IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD FRIDAY, THE THIRTIETH DAY OF JANUARY TWO THOUSAND AND NINE PRESENT THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE C.V.NAGARJUNA REDDY WRIT APPEAL NO : 52 of 2009 (Writ Appeal under Clause 15 of the Letters Patent against the Order dated 29/12/2008 in WP NO : 28697 OF 2008 on the file of the High Court.) Between: M/s. Sumanth Engineering Pvt. Ltd. Having it's registered office 26/1/1004 B.V.Nagar, N.G.O.Colony, Nellore -4, rep. by its Manaing Director, A.Prasanthkumar Reddy S/o. A.Raja Babu Reddy ..... APPELLANT AND 1 The Goverment of Andhra Pradesh, Rep. by its Principal Secretary, Department of Industries, Secretariat, Hyderabad 2 The Commissioner of Industries Department of Industries Government of A.P., Chirag Ali Lane, Abids, Hyderabad. 3 A.P.State Financial Corporation, Rep. by it's Managing Director. Chirag Ali Lane, Hyderabad - 500 001 4 The Branch Manager, A.P. State Financial Corporation, A.P.Industrial Estate, A.K.Nagar, Nellore-4, S.P.S.R.Nellore District. 5 The Authorized Officer, A.P.State Financial Corporation, Chirag Ali Lane, Hyderabad - 500 001 .....RESPONDENTS Counsel for the Appellants: SRI P.SRIDHAR REDDY Counsel for the RespondentS.: GP FOR INDUSTRIES & COMMERCE The Court made the following : THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE C.V.NAGARJUNA REDDY WRIT APPEAL NO : 52 of 2009 JUDGMENT: (per Hon’ble Smt. Justice T. Meena Kumari) Aggrieved by order, dated 29.12.2008 in WAMP No.37554 of 2008 in WP No.28697 of 2008, the present writ appeal is filed by the appellant-petitioner. The appellant herein filed the above writ petition seeking to declare the action of the 3rd respondent in canceling the rehabilitation package sanctioned on 3.1.2007 unilaterally without notice to the petitioner and without providing any opportunity as communicated by the 3rd respondent-corporation vide letter AFC/OPD-V/2008-09, dated 28.5.2008, as illegal and arbitrary. Along with the writ petition, the appellant-writ petitioner also filed the above WAMP seeking stay of all further proceedings pursuant to the notice issued by the 5th respondent in his proceedings No.144365, dated 3.11.2008, pending the above writ petition. The learned Single Judge has passed the following order in the above WPMP: “There shall be interim stay as prayed for, subject to the condition the petitioner deposits a sum of Rs.25,00,000/- (Twenty Five Lakhs only) within a period of one month from today and another sum of Rs.25,00,000/- (Rupees Twenty Five Lakhs only) within one month thereafter. In default of any of the amounts within the aforesaid time, the interim stay granted shall stand vacated automatically, without further reference to the Court and the respondents will be at liberty to proceed further in the matter.” Having been aggrieved by the conditions imposed by the learned Single Judge while granting interim stay, the appellant-writ petitioner filed the present writ appeal. Sri N. Subba Reddy, learned Senior Counsel appearing for the appellant has submitted that the appellant is not in a position to deposit the said amount and the order under appeal is bad for the reason as no prior notice has been issued before canceling the rehabilitation package sanctioned on 3.1.2007 and therefore, it amounts violation of the principles of natural justice. On the other hand, Sri M.S. Ramachanchandra Rao, the learned Standing Counsel for the State Financial Corporation, submitted that the appellant has failed to clear the principal amount as well as the interest in terms of rehabilitation package, and hence, the respondents-authorities were forced to cancel the rehabilitation package. The present appeal has been preferred being aggrieved by the conditions imposed by the learned Single Judge while granting the interim relief. Therefore, the relief that is sought for in this appeal, is purely confined to the imposition of the conditions while granting the interim stay. Even otherwise, the question as to the justification of the cancellation proceedings is a matter to be decided in the main writ petition and the opinion expressed, if any, at this juncture, is likely to have a bearing on the merits of the writ petition. Keeping in view the submission of the learned standing Counsel for the respondents that possession of the unit was taken over on 29.1.2009 and to balance the interests of both parties, we modify the interim order passed by the learned single Judge to the effect that the appellant shall pay an amount of Rs.5,00,000/- immediately on or before 9.2.2009. On receipt of the said amount, the possession should be handed over to the appellant by the respondents. It is further ordered that another sum of Rs.10,00,000/- shall be paid by the appellant within a period of six weeks thereafter. In default, the respondents are entitled to proceed in accordance with law. With the above directions, this writ appeal is disposed of. No order as to costs. ________________________ Justice T. Meena Kumari ___________________________ Justice C.V. Nargarjuna Reddy Dated: 30.1.2009 Nn. THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE C.V.NAGARJUNA REDDY WRIT APPEAL NO : 52 of 2009 (Judgment delivered by the Hon’ble Smt. Justice T. Meena Kumari) 30th January, 2009