Disposed¶53

Telangana State Chess Association v. The State of Telangana

Telangana HC5 Aug 2025WP/13314/2024

Case brief

AI extract

What is this about?

Bank account freeze by Central Bank of India; writ of mandamus under Article 226; non-consideration of representation dated 03.05.2024; internal society dispute between rival elected bodies; Section 23 Telangana Society Registration Act 2001; interim order 09.05.2024 de-freeze; Bank reply dated 23.05.2024 and 29.05.2024; liberty to file representation; disposed without going into merits; no costs; Telangana State Chess Association v. State of Telangana.

What did the court decide?

Liberty to the petitioner to file a representation to the communication letters dated 23.05.2024 & 29.05.2024 within two (02) weeks from receipt of a copy of the order; respondents to consider such representation and pass appropriate orders within three (03) weeks thereafter; no order as to costs; miscellaneous applications, if any, stand closed. ¶53

Telangana State Chess Association Vs The State of… — Writ and Judicial Review | Telangana HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether respondent No.2 Bank acted illegally/arbitrarily in freezing the petitioner's bank account and in not considering the petitioner's representation dated 03.05.2024, and whether the Bank had jurisdiction to freeze the account. +1 more

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Court's answer

Recording the submissions and without going into the merits of the case, the writ petition is disposed of, granting liberty to the petitioner to file a representation to the communication letters dated 23.05.2024 & 29.05.2024 within a period of two (02) weeks from the date of receipt of a copy of the order.

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Ratio / Principle

If such representation is made, the respondents shall consider it and pass appropriate orders within a period of three (03) weeks thereafter.

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Key takeaways

With the observations made and with consent, the writ petition is disposed of; there shall be no order as to costs.ratio¶54
As a sequel, miscellaneous applications pending in the petition, if any, shall stand closed.ratio¶55

Detailed headnote1 paragraphs

Writ Petition No. 13314 of 2024 (High Court for the State of Telangana at Hyderabad, N.V. Shravan Kumar, J., 05.08.2025): The Telangana State Chess Association challenged the action of respondent No.2 Bank (Central Bank of India, Fathemaidhan Branch) in freezing its current account and not considering its representation dated 03.05.2024, sought to be remedied by a writ of mandamus under Article 226. The Bank's counter disclosed an internal dispute between rival elected bodies of the Association (K.A. Shiva Prasad claiming presidentship per General Body minutes dated 23.04.2023; letters dated 23.02.2024 and 26.02.2024), and that redressal lay under Section 23 of the Telangana Society Registration Act, 2001; K.A. Shiva Prasad had separately filed W.P.No.7110 of 2024. An interim order dated 09.05.2024 had directed de-freezing absent valid reason or a reasoned reply. By the time of final hearing, the Bank had disposed of the representation on 23.05.2024 (received 24.05.2024) and replied the petitioner's further communication dated 25.05.2024 on 29.05.2024. Without going into the merits and with consent, the Court disposed of the writ petition granting liberty to the petitioner to file a representation to the communications dated 23.05.2024 & 29.05.2024 within two weeks, to be considered and appropriate orders passed within three weeks thereafter; no order as to costs; miscellaneous applications closed.

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[³²⁵⁵ ]

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IN THE HIGH COURT^{FOR THE STATEOF TELANGANA} AT HYDERABAD (SPecial Original Jurisdiction)

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TUESDAY,THE FIFTH^{DAY OF AUGUST} TWO THOUSAND^{AND TWENTY FIVE}

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PRESENT

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THE HONOURABLE SRI^{JUSTICE N.V.SHRAVAN KUMAR}

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WRIT PETI^{TION NO: 13314 OF 2024}

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Between:

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TELANGANA STATE^{CHESSASSOCIATION, (RegdNo.603of^2015)} nffrlaieO to Atl Lndi,^{Chess Association' Recognised by. Telangana Olymp-ic} Association, Spo(s Authority,^{TS Rep. By. Mr. K.S-Prasad, President Age tio} y"rrq zos,2nb Floor, Kubeia Toweri,^{N-rayanguda, Hyderabad'}

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...PETITIONER

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AND

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The State of Telangana,^{Rep. By. Sp. Chief Secretary, Finance Department,} Dr BR Ambedhkar^{Secretariat,Hyderabad.}

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in" eranch Minrger,^{Central Bank of lndia,FathemaidhanBranch,} Hyderabad.

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...RESPONDENTS

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Petition under Article^{226 of lhe constitution of lndiapraying that in the} circumstances stated in^{the affidavit filedtherewith,the High court maybe} pleased to issue an order or^{direction, more particularlyin the nature of writ of} Mandamus by declaring^{the action of Respondent No.2 in not considering the} representation dated^{03-05-2024made by the petitioner is illegal, arbitrary and} against violation^{of principlesof natural justiceand consequent directionto direct} the Respondent^No. 2^{to considerthe representation of the petitionerdated} o3-o5-2024

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IANO:1OF2 024

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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 pass an interim order by directing Respondent No.2 to unfreez the petitioners Bank Account vide cA No.3639g14775, Centrar Bank of rndia, Fathemaidhan Branch, Hyderabad with immediate effect and alow afl banking-transactions without any hindrance pending disposal of the above writ petition

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Counsel for the Petitioner: SRl. SUBRAMANYAM DARABOINA Counsel for the Respondent No.1: Gp FOR FINANCE PLANNING Counsel for the Respondent No.2: SRI METTU SRINIVAS REDDy The Court made the following: ORDER

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THE HONOURABLE^{SRI JUSTICE N.V.SHRAVANKUMAR} WRIT PETITION^{No.13 3L4 of 2o24}

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ORDER:

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The petitioner^{is aggrievedby the action of respondent No'2} tn not considering^{thepetitioner's representationdated} 03.O5.2024.

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2.Tlrefactsofthecaseinbriefarethatthepetitioneris represented by^{its President and submits that their Association} is registered under^{the provistonsof Societies Registration Act'} 200 I by name^{"TelanganaSlate Chess Association"under} Regrstered^{No.6O3of 2O15, q'hich is affiliated to All India Chess} Association^{recognized by Telangala Olympic Association' Sports} Authority,^{Telangana State with its registeredoffice situatedat #} 2Q$, fna lloor, Kubera^{Towcrs, Narayanaguda, Hyderabad' It is} further submitted^{Lhat thc entire operations are in line with the} registered^{by-1awsald are strictlyconductedbythe} Management^{Committee,rn'hich is electect by a vote of mandate} and the^{present body is ele cted on 17 'Ol '2O2 1 in compliance} with the orders^{passecl by this Court in I'A'No' 1 of 2O2O rn} W.P.No.22963of2o2o'dated16.|2.2o2oandthepetitioneris a.cting as Presidcnt^{and performing theirobligation swith} guidelines and. directions^{as contemplatedunder} '^{'l'.aw and}

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maintaining all statutory records. It is further submitted that as a part of the main activity, the Association is scheduled to conduct "MAIRVEL At_L INDIA OPEN FIDtr RATING CHESS CHAMPIONSHIP 2024" starting from 01 .O5.2024 to 08.05.2024

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'lhe case. of Lhe pctitioner is that the rcspondent No.2 resorted to il1e13a11y stopping the operation of their bank account ulde C.A.No.3639814275, Central Bank ol India, Fathemaidhan Branch, Flyderabad in terms o[ honoring Lhe cheques / pa,vments issr_t,:d / drau,n on the accounl despite having clear credit balance in the account and on enquiry, the respondent No.2 ora_lly submittecl that he has instructions to freeze the account and refused to give erny details. It is further submitted that the petitioner's Association clirectry dears rvith conducting sports events a:td they have clear track record anrl ali payments are routed throtrgh their current account.

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4 . The main grievarce of the petitioner is that after completing the ,:rrent, they would be under severe pressure from vendors for cleeuing the payments for their respectrve services, for which, the bank account shouid be fuliy operational for avaiiing services of issuance of cheques and cash u.ithdralvals in the interest of the Association. In vielr, of tl-te freezing of their

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cr.rrrent account, they^{are not in a position to pay the advance} payment or release^post function^payments.

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Aggrieved by the action^{of respondent No.2,the petitioner} made a representation^{onO3.O5.2O24 andrequestedfor} immediate action'^{When such efforts wentin vain, the petitioner} society filed the^{present Writ Petition.}

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The Senior Manager^{of respondent No'2 Bank filed counter} submitting that the^{petitioner claims to be the elected memberof} the Society's executive^{committee.I-lowever, anothermemberby} name Major K.A.Shiva^{Prasadclaims to be the newlyelected} memberofadifferentexecutivebodywiththesameAssociation and submitted an^{extract of Minutes of Association's General} Body meeting held^{on 23.04.2023.lt is furthersubmittedthat} there is an internal^{disputeamongthe membersand the bank} had received ietters^{dated23.o2.2024 and 26.O2.2024 enclosing} the Minutes of General^{Body meeting of the Association held on} 23.04.2023, which^{disclosesthat a new body of the Association} elected Mr. K.A.Shiva^{Prasadand Mr. M.Anjaiah as President} and Vice President^{of the Association,who has informedto freeze} the current account^{of the Association, as there are disputes} amongthemembersoftheAssociation.Itisfurthersubmitted that the petitioner^{was informed about the letter for freezing the}

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account and on 26.02.2024, a message to that effect was sent to the petitioner through WhatsApp with a request to r.isit the branch to shon, the letters / documents for lieezing the account. It is further submitted that the petitioner inforrnecl respondent No.2 bank tl-ra-t he is going to take appropriate sleps ald resolve the disputes among the members of the Association. lt is further submitted th at after freezing or the account of the Assocration, the respondent No.2 has not received aly cheques of the Association fo;- payment or objections for tieezi'rg trre account ncither from t;tc petitioner nor from the ner,vly clected bod,t. for tw,o and half n,ronths till the month of May, 2024. It is lurther submitted rhat the petitioners submitted a letter on 03.o5.2024 requesting to provide information of freezing of the account. It is further submitred that instead of resolving the disputes among the members ,tf the Association, the petitroner has filecl the present writ p<-'tition against the Ba.rk wiLh ralse and frivolous allegations. It is further submitted that the said K.A. Shiva Prasad has also filed W.p.No .7 1 10 of 2024 before this Court without making the petitioner as a party, which clearly indicates that both the parties have no i,tention of resolving their disputes in the Association,s interest and the petitioner and Mr. K.A.Shiva Prasad were inlormed to seek redressal from the competent Court of larv for any clisputes reiating to the Association, as per

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Section 23 of^{the TelanganaSocietyRegistrationAct' 2001and} eventually^{prayedto dismiss the Writ Petition'}

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This Court on^{09.05.2024 passedthe followingorder:}

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" Heard Sri^{DaraboinaSubramangannYadau,learned counsel} for^{the petitioner.}

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Leamed counsel for^{the petitioner infonned that respondent} io..Z is serued^{through pZrsonal notice as u-tell as Registered} post urith Acknoulidgment Due' He^{submits that bonk} o"iourrt of^{the petitionir associationis freezedbg respondent} io.2 u.,ittnut^{'assigning onA reasonThe petitionerhas} aiready^{prefened idetailed representationdated 03 05'2024} ;;;;;g'di-7r."r"^{of account and for assigningreasonfor} freeziiq the^{account. He} further^{submits that titt date neither} '";;;;,i is de-freezed no, ,ny reason is assigned for^taking such drastic^action-

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Nobody entered^{appeoranceeuenin the pass-ouer round'} As an intenm^{measureand- subject to hearing the other side'} 'ii- is directed- that if ttrcre Lists no ualid reason' the "i.titi"iir'" account Le forttuuith 4tl!?":?d:,.ond if there 'exists ang ualid' reason, replg be forthttLith filed" ' 8 Learned cou.nsel^{for respondentNo'2} -^{Bank submits that}

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the petitioner's^{representationwasalready disposed on} 23.Cl5.2024, as^{submittedby the petitioner's counsel'the same} was received^{loy the petitioner on 24 'O5 '2024 'As such' the} prayer sought in this^{Writ Petition has been answeredby way of} their reply to^{the petitioner's representation'}

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g . Learned. counsel^{for the petitioner submits that the said} letter was not^{markedto the petitioner'}

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lo.Percontra,learnedcounselfortherespondentfurther d.raws attention^{of the court to the subsequent communication}

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-i\

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made by the petitioner on 25.05.2 O24 to the respondent No.2 _ Bank, which was again replied by the respondent No.2 _ Bank on 29.O5.20,24

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11 Learned counser for the respondent further submits that the order dated 23.O5.2024,

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disposir-rg the petitioner,s representation, the relief sought in this Writ petition has alreadv been ansvye red- dnd the sarne has been referred rn the subsequent gommunications.

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12 Learncd counsel for the petitioner further submits that the core lssue involved in the Writ petition is on the freezing of the petitioner's bialk account and if the same is continued, the petitioner cannot operate in meeting its objectives and respondent No.2 has no jurisdiction to freeze the petitioner,s balk account and after arguing at iength submits that he u,ould make a detailed representation once gain bringing forthwith the reasons and would take further steps in challenging the communication letters dated 23.05.2024 & 29.O5.2024.

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Heard the learned counsel for the petitioner and the learned counsel for the respondent No.2 _ Bank.

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In that view of the matter, recording the same, without going into the merits of the case, this Writ petition is disposed of grarting liberty to the \ petitioner to file a representation to the

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communication letters dated 23.05.2024 & 29.os.2o24 within a period of two (02) weeks from the date of receipt of a copy of this order. If such representation is made, the respondents shall consider and pass appropriate orders within a period of three (O3) weeks thereafter.

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