Dismissed

Venu Akula v. The Union of India

Telangana HC3 Dec 2021WP/31807/2021

Case brief

AI extract

What is this about?

In a common order disposing of three writ petitions under Articles 226 and 151 CPC against India Bulls Housing Finance Limited, the Telangana High Court observed that the respondent was a private entity not amenable to writ jurisdiction. Consequently, the petitions were dismissed on withdrawal by the petitioner with liberty to file fresh applications renames the relief sought.

What did the court decide?

The writ petitions are dismissed on withdrawal of the petition by the petitioner with liberty to file fresh applications.

Venu Akula Vs The Union of India — Service and Employment | Telangana HC (2021)

¶1

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction)

¶2

FRIDAY, THE THIRD DAY OF DECEMBER TWO THOUSAND AND TWENTY ONE

¶3

PRESENT

¶4

THE HON'BLE SRI JUSTICE UJJAL BHUYAN AND THE HON'BLE SMT. JUSTICE P.MADHAVI DEVI

¶5

WRIT PETITION NOS: 31804, 31807 AND 31808 OF 2021

¶6

wP NO.31804 0F 2021^:

¶7

Between:

¶8

Veangro Nutri Foods Private Limited, A company registered under^companies act, 1956 Represented by its Director Mr.Venu^{Akula Aged about 44 years,Orcc.} Business, Rl/o Flat no.61B Sundaram Building,^{RamaRaja Nagar, Suchiira'} Ranga Reddy District

¶9

...pErroNER

¶10

AND

¶11

'l . The Union of lndia, Represented by its Secretary-tVinistry of Finance New Delhi. 2. Reserve Bank of lndia, Main^{Building, P.O.Box 90'l} ,^{Shahid BhagatSinghRoad,} Mumbai-400 001.

¶12

Dhani Loans and Services^{Limited, (Formely Known as lndia BullsConsumer} and Finance Limited and^{IVL Finance Linited), having its reigistered office at M-} 62 and 63, First Floor, Connaught^{Place, New Delhi-1 10001}

¶13

San.iay Agarwal, Sole Arbitratoi^O/o.G-12101 ,Sectorl^{5, Rohini, New Delhi-} 11oo89

¶14

...RESP'NDENr'

¶15

Petition under Article 226 of^{the constitutionof lndia prayingthat in the} circumstances stated^{in the affidavitfiled therewith,the High Court may be pleased} to issue an appropriate^{writ, order or direction more particularlyone in the nature of} Writ of Mandamus

¶16

a)Declaring the inaction^{of the respondent no.3 bankfor not restructuringthe} loan account 5000307787^{0f the Petitionerherein in accordance with RBls} Notification DOR.No.BP.BC^{14t21 .O4.O4\l2o2o-21 Dated. 06.08.2020 and RBI} RESOLITION FRAME WORK 2.0 RBII2O21'22131 DOR.STR.REC.11l21^{.04.04812021-22dated 05.05.2021 issued by the respondent} no.2 as arbitrary, illegal,^{violative of said Notifications issued by the respondent no.2} and as being violative^{of Article 14 of the constitution of lndia and against the public} interest.

¶17

b)TodeclaretheunilateralappointmentofRespondentno.4aSsolearbitrator byrespondentno.3andfurtherinitiationofarbitralproceedingsvide. IcFUBL/RB/6209/LOT-29/19^{based on such unilateral appointmentpending} restructuring^{of the loan accounts as arbitrary illegal and violative of Article 14 of} Constitution of^lndia.

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c)Consequentlydirectingtherespondentno.3tocompletetherestructuring process of the above loan^{accountsooo3o7787 by addingthe outstandingpending} interests and^{principalfor the interveningperiod into the re-structuring process for}

¶19

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the said loan account so as to regularise the loan account in accordance with restructuring circulars issued by the RBl,

¶21

lA NO: 1 OF 2021

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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 stay the arbitral proceedings vide lcFUBURBl62ogtLor-29/19 initiated based on the unilateral appointment of Respondent no.4 as sole arbitrator appointed by the respondent no.3 pending disposal of the writ petition and consequenfly direct the respondent no.3 to not to take any coercive steps detrimental to the interests of the Petitioner including declaration of the loan account as NpA pending disposal of the writ Petition

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Gounsel for the Petitioner: SRI ABHINAV KRISHNA UppALURI

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Counsel for Respondent No. 1: SRI N. RAJESHWAR RAO ASSISTANT SOLICITOR GENERAL

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Counsel for Respondent Nos. 2 to 4: ---

¶26

WP NO:31807 OF 2021

¶27

Between:

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1 Venu Akula, s/o Late Narayana Akura Age 44, occ. Business Aged about 44 fears,Fyo-Flatno.61B,^{Sundaram Buildin!, Rama Raja} ltagir, SuEhitri il;g; Reddy - 500067

¶29

2 Prathima Akula, w/o Venu Akura {se. se years occ. Business; Aged about 44 Iealg,ryg-ltg!^{no.61B, Sundaram Buirding,'Rama Raja} rrrigjr,-SrEhii,i-R;;g; Reddy 500067

¶30

...PETITIONERS

¶31

AND

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The Union of rndia, Bep.rgqeryeq by its secretary-Ministry of Finance New Derhi 2. Reserve Bank of rndia, Main Buirdiirg, p.o.Box r5ot, snilrio ehugaisin6fi Roro, Mumbai - 400 001.

¶33

lndia Bulls Housing F1nq1ce. Limited, 3rd Floor, park city plaza, Above Jade Btue .^{Showroom. Road io.1, San;ara rfifG, rfvo"i"Olo -} 500034

¶34

Dhani Loans and services [imited, (Formerly Known as lndia bu]ls consumer Finance Limite_d).Registered office ai tr,,t-OZ a'nO Og, First Fi;, C;;;;6fri'irrr.", New Delhi -1 10001

¶35

Amit Tanwar Advocate Chamber Btock, Saket Court Comptex, wew ( Sore Arbitrato0, office Detni at. _ chamber 1itoi7 No.^'- 702, Lawver,s

¶36

;r;;;rr_r.

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Petition under Article 226 of the constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus

¶38

a) Declaring the inaction of the respondent no.4 bank for not restructuring the loan account no. 5000332658 of the petitioner herein in accordance with RBl,s Notification RESoLtloN FRAME woRK 2.0 RBU2o21-22t31 DoR.srR.REC.11rz1 .o4.o4Bt2o21 - 22 dated 05/0s/202,1 issued by the respondent no.2 as arbitrary, ilregar, violative of said Notifications issued by the respondent no.2 and as being violative of Article 21 of the constitution of lndia and against the public interest.

¶39

¶40

b) To decrare the uniraterar appointment of Respondent no.5 as sore arbitrator by respondent no.4 and further initiation of arbitral proceedings vide. Dhani/BizlARB /Lor-658r475 in view of the pending restructuring representation dated/25/09/2021 of the roan account no. 50003326s8 as arbitrary iflegar and violative of Article 14 of Constitution of lndia.

¶41

c)consequentry directing the respondent no.4 to comprete the restructuring process of the above loan account 5000332658 by adding the outstanding pending interests and principar for the intervening period into the re-structuring process for the said roan account so as to regurarise the roan account in accordance with restructuring circulars issued by the RBl,

¶42

IA NO: 1 oF 2021

¶43

Petition under section 151 cpc praying that in the circumstances stated in the affidavit fired in support of the petition, the High court may be preased to stay the arbitral proceedings vide Dhani/BizlARB rLor-6sgr4z5 initiated based on the unilaterar' appointment of Respondent no.5 as sore arbitrator appointed by the respondent no.4 pending disposar of the writ petition and consequenfly direct the respondent no.3 and 4 to not to take any coercive steps detrimental to the interests of the Petitioner including declaration of the loan account as NpA pending disposal of the writ Petition

¶44

Counsel for the Petitioner: SRI ABHINAV KRISHNA UppALURI

¶45

Counsel for Respondent No. 1: SRI N. RAJESHWAR RAO

¶46

ASSISTANT SOLICITOR GENERAL

¶47

Counsel for Respondent Nos.2 to 4: ---

WP NO: 31808 OF 2021

Between:

AND

Sriven Marketrng, RepresenteO!.V Proprietor lr,4r.Venu Akula, Age. 44, Occ. Busines_s Aged about 44 years,R/o '!q Flat no.618, Sundaram Building]Rama Raja Nagar, Suchitra, Ranga Reddy- 500067 ...pE,,oNER

¶52

The Union of lndia, Represented by its Secretary-Ministry of Finance New Delhi. 2. Reserve Bank of lndia, [Main Building, Pb.Box 901, Shahid Bhagat Singh Road, Mumbai-400 001.

¶53

lndia Bulls Housing Finance Limited, 3rd Floor, Park City Plaza, Above Jade Blue Showroom,Roadno.l,BaniaraHills,Hyderabad-500034 ...RESpoNDENrs

¶54

Petition under Article 226 of the Constitution of lndia^praying that in the circumstances stated in the affidavit filed therewith, the High Court may be^pleased to issue an appropriate writ, order or direction more^particularly one in the nature of Writ of lvlandamus a) Declaring the inaction of the respondent no.3 bank for not restructuring the loan A/c No. HFlLHYIV00438334 and HHLHYIU00437996 of the Petitioner herein in accordance with the RBI RESOLITION^{FRATVEWORK 2.0} R8112021-22131 DOR.STR.REC.11l21 .04.04812021-22dated^{05/05/2021issuedby} the respondent no.2 as arbitrary, illegal,^violative of said^{Notification dated.}

¶55

o5to5l2o21 issued^{by the respondent no.2and as being violativeArticle14 and 21} of the constitution^{of lndia and against the public interest.b)consequently directthe} respondent no.3 to^{restructure the loan account loan A/c No. HHLHYM00438334} and HlALHyMo0437gg6^{0f the Petitioner in-accordance withcirculars/Guidelines} videRBlRESoLlTloNFRAIVEWoRK2.0R9ll2o2l.22l3l DOR.STR.REC .11121.04.048t2021-22^{dated 05/05/2021 by adding the outstanding} pending amounts including interests^{and principal for the intervening period into the} re-structuring^{process for the said loan account so aS to regularise the loan account} and enable the Petitioner^{to pay monthly EIr/l's accordingly'}

¶56

IA NO 1 0F 2021

¶57

Petition under Section^{151 CPC praying that in the circumsta ncesstatedin} the affidavit filed in^{support of the petition, the High court may be pleasedto} suspend the operation^{of noticedated 03/1 112021 (Ref .17421l HHLHYM00438334)} and 27to8l2o2,l^{(Ref. 17419/ HHLHYMO0437996)declaringof the loan Aic No:} HELHYM0O43B334 and^{HELHYM0O437996as N.P.A on 12 10.2021and} 15.08.2021 as the same is in^{violationRBI RESOLITION FRAMEWORK2'0} RBlt2O21-22131 DOR. STR.REC.1^{1121.04.04812021'22dated A5.05.2021and} consequently also suspend all the^{proceedings initiated under SARFAESI Act, 2002} against the Petitioner based on the declaration^{of the loan accotmtsof the Petitioner} as NPA on 1211012021 and^{1910812021and direct the respondentno.3to not to take} any adverse action against the Petitioner herein^{includingfurther declarationof} Petitioner's loan account as NPA^pendine the disposal of the writ^petition. Counsel for the Petitioner: SRI ABHINAV KRISHNA UPPALURI

¶58

Counsel for Respondent l'.1o. 1: SRI N. RAJESHWAR RAO/ ASSISTANT SOLICITOR GENERAL

¶59

Counsel for Respondent Nos. 2 & 3: ---

¶60

The Court made the following: COMMON ORDER

¶61

HONO t-I ITAI] LI,] S It I .ITTSI'ICF] UJJAL BII UYAN ANI) HONOUIlAI}t,E SMT..IT]STICIi P. MADHAVI DEVI

¶62

W.P.Nos.-3180,1 31807 & 31808 OF 2021

¶63

COMMON OITDER: rpr Hon htt.\ri Ju\tic,,LJJiot Bhtryqn)

¶64

In this batch olwrit petitions, petitioners seek a declaration that the action of respondent/India Bulls Housing Finance^{Limited in not} restructuring the loan account^{of the petitionersin terms of the} guidelines of the Reserve^{Bank of lndia is illegal andvoid'} Petitioneis, thercfore,^{seek a directionto respondent/IndiaBulls} I{ousing^F inancc^{[,irnited to rcstructuretheir loan account'}

¶65

When it^{was pointed out to learncd counsel lor the petitioners} that respondenVlndia^{Bulls Llousing Finance Limited is purely a} private entity^{and n.raynot be atnenableto the writ iurisdiction of this} court, he^{seeksleave to withdraw the wrir petitionsand file alreshby} reh'aming^{the relieL}

¶66

Writ petitions^are ,^{accordingly'dismissedon withdrawalwith} libertY^{as stated above'}

¶67

4- Miscellaneous^{applications' if any pending' shallstand closed'}

¶68

No costs.

¶69

SD/.T.TIRUMALA^DEVI ASSISTANT^REGISTRAR //TRUE COPY// (1D SECTION^OFFICER

¶70

To, I One CC^{to Sri AbhinavKnshna Uooaluri'AdvocatetO'!!].,,o,.} General (OPUC) 2 one CC to^{Sri NamavarapuRajedk'uf,Rao'Assistant I} 3. Two^{CD CoPies} 4. One^{SPare CoPY} IMBC

v"BS

HIGH^COURT

DATED:^A3t1212021

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COMMON ORDER

¶75

WP NOS:^{31804, 31807 AND 31808 OF 2021}

¶76

DISMISSING^{THE WRIT PETITIONS'AS WITHDRAWN'}

¶77

WITHOUT^COSTS.

¶78

N,, .
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6

Venu Akula v. The Union of India

Case brief

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Venu Akula v. The Union of India

Case brief

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