Chowdeswari Handloom Weaver ... vs State Of Ap on 7 January, 2021

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Andhra Pradesh High Court - Amravati

Chowdeswari Handloom Weaver ... vs State Of Ap on 7 January, 2021

(SHOW CAUSE NOTICE BEFORE ADMISSION)
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
(SPECIAL ORIGINAL JURISDICTION)
THURSDAY, THE SEVENTH DAY OF JANUARY,
TWO THOUSAND AND TWENTY ONE
:PRESENT:
THE HONOURABLE SRI JUSTICE M.GANGA RAO
WRIT PETITION NO: 684 OF 2021

Between: . a
Chowdeswari Handloom Weaver Cooperative Society Limited, Ragimanudinnepalli,
Veeraballi Mandal, Y.S.R District rep., by its President V.Rangaiah, S/o. Kondaiah,
aged about 60 years.
.. Petitioner
AND

1. The State of Andhra Pradesh, rep., by its Principal Secretary, Industries and
Commerce Department, Secretariat Buildings, Velagapudi, Guntur District.
The District Collector, Y.S.R District, Kadapa.

The Director of Hand Loom and Textiles, Mangalgiri, Guntur District.

The Assistant Director of Hand Loom and Textiles, Kadapa, Y.S.R District.
The Kadapa District Co-operative Central Bank Limited, RSR Road, Kadapa,
Y.S.R District rep., by its Chief Executive Officer.

The Deputy Registrar/Officer on Special Duty (FAC), D.C.C.Bank Ltd., YSR
District, Kadapa

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...Respondents

WHEREAS the Petitioner above named through its Advocate Sri V.R.REDDY
KOVVURI presented this 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 to issue an appropriate Writ, Order or direction more particularly one in the
nature of Writ of Mandamus declaring Notice in Form No.2 in E.P.No.93/2019- 2020
issued by the respondent No.6 under the purported exercise of the powers conferred
under Rule 52 (3) of Andhra Pradesh Co-operative Societies Rules, 1964 for recovery
of a sum of Rs.20,51,429/- (Rupees Twenty Lakhs Fifty One Thousand Four Hundred
Twenty Nine Only) without considering the policy decision taken by the respondent No.1
through the G.O.Ms.No.34, Industries and Commerce (Prog.II) Department, dated
08.02.2019 for waiving the cash credit loans sanctioned by the respondent No.5 as
arbitrary, illegal apart from being violative of the fundamental rights guaranteed to the
petitioner under Articles 14, 19 and 21 of the Constitution of India and consequently set
aside the same.

AND WHEREAS the High Court upon perusing the petition and affidavit filed
herein and upon hearing the arguments of Sri V.R.Reddy Kovvuri, Advocate for the
Petitioner and GP for Corporation for the Respondent Nos. 1 to 4 and Sri Challa
Sivasankar, Standing Counsel for the Respondent Nos. 5 & 6, directed issue of notice
to the Respondents herein to show cause as to why this WRIT PETITION should not be
admitted.

You viz:

1. The Principal Secretary, Industries and Commerce Department, Secretariat
Buildings, Velagapudi, Guntur District, State of Andhra Pradesh.
The District Collector, Y.S.R District, Kadapa.
The Director of Hand Loom and Textiles, Mangalgiri, Guntur District.
The Assistant Director of Hand Loom and Textiles, Kadapa, Y.S.R District.
The Kadapa District Co-operative Central Bank Limited, RSR Road, Kadapa,
Y.S.R District rep., by its Chief Executive Officer.
The Deputy Registrar/Officer on Special Duty (FAC), D.C.C.Bank Ltd., YSR
District, Kadapa

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are be and hereby directed to show cause either appearing in person or through an
Advocate, as to why in the circumstances set out in the petition and the affidavit filed
therewith (copy enclosed) this WRIT PETITION should not be admitted, on or before
25-02-2021, on which date the case stands posted for hearing.

IA NO: 1 OF 2021

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 grant stay of
all further proceedings inpursuance of Notice in Form No.2 in E.P.No.93/2019-2020,
pending disposal of WP No. 684 of 2021, on the file of the High Court.

The Court made the following:
ORDER:

"Notice before admission.

Sri Challa Sivasankar, learned standing counsel takes notice for the respondents 5 and 6 and waives further notice and seeks time to file counter.

The case of the petitioner is that it is a Handloom Weavers' Co-operative Society. The members of the society have obtained loans from the 5"

respondent-bank. For non-payment of the loan amounts by the members of the petitioner society, due to the pitiable conditions they are living, the 1° respondent came forward by issuing G.O.Ms.No.34, dated 08.02.2019 and granted huge amounts for re-appropriation towards loan amounts by the Government. The Government has given detailed narration of the pathetic conditions of the weavers. In view of the said G.O., when 'No due certificates' are not being given, the petitioner and similar Handloom Weaver Co-operative Societies approached this Court by filing W.P.No.8967 of 2020. This Court directed the respondents to issue 'No due certificates' to the petitioners therein, in terms of G.O.Ms.No.34 dated 08.02.2019. Despite the directions, they have not issued 'No due certificates'. Thereafter, the impugned notice (Distraint Order) under Rule 52(3) of the A.P Co-operative Societies Rules, 1964, was issued The said notice is being challenged on th grounds that without re-appropriating the loan amounts, as stated in the said G.O. and without issuing any certificate as required under Section 71 of the A.P. Co-operative Societies Act, 1964, the impugned Distraint Order is passed, which is illegal and arbitrary.

Learned counsel for the petitioner states that in similar facts and circumstances of the case, this Court granted interim direction on 21.12.2020 in W.P.No.24368 of 2020. The petitioner is also entitled to similar order.

Following the said order and having considered the submissions of the learned counsel, and on perusal of the record, this Court prima facie satisfied that the petitioner has shown sufficient cause for grant of interim direction.

Accordingly, there shall be interim stay as prayed for. Post on 25.02.2021.

SD/- T.Madhavi ASSISTANT REGISTRAR ITTRUE COPYI/ TSI@ AX For assistar REGISTRAR To,

1. The Principal Secretary, Industries and Commerce Department, Secretariat Buildings, Velagapudi, Guntur District, State of Andhra Pradesh. The District Collector, Y.S.R District, Kadapa. The Director of Hand Loom and Textiles, Mangalgiri, Guntur District.

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4. The Assistant Director of Hand Loom and Textiles, Kadapaj Y.S.R District.

5. The Kadapa District Co-operative Central Bank Limited, RSR Road, Kadapa, Y.S.R District rep., by its Chief Executive Officer.

6. The Deputy Registrar/Officer on Special Duty (FAC), D.C.C.Bank Ltd., YSR District, Kadapa (Addresses 1 to 6 by RPAD- along with a copy of petition and affidavit) One CC to Sri. V.R.Reddy Kovvuri, Advocate [OPUC] Two CCs to GP for Cooperation, High Court of Andhra Pradesh. [OUT] . One CC to Challa Siva Shankar, Standing Counsel [OPUC]

0.One spare copy = oon MM HIGH COURT MGRJ DATED:07/01/2021 NOTE: POST ON 25-02-2021 NOTICE BEFORE ADMISSION WP.No.684 of 2021 INTERIM STAY

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Andhra Pradesh High Court - Amravati