Allowed

Chief Mgr, Sbh, Msme Br, Warangal v. Tahsildar, Warangal Dist and 2 Others

Telangana HC16 Dec 2023WA/1415/2012

Case brief

AI extract

What is this about?

Writ appeals filed by State Bank of Hyderabad challenging dismissal of petitions against distraint orders and sale notices issued under the A.P. Revenue Recovery Act were allowed. The single judge's order dismissing the bank's claim to recover dues from secured assets via distraint was quashed, enabling the bank to proceed with recovery.

What did the court decide?

Common order dated 05.10.2012 in W.P.Nos.27987, 11101 and 11102 of 2012 quashed. Sale notice dated 09.08.2012 and orders of distraint dated 02.04.2012 and 09.04.2012 quashed.

Chief Mgr, Sbh, Msme Br, Warangal Vs Tahsildar, Warangal… — Cheque Dishonour | Telangana HC (2023)

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[^33e3 ]

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HIGH COURT FOR^{THE STATEOF TELANGANAAT HYDERABAD}

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SATURDAY, THE SIXTEENTH^{DAY OF DECEMBER} TWO THOUSAND AND^{TWENTY THREE}

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PRESENT

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THE HONOURABLE^{THE CHTEF JUSTICEALOK ARADHE} AND THE HONOURABLE^{SHRIJUSTICEANIL KUMARJUKANTI}

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WRIT APPEAL Nos.1412^{.14',|-5AND 1483 0F 2012}

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WRIT APPE AL^{NO:1412 0F 2012}

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writ Appeal under^{clause 15 of the Letters Patent preferred against the order dated} 05.10.2012 in^{W.P.No.'11 1O1of 2012 on the file of the High Court'}

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Between:

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state Bank of Hyderabad,^{MSME Branch,warangal,Rep. by its chief ManagerMr'} M. Subrahmanyam,^{S/o Lakshmaiah.}

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...APPELLANT/WRIT^PETITIONER

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AND

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'1. The Tahsildar, Dharmasagar Mandal, Warangal^District'

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M/slaxminarasimha^{lndustries,l.D} A',^{Rampur, DharamsagjrrMandal'} - Wirrtiiiii ot. b, MA"rsrs-Fartlqre Simbaiah, S/o Narsaiah' lVo' Bhavani Nagar,-Hanmakonda,^{WarangalDist.}

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3.A.P.StateCivilsuppliesCorporationLtd.,rep.byitsDistrictManager,Civil Supplies Bhavan, Somaiiguda'^Hyderabad'

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...RESPONDENTS/RESPONDENTS

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l.A. NO: 10F 20',|2(wA P. NO: 3073 0F²⁰¹² )

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Petition under Section^{151 cPcpraying that in the circumstances statedin} the affidavit filed^{in support of the petition, the High court maybe pleasedto} direct the 1st and^{3rd respondents to releasethe distriant propertiesseized} including machinery^{to the appellant bank to enable it to proceed to liquidatethe} securities to recover^{its debtsin accordance with the provisions of SARFAESI Act}

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)

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r*.

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by holding auction under the^provisions of the said Act,^pending disposal of the above appeal.

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l.A. NO: 2OF 2o12(WA MP. NO: 3074OF 20121

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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 auction of all^properties of the 2nd respondent rice mill mortgaged / hypothecated to appellant bank including distraint^properties either on 17.1'l .2012 or any further date to^pending disposal of the above appeal.

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Counsel for the Appellant: SRI A. KRISHNAM RAJU, S.C. FOR SBH

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Counsel forthe Respondent No.1: GP FOR REVENUE

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Counsel for the Respondent No.2: SRI A. PRABHAKAR RAO

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Counsel for the Respondent No.3: SRI A. RAVINDER REDDY,

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S.C. FOR CIVIL SUPPLIES CORPORATION

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WRIT APPEAL NO: 1415 OF 2012

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Writ Appeal under clause 15 of the Letters Patent preferred against the order dated 05.10.2012 in W.P.No.11102 of 2012 on the file of the High Court.

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Between:

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State Bank of Hyderabad, I/SME Branch, Warangal, Rept. by its Chief Manager, Mr.M.Subrahmanyam, S/o. Lakshmaiah

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...APPELLANT/WRIT PETITIONER

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AND

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The Tahsildar, Dharmasagar Mandal, Warangal District.

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Mls. Somanath Agro lndustries, Sy.No. 831, Ramanjapur Village, Venkatapuram Mandal, Warangal Dt., Rep.by Managing Partners Mr.G.Sambaiah, S/o. Narsaiah and Smt.S.Sridevi, Wo. Shri Papaiah,

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A.P,^State Civil Supplies Corporation Limited, Rep. by its District Manager, Civil Supplies Bhavan, Somajiguda, Hyderabad.

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...RESPONDENTS/RESPONDENTS

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l.A. NO:1 O^F 2012(WAMP.^{NO:3081 0F 2012)}

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Petition under Section^{151 CPC praying that in the circumstances statedin} the affidavit filed^{in support of the petition, the High Court maybe pleasedto stay} auction of all^{properties of the 2nd respondent rice mill mortgaged / hypothecated} to appellant bank^{including distraint properties either on 17.11.2012or any further} date to^{pendingdisposal of the above appeal'}

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l.A. NO: 2 O F 2012^{(WAMP.NO:3082 0F 20121}

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Petition under section^{151 CPC prayingthat in the circumstances statedin} theaffidavitfiledinsupportofthepetition,theHighCourtmaybepleasedTo direct the 1"t^{and 3'd respondents to release the distriantpropertiesseized} including machinery^{to the appellant bank to enable it to proceed to liquidatethe} securities to^{recover its debtsin accordance with the provisions of SARFAESI Act} byholdingauctionundertheprovisionsoftheSaidActpendingdisposalofthe above appeal.

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t.A. NO 10F2^13WA P. NO: 79 0F 013

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Between:

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A.P.. State Civil Supplies^{Corporation Limited,Rep'by its District Manager'Civil} Sup6ties Bhavan,^{Somajiguda,Hyderabad.}

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...PETITIONER/RESPONDENT^No'3

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AND

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The Tahsildar, DharmasagarA/enkatapur^{Mandal,Warangal District'}

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M/s. Somanath^{Agro lndustries, Rep.by]!9Managing Partners G'Sambaiah'} - 5i;. N;E;Ah 5no sili."-s'rilJfi,-'W1". Sri- P"apaiah, Bhavaninasar' Hanamkonda,^{WarangalDistrict.}

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RESPONDENTS/RESPONDENTS

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3.StateBankofHyderabad,MSMEBranch,Warangal,Rept'byitsChief - trrtinager, It/r. M.Stibrahmanyam, S/o. Lakshmaiah

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...RESPONDENT/APPELLANT

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Petition under Section 151 CPC^praying that in the circumstances stated in the affidavit filed in support of the^petttion, the High Court may be^pleased to permit the petitioner corporation to auction the paddy and rice present in the 2nd respondent mill^premises in the interest of^justice.

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Counsel for the Appellant: SRI A. KRISHNAM RAJU, S.C. FOR SBH

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Counsel for the Respondent No.1: GP FOR REVENUE

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Counsel for the Respondent No.2: SRI A. PRABHAKAR RAO

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Counsel for the Respondent No.3: SRI A. RAVINDER REDDY, S.C. FOR CIVIL SUPPLIES CORPORAT]ON

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WRIT APPEAL NO: 1483OF 2012

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Writ Appeal under clause 15 of the Letters Patent preferred against the order dated 05.1O.2012 in WP.No.279B7 of 2012 on the file of the High Court.

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Between:

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State Bank of Hyderabad, MSME Branch, Warangal

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...APPELLANT/PETITION ER

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AND

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The Tahsildar, Hanamkonda Mandal, Warangal District.

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The District Collector, Warangal District, Warangal.

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A.P.State Civil Supplies Corporation Limited, Rep. by its, Managing Director, Civil Supplies Bhavan, Somajiguda, Hyderabad

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A.P.State Civil Supplies Corporation Limited, Rep. by its, District Manager, Warangal

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Goflimukkala Sambaiah, S/o. Narsaiah, H.No.2-B-612 (old) 2-8-743 (new), Bhavani Nagar, Hanamkonda, Warangal-506001

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M/s.Bhadrakali lndustries, A partnership firm, having its Office at l4.No.7-516, Gorrekunta Village, Geesugonda Mandal, Warangal District

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...RESPONDENTS/RESPONDENTS

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t.A. NO 1 0F 2012 AM P. NO: 3239 OF^{201 2}

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Petition under section^{151 cPc praying that in the circumstances statedin} the affidavit^{filed in support of the petition, the High Court maybe pleased to} grant stay of the auction to^{be held on 12.12.2012pursuant to the noticeissued} by the 1"t respondent^{in respectof the sth respondent's house propertybearing} use No.2-B-743^{(new) 2-8-612(old) situated at Bhavani Nagar'Waddepalli} Village, Hanumakonda,^{Warangal District pending disposal of the writ appeal'}

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Counsel for the^{Appellant:SRI A. KRISHNAM RAJU,S'C' FORSBH} Counsel for the^{Respondent Nos.'l & 2: GP FOR REVENUE}

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Counsel for^{the Respondent Nos. 3 & 4: SRIA' RAVINDER REDDY} S.C. FOR CIVIL^{SUPPLIES CORPORATION}

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Counsel for^{the Respondents:SRI A. PRABHAKARRAO}

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The Court made^{the following:COMMON ORDER}

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THE HON'BLE THE CHIEF JUSTICE ALOK ARADHI

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AND

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THE HON'BLE SHRI JUSTICE ANIL KUMAR WI{ANTI

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WRIT APPEAL Nos. L4t2 1415 and L4a3 of 2OL2

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COMMON JUDGMENT! (Per the Hon'ble the Chief J.tstice Alok Aradhe)

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Mr. A.IGishnam Raju, learned Standing Counsel for State Bank of Hyderabad representing the appellant.

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These intra court appeals arise from common order dated 05.10.20i2 passed by learned Single Judge in W.P.Nos.27987, 1 I 101 and 11 tO2 of 2Ot2.

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Facts giving rise to filing of these appeals briefly stated are that the appellant has liled writ petitions in which validity of orders of distraint dated 02.04.2012 and, 09.O4.2OI2 issued by the Tahsildar, Dharmasagar Mardal under Section 22 of the A.p. Revenue Recovery Act, 1g64 (briefly referred to hereinafter as^.the Act) and sale notice dated 09.O8.2O12 issued under Section 36 of the Act were assailed inter alia on lhe ground that the appellant is a secured creditor and is entitled to recover its dues from the

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secured asset over the claims of the State Government or A.P. State Civit Supplies Corporation Limited. l,earned Single Judge, however, by the common order dated 05.lO.2I2 has dismissed the writ petitions.

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karned counsel for the appellant submits that the issue involved in these appeals is no longer res integra and has been answered by a Division Bench of this Court in case of State Bank of India, Rep. by its Asslstant General Manager v. Deputy Commercial Tax Oflicerr.

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In view of aforesaid submission and for the reasons assigned by a Division Bench of this Court in the aforesaid decision, the common order dated 05.10.20 12 passed in W.P.Nos.27987, 11 101 and 11102 of 2072 is hereby quashed.

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In the result, sale notice dated 09.08.2012 and orders of distraint dated 02.04.2012 and O9.O4.2OL2 are hereby quashed. The appellant shall be entitled to withdraw the sale proceeds kept in a separate account and

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t 2023 SCC OnLine TS 2302

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shall be entitled to appropriate the s€rne towards the

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amount due to it.

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Accordingly, the Writ Appeals are atlowed.

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There shall be no order as to costs.

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Miscellaneous applications, if any pending, shall

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stand closed.

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That Rule Nisi has been made absolute^{as above.} Witness the Hon'ble the Chief Justice^{ALOK ARADHE on this Saturday'the} Sixteenth Day of December, Two^{Thousand and TwentyThree.}

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Sd/. K. SRINSVASA RAO JOINT RE ISTRAR-. //TRUE COPYII SECTION OFFICER

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To,

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The Tahsildar, Dharmasagar Mandal,^{WarangalDistrict.}

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The District Manager, Civil Supplies^{Bhavan,Telangana State Civil Supplies} Corporation Ltd., Somaliguda, Hyderabad.

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The District Collector, Warangal^{District,Warangal.}

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The Managing Director, Telangana State^{Civil Supplies Corporation Limited,} Civil Supplies Bhavan, Somaiiguda, Hyderabad

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The District Manager, Telangana^{State Civil Supplies CorporationLimited,} Warangal.

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The Chief Manager, State Bank of Hyderabad,^{MSME Branch' Warangal.}

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One CC to SRI A. KRISHNAM RAJU, S.C.^{for SBH} [OPUC]

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Two CCs to GP for Revenue, High^{Court for the State of Telanganaat} Hyderabad [OUT]

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One CC to SRI A. PRABHAKAR RAO,^Advocate IOPUC]

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10.One CC to SRI A. RAVINDER REDDY, S.C.^{for Civil Supplies Corporation} IoPUCI

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11.Two CD Copies

HIGH COURT

DATED:1611212023

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W.A.Nos.1412,1415 AND 1483OF 2012

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ALLOWING THE WRIT APPEALS WITHOUT COSTS

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DL LD

Chief Mgr, Sbh, Msme Br, Warangal v. Tahsildar, Warangal Dist and 2 Others

Case brief

What is this about?

What did the court decide?

Chief Mgr, Sbh, Msme Br, Warangal v. Tahsildar, Warangal Dist and 2 Others

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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