IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY SECOND DAY OF FEBRUARY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE DR JUSTICE G.YETHIRAJULU WRIT PETITION NO : 9875 of 2004 Between: 1 The District Cooperative Central Bank Ltd. Cuddapah rep.by its General Manager C.Mohan Reddy, S/o C.Rama Subba Reddy, R/o Cuddapah, Cuddapah District. 2 The Special Cadre Deputy Registrar / Officer on Special Duty, District Cooperative Central Bank Ltd. Cuddapah. ..... PETITIONERS AND 1 Proddatur Milk Producers Union Ltd. No.260770, Proddatur, Nandyal rep.by its General Manager/Liquidator, Cuddapah District. 2 The A.P.Dairy Dev. Co-op.Federation Ltd. Lalapet, Hyderabad rep.by its Managing Director. .....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 not taking any action for repayment of dues to the Bank in pursuance of proceedings vide Rc.No.DEV/Non/Agrl/96-97 dated 10-5-2002 and Rc.No.21/Legal Section/ 2001-02, dated 2-1-2003 of the petitioners for realization of EP No. 764/96-97 as arbitrary, illegal, unjust and unconstitutional and consequently direct the 1st respondent to take immediate steps for repayment of dues to the petitioner's bank, in the interest of justice Counsel for the Petitioner:SMT.KAVITHA GOTTIPATI Counsel for the Respondent : MR.N.RAJESWAR RAO FOR RVAK-1 The Court made the following : ORDER: This writ petition is filed by the petitioners seeking to declare the action of the respondents in not taking any action for repayment of the dues to the bank in pursuance of the proceedings, dated 10-05-2002 and 02-01-2003 of the petitioners for realization of the amount under E.P.No.764/96-97 as arbitrary, illegal, unjust and unconstitutional and consequently to direct the respondents to take immediate steps for repayment of the dues to them. The petitioners contended that the first respondent took a loan from D.C.C. Bank, Proddatur and repaid part of the amount. Subsequently, the bank filed E.P.No.764/96-97 before the second petitioner for realization of the amount with interest. Afterwards, the first respondent union was liquidated vide proceedings, dated 09-09-1997 and the liquidator was also appointed. In the meantime, the petitioners herein have appointed one Mr. M.V. Prabhakar Rao as Sale Officer and he was authorized to execute the above E.P. on 26-07-2000. Since that date onwards, the said Sale Officer and the bank is being regularly communicating and corresponding the first respondent union to look into the matter at the earliest, but the first respondent has not taken any action in this matter. The liquidator of the first respondent union has addressed a letter to the Milk Commissioner and Registrar of Milk Societies, Hyderabad for permission to sell Lands, Buildings, Plant and Machinery to discharge the liabilities of the first petitioner bank. The first respondent has issued a paper Publication in Eenadu for conducting of public auction relating to its properties on 23-05-2002. The petitioners addressed a letter to the first respondent to remit Rs.68.90 lakhs towards the amount due to the bank after realization of the amount from the said auction. The petitioners, therefore, request that necessary directions be given to the respondents to take immediate steps to safeguard the interests of the bank and to proceed with the auction for realization of the amount. The first respondent liquidator in the counter mentioned that he has received several claims against the society and he has to consider the claims as per the priority. But the conducting of the auction of the property has nothing to do with the consideration of the claims. The first respondent liquidator, having taken steps to bring the properties for sale, stopped further proceedings for the best reasons known to him. He has to put the properties for auction and if there are no bidders, he has to re-notify for sale on a further date. But the effort shall be done to see that the property shall be disposed of and the amount was realized. After realization of the amount only, the liquidator has to consider the claims of the respective persons and pass appropriate orders according to law. In the light of the above circumstances, the writ petition is allowed. The first respondent liquidator is directed to take necessary steps to proceed with the sale of E.P. schedule properties for realization of the amount and then he shall consider the claim of the petitioner along with other claims as per the scheme or law whatever that is applicable and disburse the amount accordingly. No order as to costs. ___________________ DR. G. YETHIRAJULU, J Date:22-02-2008 YCR ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1. The General manager/Liquidator, Proddatur Milk Producers Union Ltd. No.260770, Proddatur, Nandyal, Cuddapah District. 2. The Managing Director, A.P.Dairy Dev. Co-op. Federation Ltd. Lalapet, Hyderabad. 2. 2CD copies Form-NIC-OGS/WP{VSR}