IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE FOURTH DAY OF JUNE TWO THOUSAND AND NINE PRESENT THE HON'BLE MR JUSTICE C.V.NAGARJUNA REDDY WRIT PETITION NO : 22798 of 2007 Between: 1 M/s. Vahini Finance And Chits Private Limited, Mahabubnagar, rep. by its Managing Director Sri.P.Indrasena Reddy, S/o.P.Raghava REddy Aged about 41 years, Occupation: Business, R/o. Plot No.201, Swathi Apartments, Bhageeratha Colony Mahabubnagar. 2 P.Janardhan Reddy S/o.P.Anantha Reddy R/o.H.No.23,, Ind Estate, Mahabubnagar. 3 B.Chandra Shaker Gupta S/o.B.Lingaiah R/o.H.No.4-10-42/A, Ramnagar, Mahabubnagar. 4 M.Ananth Reddy S/o.M.Bheem Reddy R/o.8-3-22/3, Metugadda Mahabubnagar. 5 A.Vishwanath S/o.A.Panchaxari R/o.1-4-134/9A,, Metugadda Mahabubnagar. 6 A.Surekha W/o.A.Vishwanath R/o.1-3-134/9A,, Metugadda Mahabubnagar. 7 K.Venugopal Goud S/o.Late K.Linganna Goud R/o.Venkatratnam Colony, Mahabubnagar. 8 L.RAvi Kumar S/o.Petter R/o.P.No.67, Bhagiratha Colony, Mahabubnagar. 9 S.Janardhan Reddy S/o.Venkat Reddy R/o.4-87, Bhagiratha Colony, Mahabubnagar. 10 S.Kalavathi W/o.S.Janardhan Reddy R/o.4-87, Bhagiratha Colony, Mahabubnagar. 11 P.Archana W/o.Srinivasa Chary R/o.4-10-62, Ramnagar, Mahabubnagar. 12 P.Srinivasa Chary S/o.Srihari R/o.4-10-62, Ramnagar, Mahabubnagar. 13 P.Janaki W/o.P.Balakrishna Reddy C/o. Mahabubnagar Grammar School, Bhagiratha Colony, Mahabubnagar. 14 P.Balakrishna Reddy S/o.P.Raghava Reddy C/o. Mahabubnagar Grammar School, Bhagiratha Colony, Mahabubnagar. ..... PETITIONERS AND 1 The Government of Andhra Pradesh, rep. by its Principal Secretary, Home (Genl.B) Department, Secretariat Buildings, Hyderabad. 2 The Magistrate and District Collector-cum-Competent Authority under Andhra Pradesh Protection of Depositors Financial Establishment Act, Mahabubnagar. 3 The Circle Inspector of Police, Rural Police Station, Mahabubnagar. 4 Vahini Finance and Chit Funds Depositors Association rep. by its President Sri. K.Venkat ram Reddy, Mahabubnagar. .....RESPONDENTS Counsel for the Petitioners: MR.P.R.PRASAD Counsel for Respondent Nos.1 to 3: GP FOR HOME Counsel for Respondent No.4: ----- The Court made the following : ORDER: In this Writ Petition, petitioner Nos.2 to 14, who were the Directors of petitioner No.1-Company, have felt aggrieved by the inaction of respondent Nos.2 and 3 in passing appropriate orders for implementation of settlement arrived between the petitioners and depositors. Though notice was served on respondent No.4- Association, there is no appearance entered on their behalf. At the hearing, Sri P.R.Prasad, learned Counsel for the petitioners, submitted that there were, in all, 655 depositors and that in pursuance of earlier orders passed by this Court in W.P.Nos.19614 and 20529 of 2004 and consequential order passed by the Special Court, 38% of the amount was paid to the depositors. He further submitted that subsequently, the entire deposited amounts were paid to 650 depositors in full and final settlement following the understanding arrived at between the depositors and the Management of petitioner No.1- Company. He also stated that only five depositors remain to be paid the deposited amounts as per the settlement, which comes to Rs.5,20,000/-, and that as against the said amount, a sum of Rs.6,50,000/- is available in deposit with petitioner No.1-Company and that the said deposit amount is seized by respondent No.2. The learned Counsel further submitted that since full and final settlement has been arrived at and only five depositors are required to be paid, appropriate directions may be given to respondent No.2 to disburse the amounts payable to the said five depositors to enable petitioner Nos.2 to 14 to get their securities released. These submissions of the learned Counsel for the petitioners were not opposed by any of the respondents. Therefore, respondent No.2 is directed to ascertain whether, in pursuance of the purported settlement arrived at between petitioner No.1 and the depositors, all the deposited amounts were paid to the depositors numbering 650 and only five depositors remained unpaid. Respondent No.2 shall ensure that these depositors shall also be paid all their deposit amounts in terms of the purported settlement between petitioner No.1 and the depositors. He shall complete this exercise within a period of eight weeks from the date of receipt of a copy of this order. Till the above exercise is completed, respondent Nos.2 and 3 shall not take any coercive steps against petitioner Nos.2 to 14. The Writ Petition is, accordingly, disposed of. As a sequel to disposal of the Writ Petition, interim order dated 30-10-2007 is vacated and WPMP.No.29647 of 2007 is dismissed. ___________________________ (C.V.NAGARJUNA REDDY, J) 4th June, 2008 LUR