Allowed

D N v. Prasad v the State of Ap

Andhra Pradesh HC14 Mar 2024WP/2340/2024

Case brief

AI extract

What is this about?

The High Court of Andhra Pradesh allowed a writ petition. The Court set aside coercive attachment orders under Section 73 of the AP Co-operative Societies Act because the requisite notice under the same section was not served to the petitioner before the orders took effect.

What did the court decide?

Set aside the impugned attachment orders dated 10.04.2023. Liberty to issue fresh notice under Section 73 of the APCS Act.

D N v Prasad Vs the State of Ap — Cooperative Societies | Andhra Pradesh HC (2024)

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APHC010040032024

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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

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[3333]

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(Special Original Jurisdiction)

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FRIDAY ,THE FIFTEENTH DAY OF MARCH TWO THOUSAND AND TWENTY FOUR

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PRESENT

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THE HONOURABLE SMT JUSTICE V.SUJATHA

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WRIT PETITION NO: 2340/2024

Between:

D N V Prasad

...PETITIONER

AND

The State Of Ap and Others

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...RESPONDENT(S)

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Counsel for the Petitioner:

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1.YASWANTH GADE

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Counsel for the Respondent(S):

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1.GP FOR COOPERATION (AP)

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2.SURAGANI VIJAYA KUMAR

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The Court made the following:

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ORDER:

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This Writ Petition is filed challenging the order in R.C. No.6/2023 dt.10.04.2023 passed by the 4^th respondent by attaching the properties annexed to the said order and prohibiting from alienation of the said property as highly illegal, arbitrary and consequently to set aside the same.

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Heard learned counsel for the petitioner, learned Government Pleader for Cooperation appearing for the respondents 1 to 3 and Mr.S.Vijay Kumar, learned Standing Counsel appearing for the respondent No.4.

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The case of the petitioner, in brief, is that the petitioner is the ExPresident of the Bhogeswara Swamy Large Seized Cooperative Credit Society Ltd.No.4876, Pothunuru, Denduluru Mandal and has been discharging his duties to the satisfaction of one and all. While so, at the intervention of local political leaders an inquiry under Section 51 of the A.P.C.S. Act was ordered into the affairs of the Society vide proceedings dated 11.11.2019 by the District Cooperative Officer. There after the Enquiry Officer also submitted his report, however, a copy of the same was not furnished to the petitioner.

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While things stood thus, the 4^th respondent vide his order in Rc.No.6/2023 dated 10.04.2023 attached all the petitioner’s immovable properties, annexed to the said order by invoking the power under Section 73 of the Andhra Pradesh Co-operative Societies Act, 1964 [for short APCS Act, 1964] stating that the District Cooperative Officer vide his proceedings dated 04.04.2023 informed that an enquiry under Section 51 of the APCS Act was ordered into the affairs of the Pothunnuru LSCS Ltd.; as per the enquiry report, an amount of Rs.1.47 crores was misappropriated and he was authorized to take action for conditional attachment of properties of the petitioner under Section 73 of the said Act.

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The main grievance of the petitioner is that though the impugned notice dated 10.04.2023 under Section 73 of the APCS Act, 1964 was referred at Sl.No.2 of the order, it was not served on the petitioner. Moreover, the impugned notice as well as the attachment orders were passed on the very same day i.e., 10.04 2023. Challenging the same, the petitioner has filed the present Writ Petition.

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The respondent No.4 filed detailed counter reiterating the facts stated by the petitioner, however, it is submitted that there is no legal embargo to issue Notice of attachment and Order of attachment, simultaneously, when there is an immediate threat of disposal of the

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properties of the parties to be attached. Further, it is submitted that the petitioner is always at liberty to submit adequate sureties and get the order of attachment either revoked or modified, even at a subsequent stage. However, they have raised a ground stating that the petitioner instead of availing the effective remedy available under Section 76 of the APCS Act, 1964, approached this Court.

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On perusal of the impugned notice dated 10.04.2023, it is clear that admittedly both the notice under Section 73 of the APCS Act as well as the attachment orders are issued on the very same day i.e., on 10.04.2023. It is also the case of the petitioner that the said notice was also not served on him. If at all said notice was served on the petitioner, the petitioner would have furnished the sureties before the attachment orders are passed. In view of the fact that the impugned notice under Section 73 of the APCS Act as well as the attachment orders are passed on the very same day, the petitioner could not avail the opportunity of furnishing his sureties before the attachment orders are passed, this Court feels it appropriate to set aside the impugned attachment orders dated 10.04.2023.

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Accordingly, the Writ Petition is allowed, by setting aside the impugned attachment orders dated 10.04.2023, however, the respondents are at liberty to issue fresh notice on the petitioner under

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Section 73 of the APCS Act 1974 enabling the petitioner to furnish fresh sureties, if any. On receipt of such notice, the petitioner is at liberty to furnish sureties. There shall be no order as to costs.

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As a sequel, miscellaneous applications pending, if any, shall also stand closed.

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__________________________ SMT JUSTICE V. SUJATHA

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Dated 15.03.2024 Pnr

D N v. Prasad v the State of Ap

Case brief

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D N v. Prasad v the State of Ap

Case brief

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