The High Court · 2025

Judgment

2. The State of Telangana, Rep. By. Sp. Chief Secretary, Finance Department, Dr BR Ambedhkar Secretariat, Hyderabad. in" eranch Minrger, Central Bank of lndia, Fathemaidhan Branch, Hyderabad. ...RESPONDENTS

Petition under Article 226 of lhe constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue an order or direction, more particularly in the nature of writ of Mandamus by declaring the action of Respondent No.2 in not considering the representation dated 03-05-2024 made by the petitioner is illegal, arbitrary and against violation of principles of natural justice and consequent direction to direct the Respondent No. 2 to consider the representation of the petitioner dated o3-o5-2024 =7 IANO:1OF2 024 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 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 THE HONOURABLE SRI JUSTICE N.V.SHRAVAN KUMAR WRIT PETITION No.13 3L4 of 2o24 ORDER: The petitioner is aggrieved by the action of respondent No'2 not considering the petitioner's representation dated

03.O5.2024.

2.Tlrefactsofthecaseinbriefarethatthepetitioneris represented by its President and submits that their Association is registered under the provistons of Societies Registration Act' 200 I by name "Telangana Slate Chess Association" under Regrstered No.6O3 of 2O15, q'hich is affiliated to All India Chess Association recognized by Telangala Olympic Association' Sports Authority, Telangana State with its registered office situated at # 2Q$, fna lloor, Kubera Towcrs, Narayanaguda, Hyderabad' It is further submitted Lhat thc entire operations are in line with the registered by-1aws ald are strictly conducted by the 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 their obligation s with ' 'l'.aw and guidelines and. directions as contemplated under 2 maintaining all statutory records. It is further submitted that as part of the main activity, the Association is scheduled to a conduct "MAIRVEL At_L INDIA OPEN FIDtr RATING CHESS 2024" starting from 01 .O5.2024 to CHAMPIONSHIP

08.05.2024

3. '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. 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 i: J cr.rrrent account, they are not in a position to pay the advance payment or release post function payments.

5. Aggrieved by the action of respondent No.2, the petitioner made a representation on O3.O5.2O24 and requested for immediate action' When such efforts went in vain, the petitioner society filed the present Writ Petition.

6. The Senior Manager of respondent No'2 Bank filed counter submitting that the petitioner claims to be the elected member of the Society's executive committee. I-lowever, another member by name Major K.A.Shiva Prasad claims to be the newly elected memberofadifferentexecutivebodywiththesameAssociation and submitted an extract of Minutes of Association's General Body meeting held on 23.04.2023. lt is further submitted that there is an internal dispute among the members and the bank had received ietters dated 23.o2.2024 and 26.O2.2024 enclosing the Minutes of General Body meeting of the Association held on

23.04.2023, which discloses that a new body of the Association elected Mr. K.A.Shiva Prasad and Mr. M.Anjaiah as President and Vice President of the Association, who has informed to freeze the current account of the Association, as there are disputes amongthemembersoftheAssociation.Itisfurthersubmitted that the petitioner was informed about the letter for freezing the 1 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 5 Section 23 of the Telangana Society Registration Act' 2001 and eventually prayed to dismiss the Writ Petition'

7. This Court on 09.05.2024 passed the following order: " Heard Sri Daraboina Subramangann Yadau, learned counsel for the petitioner. 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 association is freezed bg respondent 'assigning onA reason The petitioner has io.2 u.,ittnut aiready prefened i detailed representation dated 03 05'2024 ;;;;;g'di-7r."r" of account and for assigning reason for freeziiq the account. He further submits that titt date neither '";;;;,i is de-freezed no, ,ny reason is assigned for taking such drastic action- Nobody entered appeorance euen in the pass-ouer round' As an intenm measure and- 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" ' Learned cou.nsel for respondent No'2 - Bank submits that 8 the petitioner's representation was already disposed on 23.Cl5.2024, as submitted by 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 answered by way of their reply to the petitioner's representation' g . Learned. counsel for the petitioner submits that the said letter was not marked to the petitioner' lo.Percontra,learnedcounselfortherespondentfurther d.raws attention of the court to the subsequent communication ,"' 6 -i\ 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 11 Learned counser for the respondent further submits that disposir-rg the petitioner,s this Writ petition has alreadv has been referred rn the the order dated 23.O5.2024, representation, the relief sought in been ansvye red- dnd the sarne subsequent gommunications. 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. 13. Heard the learned counsel for the petitioner and the learned counsel for the respondent No.2 _ Bank. 74. 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 \ i I i 7 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.

15. With these observations, with consent, this Writ petition is disposed of. There shall be no order as to costs. As a sequel, miscellaleous applications pending in this petition, if any, shall stand closed. I \ To, //TRUE COPY// 'l SRINIVASA REDDY STANT REGISTRAR SECTION OFFICER

1. The Sp. Chief Secretary, Finance Department' Dr B Ambedhkar Secretariat, T.S..Hvderabad. iti'b7,""Jri[ii'.ager, Central Bank of India, Fathemaidhan Branch' Hvderabad. iji'i,"cCiJ snl s uBRAMANYAM DARABoI NA,. Advocate [oPUC] i;; d6.'i."Gi FOn Frr.rAi.rcE'pr_Ar.rr.ur.rc ,Hish court forihe state of Telanqana at Hyderabad [OUTI o# ic'i; siir.'vrerru sntutVns REDDY, Advocate [oPUC] Two CD CoPies 2 4 5 Lt M B LS HIGH COURT DATED:0510812025 ORDER WP.No.13314 of 2024 \ .-. Sj ;4 i:- \ ,/ri . ' i: ?2 StP 2$6 ill r;5q,.. .1i:, r r DISPOSING OF THE WRIT PETITION WITHOUT COSTS