1) of the Andhra Pradesh Cooperative Societies Act 7 of 1964, dt. 20-6-2000 issued by the 3rd Respondent under the signature of the 1st Respondent and the consequential Auction Notice scheduled to be held on 31-5-2001 issued by the 3rd Respondent in E.P.No.837/2000-01 and also the proceedings dt.31-5-2001 issued by the 1st Respondent postponing the said sale to 6- 6-2001 and quash the same as illegal, contrary to the provisions under Section 71(1) of the A.P.Cooperative Societies Act 7 of 1964, without jurisdiction and constitutional, by holding that the 2nd Respondent Bank Society cannot directly claim any loan amount extended to 75 Tyallur P.A.C.S. from the petitioner personally, and pass Counsel for the Petitioner:MR.T.SURYA KARAN REDDY Counsel for the Respondent No.: MR.VENKATESWARLU POSANI The Court made the following : THE HONOURABLE SRI JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO. 10756 OF 2001 ORDER: The petitioners challenge the certificate and recovery issued against him by the Co-operative Sub-Registrar under Section 71 (i) of the Andhra Pradesh Cooperative Societies Act in Case No. 1145/1999-2000 dated 20-6-2000. The petitioners contend that 1st petitioner is the Ex-President and petitioners 2 and 3 are the Ex-Directors of 75 Tyallur Primary Agricultural Cooperative Society Ltd., Tyallur. It is alleged that certain loan was obtained by the said society from the 2nd respondent Bank and on account of the default committed by the society the proceedings of recovery was taken up by the 2nd respondent. The certificate impugned herein as referred to above was issued by the Cooperative Sub-Registrar, Sale Officer seeking to proceed against the petitioners against the properties for recovery of the aforesaid land. A counter affidavit is filed on behalf of the Bank justifying their action on the ground that all the three petitioners have executed a promissory note on behalf of the society in favour of the 2nd respondent Bank and thereby the recovery proceedings were initiated against them and the impugned certificate has been rightly issued. I have heard the learned counsel for the petitioners and learned standing counsel for the Bank. It is nodoubt true, the said certificate relates to the recovery proceeding against the society. However, this certificate itself does not mention even the name of the society and issued against the petitioners herein as if they are personally liable. Further the learned counsel for the petitioner placed before this Court a subsequent proceedings, a report of the Enquiry under Section 52 conducted by the Deputy Registrar Cooperative Societies vide Rc.No. 516/99-B3, dated 19-4-2007. As per the conclusion therein, it was found by the said authority that there is no supporting evidence to prove any claims against the 1st petitioner and the proposed proceedings were dropped. Be that as it may, the 2nd respondent is seeking to recover its dues from the Cooperative society as mentioned above. The recovery proceedings against the society are entirely different from the recovery proceedings personally issued against the ex-office bearers. The petitioners personally have not borrowed or they are guarantors in their personal capacity. In view of the same, the action against the petitioners is not justified. However, the rights of the 2nd respondent to proceed against the society remain unaffected and this order does not affect any lawful action of 2nd respondent to proceed against the society and recover the dues as alleged. Subject to the above, this writ petition is disposed of. No order as to costs. ___________________________ Justice Vilas V. Afzulpurkar 16th December, 2008. KM THE HONOURABLE SRI JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO. 10756 OF 2001 16th December, 2008.