The High Court · 2025

6. M/s Sri Sarawathi Educational Society, Rep by its authorised person O/o Keshava Reddy Nagar, Kowluru Village, Panyam mandal Nandyal - 518112 ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of N/andamus or any other appropriate Writ declaring GOMS No. 119 Home (General. A 2) Department dated 0111112016 to the extent of Sl.No.1 of Annexure ll attaching property situated at Edhira Village Registration and Sub- Registration District Mahabubnagar, Mahabubnagar Mandal, Appannapally Gram Panchayat, Appannapally H/o Edira Village Limits, consisting of Land in Survey No. 314/eg admeasuring Ac. 3-01 Gts. Hectares 1-21 and Survey No. 314/e9 admeasuring Ac. 0-07 112 Gts. Hectares 0-O7 112 and Survey No. 315/6s admeasuring Ac. 1-31 112 Gts. Hectares O-71 112, total extent Ac. 5-00 Gts. more particularly described in the schedule hereunder mortgaged in favour of Petitioner bank as illegal, arbitrary, contrary to law and consequently set aside the same and consequently permit the Petitioner bank to enforce its rights against the said property. lA NO:'l OF 2025 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 GoMS No. 119 Home (General. A 2) Department dated 0111112016 to the extent of Si. No. 1 of Annexure ll. Counsel for the Petitioner: SRI MANAV GECIL THOMAS Counsel for the Respondent No.1: Gp FOR HOME Counsel for the Respondent No.2: Gp FOR REVENUE Counsel for the Respondent No.3: SRI B.RAJESHWAR REDDy, cP FOR HOME (AP) Counsel forthe Respondent Nos.4 TO 6: -- The Court made the following: ORDER TI{ H B I'H CHI U ICE A? RE Ktl GH AND T EH -o-der, BL SRI STI Wri Petiti onN .2 7991 of 2025 EG M IUD IN Hearc{ N{r. Nfarrar. (lecil 'l'homas, learned counsel for the pctirioner and rVr. B.Rajeshrvar Reddy, learned Governmenr Pleader For rhe Sratc of Andhra pradcsh appearing for rcspondcnt No.3

2. Peririoner is the Bank rvith rvhom certain immovable properries describccl ar paragraph 6 of thc writ affidavir, falling rvrrhin rhc rerrirotial jurisdicuon of the State o[ Telangana, were m()rr{ragcd aeainst the credit facility availed bv prir.are respondenr No.4 in the year 2013. Privatc respondcnrs and 6 arc thc guarantors. Out of the mortgaged pr:opemies, the No.5 immovable properries clescribecl ^t para 9 of the rvrit affidavit were artachecl by dre Clor.crnnrenr of Ancihra 2 Pradcsh tide G.O.Ms.No.119 Flornc (Gcncral-A2) Departn-rent dated 01.1 1.2016

3. Petitioner-Bank has iniuatcd proccedings under the Recor.ery of Dcbts and Bankr-uprcy ,:\c, i993 ([or short 'tlrc Dcbt Recovery Act'), by fiiing ().A.No.3586 of 2017, which has becn decreed on 30.12.2024 in its favour. Pcdrioner-Bank has also initiated procccdinrs undcr the Securitisarion and Reconstruction oI Financial ,-\ssers and Securitl- Inrerest Act, 2002 (tor short 'the S.\Ii-FAI.,SI Act') by issuing demand nodce undcr Sccrion 13(2) on 15.06.2015 and possession notice under Sccion 13(.Q on 01 .09.2015 to respondenr No.,l/borrou.cr and respondcnts No.5 and 6 f gtarantors. ,1. Pctitioncr-Banl< has assailcd the attachment of rhe mortgagecl properties uide G.O.Ms.No.119 Home (()eneral-r\2) l)epartment dated 01.11.2016, issued bv rl-re 3 State of Andhra Pradesh in exercise of powers under Section 3 of the Andhra Pradesh protcction of Depositors of Financial Esrablishments Acr, 1999 (for short .rhe Act of 1999)

5. Learned counsel for the petitioncr-Bank submits that the impugned acrion of the Stare of Andhra pradesh is in violarion of rhe SARFAESI Act. Rcference is maclc ro Sections 26ll and 35 rhcreo[ 6 Learned counsel for the petirioner has referred to the decision rendered by a learned Single Bench of the Andhra Pradesh Hrgh Court in Canara Bank v. State of Andhra Pradesh, Department of Home (General), rep by its Principal Secretary [\i.p.No.21029 of 2Olj dated 18.06.2024], whcrcby arrachmenr of some of rhe mortgaged properries with the pedrioner_Bank under the Act of 1999 rvere set asidc, by a derai.led judgrnent, after 4 re [crring to the Provistot-ts o[ the Debt Rccor-en t\cr, S'\RFAESI Act and also the decisions rendetcd bv thc Apex Court and various other High Courts' Hou'cver' thc petitroner-Rank rvas permitted to proceed furtircr against thc rc[errerd properries under the provisions oI the S.\Rlr,\liSI Act for recovery of the dcbt lt is subrnittcd that the State of Andhra Ptadesl-r has frlcd an appcal, in rvhich an order of stdtas qur has been granted bv a leaured Divisior-r Bench of the High Court of Andhra Ptadesir 1 . Lcarncd counsel for the petitioner subrnits that since thc propcrties were mortgaged with the branch of thc pcritioncr-L3ank situated in Hvderabad, Statc of T'elangana, ancl ti-re mortgaged prope(ties are also situated rvithin thc tcrritoriai iurisdiction of the State of Telangana, ti-rc yurisdiction of this Court has been invohcd 5

8. Learned counsel for the State ofAndhra pradesh has taken an objection ro rhe mainrainabilifi. of rhe rvr-it petitlon before this Courr on the ground that rhe proceedings for attachmenr rrnder the Acr of 1999 have becn initiated on the basis of criminal cascs insritured against the private respondenr No.4 for cheating the small_ urnc dcpositors. Criminal casc as rvcll as attachment proceedings under the z\ct of 199() fall under rhe jurisdiction of the Special Court cre ated under Se ctio n 6 of the said Act. Reference is maclc to Section 7 of the Act of 1999, which provides a mechanism for hearing the objections and claims of persons inreresred in tl,rc properry attached, before the interim atrachmcnr is made absolure. It is submitted that rhe petiuoner has approached this Court in 2025, while the order of attachment clates back to 01.11.2076. Petitioner has not made any statement as to rvhether the attachment has becn made absolute. It is 6 further subrnirted that the Act o[ 1999 ptovides a remedv oI appcal r,rnclcr Sectiorr 11 be fore the Fligh Court r'',ithin thu'tr, dals of sr-rch order. It is also submittecl that the Special Court falls rvithin the supcrwisory jurisdicrion o[ the IIish Court oI Andhra Pradesh. Petitione.--Bank has also rnor-cd Andhra Pradesh lligh Court against such pror-isior.ral attachment of the mortgapSed properties and thc sublecr rratter is prcsentllr in appeal before a learned Division lJcnch oI the High Court of Andhra Pradesh.

9. I-carnccl counsel for the State of Andhra Pradesl-r also refers to Scction 177 of Code of Criminal Proccdurc, 1973 (for short 'CI.P.C.'), which prescribes jurisdictior.r o[ thc concerned Cnmrnal Court to be thc rvhcre the cause of action Lies. In such cu'cums ranccs, it is submitted that merely because the subjcct propcrtics lie ..vithin the State of Telangana and the 7 brancl-r of petirioner-Bank, which advanced credit facilities also lics within the Stare of Telangana, this Courr should no t entertaln such a claim. Therefore, the Writ perition may be dismisscd as not maintainable. i0. We have considered the submissions of leamecl counscl for the partics, taken note of rhe relcr.ant matcrial facts placed on record and also the d e cision rendered by, a learneci Single Bench of the High Court of Andhra Pradcsh in similar issuc raised by the peurioner-Rank. . 1 1. We have also gone through the provisions oI thc Act of 1999, SAIIFAESI Act and the Debt Recovery Act. 12 ,\t the outset, v/e may observe that the cause of action for agitating the grievance arises out of attachmcnt ptoccedings under Section 3 of Acr of 1999, issuecl by rhe (lovernmenr of Andhra pradesh uitte G.O.N[s.No.119 8 Home (Gencral-.\2) Department dated 01'11'2016 Such attachment o[ thc sr-rbiect properties mortgaged rvith the pctitioner-Bank lies rvithin thc lurisdiction of tl-rc Special Court undcr thc i\ct of 1999 and in rcspect of rvhich crirrrinal cascs havc bccn insritutcd against the privatc respondeut No.J [or deftauding smail-time depositots

13. Scctior-r ,r oI the Act o[ 1999 provicles fot 1 procedurc ro bc follorvcd bv tl.rc Special Court bcforc the ordcr of intcrim attachmcnt is made absolute. Thc wtit afficlar.it does ttot cotltain anv averment as to w-hcther the attachment has becn rnade absolute by the Special Court Section 11 of the -.\ct o[ 1999 also provides a remedl' of appeal to an agsrieved person including the cornpctent authorih'. l'he zittachment procecdings are arising out of criminal proceediuus initiated against the pdvatc respondcnt N o.4 ancl othcts fot defrauding small-umc 9 depositors and as such, the cause of acdon to suci.r crirnir-ral proceedings also lies before the concerned court in rerms of Secrion 177 of Cr.p.C. ,fhe Hgh Court o[ .\nclirra Pradesh has the super-visorry jurisdiction oveL such .SpcciaI Court. 'l'he pedrioner himself has approachecj rhe I iilrh (-or-rrr of -\ndhra praclcsi.r against onc such orcier of atraclrmcnt in ltrcbruary, 2017, jn rvhich thc lcarncd rvrit courr has also granted relief. -fhe said subject marrer is strll lr.ins in appeal before rhe Division Bcnch of the High (-ourt of Andhra l)radesh. Merely because the attachecl PrrPcrticrs tall ivithin the territoriar jurisdictron of rhc Srate oi'I-clangana, the pcdrioner_Bank shoulcl not be aliorved t, i,r-.ke the rvrit jurisdiction of this Court, when thc r\cr ol 1()99 prc_x,ides special procedure fot making such attachmcnts. ,\s such, the cause of acdon adsing out of such arrachmenr lies within the territorial jurisdiction of tlte Fligh (-ourt of ;\ndhra pradcsh. -I'hereforc. we arc n()r I \ :: l0:: inclinedtocntertaint['rc\\'ritPctiuononthepointo[ jurisdiction.

14. Florvcver, the petitiontrr is at lilrcrfi' lo inwlkc approptiate procccdings bc [otc the competent court having jurisdiction' I ). The instant \Xrrit Petiriolr ls, accotdingiv, dismisscd No costs. r\s a sequel. tnisccllrt trco trs l)ctitions, pencling iI anv' stand closed. //TRUE COPYII M I $ JAWAHAR REDDY TANT REGISTRAR ECTIO FICER One CC to SRI MANAV GECIL THOIVAS, Advocate Two CCs to GP FOR HOIME, High Court for the Stat Hyderabad. [OUT] Two CCs to GP FOR HOtt/E, High Court for the State of Andhra Pradesh, at Amaravathi. [OUT] Two CD Copies PUCI f Telangana, at o To 1 2 3 4 PSK. LS l HIGH COURT DATE D : 1 310812025 ORDER WP.No.21991 of 2025 .-ar:'-. a,..)t' -t iri-- li . \)r 21 SEP 2U5 i:: 1.. i..i 1..! :_l ..- .t .. i:' DISMISSING THE WRIT PETITION WITHOUT COSTS It?