K. Balarama Sarma, Vs Andhra Bank — Banking and Recovery | Andhra Pradesh HC (2025)

K. Balarama Sarma, Vs Andhra Bank — Banking and Recovery | Andhra Pradesh HC (2025)

What the court decided

AI extract

Outcome

Permission to withdraw the writ petition granted; petition dismissed as withdrawn with no order as to costs; pending interlocutory applications closed.

Issue for consideration

Whether the petitioners' loan account bearing no. 0606301000022975 with the 1st respondent bank stood covered by insurance of the respondents as per Circular No. 041, Ref No. 51/05 dated 20.05.2010, such that the 3rd respondent insurer would discharge the liability and the 1st respondent bank would be restrained from coercive recovery including under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. (Raised in the prayer; not adjudicated, as the petition was withdrawn.)

Ratio / Principle

Permission having been accorded to withdraw the writ petition, the Writ Petition is dismissed as withdrawn.

Key takeaways

There shall be no order as to costs.ratio¶40
As a sequel thereto, interlocutory applications pending, if any, in the Writ Petition shall also stand closed.ratio¶41-42

Detailed headnote1 paragraphs

Writ petition (W.P. No. 27185 of 2016) under Article 226 of the Constitution of India before the High Court of Andhra Pradesh at Amaravati, filed by K. Balarama Sarma and K. Santha Kumari, sought a writ of mandamus declaring that their loan account bearing no. 0606301000022975 with Andhra Bank stood covered by insurance of the respondents as per Circular No. 041, Ref No. 51/05 dated 20.05.2010, directing the 3rd respondent, M/s India First Life Insurance Company, to pay the liability on the loan availed by the petitioners and their deceased son (Customer ID No. 34384906), and restraining the 1st respondent bank from coercive recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. Related applications: I.A. No. 1 of 2016 (WPMP No. 33678 of 2016) for interim restraint of coercive recovery steps, and I.A. No. 1 of 2017 (WVMP No. 2864 of 2017) seeking vacation of the interim order passed on 12-8-2016. Before the Honourable Sri Justice Challa Gunaranjan, learned counsel for the petitioners, by letter dated 13.11.2025 to the Registry, sought permission to withdraw the writ petition. Permission was accorded and the writ petition was dismissed as withdrawn on 19.11.2025, with no order as to costs; interlocutory applications pending, if any, were directed to stand closed. No issue on the merits was adjudicated.

APHC010108082016

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

(Special Original Jurisdiction)

[3506]

WEDNESDAY,THE NINETEENTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY FIVE

PRESENT

THE HONOURABLE SRI JUSTICE CHALLA GUNARANJAN WRIT PETITION NO: 27185/2016

Between:

K. BALARAMA SARMA,, S/O LATE RAMA RAO, R/O 4210-8, OPP. GANGANAMMAS TEMPLE, DABAKOTULLA BAZAR, SINGH NAGAR, VIJAYAWADA.

K. SANTHA KUMARI,, W/O BALARAMA SARMA, R/O 4210-8, OPP. GANGANAMMAS TEMPLE, DABAKOTULLA BAZAR, SINGH NAGAR, VIJAYAWADA

...PETITIONER(S)

AND

ANDHRA BANK, REP. BY ITS GENERAL MANAGER, HEAD OFFICE, 5-9-11, DR. PATTABHI BHAVAN, SECRETARIAT ROAD, SAIFABAD, HYDERABAD - 500004.

ANDHRA BANK, REP. BY ITS GENERAL MANAGER, MAIN BRANCH, R.R.APPARAO STREET, I TOWN, VIJAYAWADA - 520001.

M/S INDIA FIRST LIFE INSURANCE COMPANY, REP. BY ITS AUTHORISED PERSON, 'B' WING, THE QUBE, INFINITY PARK, DINDOSHI - FILM CITY ROAD, MALAD (EAST), MUMBAI - 400097

2

...RESPONDENT(S):

Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased toto issue a Writ of Mandamus or any other appropriate writ or order or direction declaring: a. That the Petitioners loan account with the 1st Respondent Bank bearing no. 0606301000022975 stood covered with the insurance coverage of the Respondents herein as per Circular No. 041, Ref No. 51/05 dated 20.05.2010 and consequently direct that the liability hi the said Loan Account bearing No. 0606301000022975 of the Petitioners will be paid by the 3rd Respondent and also direct the 1st Respondent Ban not to take any steps either coercive or otherwise, either under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise for recovery of the said loan availed by the Petitioners and their deceased son through their Loan Account Bearing No. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 with Customer ID No. 34384906

IA NO: 1 OF 2016(WPMP 33678 OF 2016

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to issue interim directions, directing the 1st Respondent not to take or initiate any coercive steps against the Petitioner for recovery of and in respect of the loan availed by the Petitioner under the loan account bearing no. 0606301000022975 pending disposal of the above Writ Petition

IA NO: 1 OF 2017(WVMP 2864 OF 2017

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to vacate the Interim passed in W.P. No. 27185/2016 dated 12-8-2016 and pass

3

Counsel for the Petitioner(S):

1.S N CHIDAMBARA SASTRY

Counsel for the Respondent(S):

1.S J SURESH

2.V RAGHU

3.G NAGESH

4.P V UMASHANKARA RAO

4

THE HONOURABLE SRI JUSTICE CHALLA GUNARANJAN

WRIT PETITION NO: 27185/2016

ORDER:

Sri S.N. Chidambara Sastry, learned counsel for the

petitioner, addressed a letter dated 13.11.2025 to the Registry

seeking permission of this Court to withdraw the writ petition.

Permission is accorded.

Accordingly, the Writ Petition is dismissed as withdrawn.

There shall be no order as to costs.

As a sequel thereto, interlocutory applications pending, if

any in the Writ Petition, shall also stand closed.

______________________________

JUSTICE CHALLA GUNARANJAN

Date: 19.11.2025 ANS

5

78

THE HONOURABLE SRI JUSTICE CHALLA GUNARANJAN

WRIT PETITION NO: 27185/2016

Date: 19.11.2025 ANS