WP/19628/2004 of M/s. Bung Agencies, Vs The A.P. Co-operative Tribunal, on 31 December 2004

ORDER:

Heard the learned counsel for the petitioner Mr. A.P.Venu Gopal and the learnedstanding counsel Mr S.Sainathan for the 2[nd] respondent-Bank.

This writ petition is filed, aggrieved by the order passed by the AP Co-operativeTribunal, Hyderabad in I.A.No.1332 of 2004 in CTA No.332 of 2003 dated 20-10-2004.

It is not in dispute that the second respondent Bank initiated proceedings underSection 62 of the A.P. Co-operative Societies Act, 1964 for recovery of Rs.6,98,954-20 ps and in pursuance of the same an award was passed by the third respondentherein in A.R.C.No.232 of 2002/J1 dated 31-03-2003 making the writ petitioner andthe fourth respondent herein along with four others jointly and severally liable.Aggrieved by the same, the petitioner herein preferred an Appeal (C.T.A.No.332 of2003) in the said Co-operative Tribunal, Hyderabad, which is pending.

It is also not in dispute that initially the petitioner filed I.A.No.5808 of 2003seeking stay of all further proceedings in pursuance of the Award dated 31-03-2003,but the same was dismissed on 16-08-2003 by the Tribunal. It appears thataggrieved by the said order, the petitioner filed W.P.No.18515 of 2003 in whichinterim stay was granted subject to the petitioner deposits a sum of Rs.2.5 lakhs, butthe petitioner failed to comply with the same and ultimately the writ petition wasdismissed as withdrawn. In the meantime, the petitioner filed O.S.No.21 of 2003 onthe file of the Court of the III-Additional Chief Judge, City Civil Court, Hyderabadagainst the fourth respondent herein for recovery of Rs.10,57,650/- alleged to be duewith regard to certain business transactions carried on by the petitioner and thefourth respondent. The said suit was decreed on 27-10-2003 and in pursuancethereof the petitioner filed E.P.No.13 of 2004 seeking attachment of the Bankaccount of the fourth respondent and the same was ordered. Aggrieved by the said

order passed by the Court of III-Additional Chief Judge, City Civil Court, Hyderabad,the fourth respondent herein filed C.R.P.No.2180 of 2004. This Court by order dated30-04-2004 in C.M.P.No.9909 of 2004 granted stay subject to the condition that thefourth respondent deposits 1/4[th] of the decretal amount. In compliance with thesame, the fourth respondent deposited a sum of Rs.3 lakhs in the Court of III-Additional Chief Judge, City Civil Court, Hyderbad. It appears that the petitioner hasfiled an application for withdrawal of the said amounts which is pending forconsideration. While so, the second respondent filed E.P.No.238 of 2003/J1(A)before the third respondent for execution of the Award dated 31-03-2003 and inpursuance thereof, a notification was issued in the local dailies for sale of themortgaged property belonging to the petitioner. The sale is proposed to be held on28-10-2004. The petitioner states that the property proposed to be sold is aresidential house in which the deponent is staying along with other family members.

In the changed set of circumstances, the petitioner preferred IA No.1332 of 2004 inCTA No.332 of 2003 requesting the 1[st] respondent Tribunal to grant stay of theexecution proceedings. The said application was dismissed by the Tribunal by orderdated 20-10-2004 on the ground that the petitioner failed to comply with thedirections of this Court for depositing 50% of the amount and also since the earlierapplication filed by the petitioner for the same relief was already dismissed.Challenging the said order, the present writ petition is filed.

The learned counsel for the petitioner submits that the petitioner is prepared to pay asum of Rs1,50,000/- immediately and the necessary steps are also being taken forwithdrawal of Rs.3 lakhs in deposit in the Court of III-Additional Chief Judge, CityCivil Court, Hyderabad and if reasonable time is granted, the same will also be paidand therefore it would be appropriate to stay the proposed sale of the residentialhouse till the disposal of the Appeal pending in the Tribunal.

The learned Counsel appearing for the second respondent Bank submittedthat there cannot be any stay of proposed sale unless the petitioner deposits atleasthalf of the amount in dispute in compliance with the earlier orders of this Court. Thelearned Counsel also made a request for necessary directions for expeditiousdisposal of the Appeal pending before the Tribunal.

Having regard to the facts and circumstances of the case and in the light of thesubmissions made by the learned Counsel for both parties, the writ petition is disposed of with a direction to the Tribunal to dispose of the appeal pending on itsfile, as expeditiously as possible, preferably within a period of eight weeks from thedate of receipt of this Order. Pending the said appeal, the proceedings inEP.No.238/2003-J1 (A) shall be stayed subject to the condition that the petitionerdeposits a sum of Rs.5,00,000/- (Rupees five lakhs) towards the amount due underthe Award dated 31-03-2003. Out of the said amount, a sum of Rs.1,50,000/-(Rupees one lakh and fifty thousand only) has been paid by way of demand drafttoday which has been handed over by the learned Counsel for the petitioner to SriD.V.Krishna Rao, the Chief Executive Officer of the 2[nd] respondent Bank, who ispresent in the Court and has been identified by the learned Counsel for the secondrespondent Bank. The balance of Rs.3.5 lakhs shall be deposited in the Tribunalbelow within a period of four weeks from today failing which the stay stands vacated.

The writ petition is accordingly disposed of. No costs.

__________

26-10-2004

rkk

Note:

Issue CC by Two days

(B/o0rkk

To

1 The Secretary,A.P. Co-operative Tribunal, VII th Floor, Gagan Vihar, Hyderabad.

2 The Chief Executive Officer,A.P. Mahajan Co-operative Urban Bank Limited, 1st Floor, Ghasmandi Road, Secunderabad.

3 The Co-operative Sub-Registrar/Sale Officer Office of the Divisional Co-operative Officer, Secunderabad Division, A.P.H.B., Complex, Nampally, Hyderabad.

Issues

4 Hyderabad Agricultural Co-operative Association Limited, Rep. by its Managing Director, Having its Office at 5-10-193, IIn Floor, HACA Bhavan, Hyderabad. 5-10-193, IIn Floor, HACA Bhavan, Hyderabad.

5 Two CD copies.