The High Court · 2025

...RESPONDENTS Petition under Articre 226 of the constitution of lndia praying that in the circumstances stated in the affidavit fired therewith, the High court may be pleased to. i. rssue an appropriate writ, order, or Direction-preferabry in the nature of Certiorari or Mandamus_quashing/set aside the impugned G.O. Rt No 'r059 dated 2711112024 and the consequentiar directions issued by ccs, Hyderabad, to the extent they seek to prevent compretion of sare/registration of the property (Frat No. c-s04, chinhita Brock, Vadlamudi praza, Gorapudi Apartment' Vijayawada, Ap) in favour of the auction purchaser or otherwise hinder rights accrued under SARFAESI Act ii. Declare that the auction sale completed under SARFAESI Act in respect of the above property is valid and not affected by the subsequent attachment order, and direct the concerned Sub- Registrar to complete the registration process in favour of the auction purchaser iii. Restrain the Respondents, their officers and agents, from taking any coercive or adverse steps affecting the Petitioner's rights as secured creditor and the rights and interests of the auction purchaser in the above property iv. Direct the Respondents No.1 to 4 not to interfere with the peaceful possession of the Auction Purchaser v. Direct the concerned Sub-Registrar to register the Schedule Property in favour of the Auction Purchaser without reference to the subsequent attachment Counsel for the Petitioner: SRI N. B. SUDARSHAN Counsel for the Respondent Nos. 1to4: GP FOR HOME Counsel for the Respondent Nos. 5&6:-- The Court made the following: ORDER 0 4 i.c , 4 :I THE HON'BLE JUSTICE MOUSHUMI BHATTACHARYA AND THE HON'BLE JUSTICE GADI PRA\IEEN KUMAR WRIT PETITION NO.26359 OF 20.25 Mr. N.B. Sudarshan, lcarned counsel appearing for the petitioner. Mf. Mahesh Raje, the learned Government Pleader for Revenue appearing for respondent Nos. l to 4. ORDER: (Per Hon'lcle Justice Moushumi Bhattacharya)

1. The present Writ Petition has been liled against the communication dated 04.O4.2025 issued by the Inspector of Police, Office of the Assistarrt Commissioner of Police, EOW Team-X, CCS, DD, Hyderabad, restraining the petitioner from taking any further action rvith respect to the auction and registration of the schedule property owned by the respondenl. Nos.S and 6 as the property had been attached in Crime No.266 of 2023 by the G0vernment of Telangana uicle G.O.Rt.No.1059, Home (Passports) Department dated 27.11.2024 and the matter had become sub.judice,

2. The property rvhich is a flat located in Vijayawada, Andhra Pradesh, was mortgaged .to the petitioner and subjected to a Possession Notice dated 20.o5.2024 issued by the petitioner owing to the defaurlt on loan repayment on \ 2 \ the part of the respondent Nos.S and 6 (Borrower and Co- Borrower respectively) .

3. Learned counsel appearing for the petitioner submits that the petitioner has already initiated proceedings against the respondent No.5/borrov/er under the provisions of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security lnterest Act, 2OO2 (SARFAESI Act) and the said proceedings have almost reached completion.

4. The learned Government Pleader for Home submits that the impugned communication was issued pursuant to the attachment of the schedule propert5, under section 3 of The Telangana Protection of Depositors bf Financial Establishments Act, 1999 (1999 Act) and the provisions of the 1999 Act allow the petitioner to approach the Special Court against the impugned communication.

5. We accept the submission made on behalf of the learned Government Pleader since the 1999 Act is a special enactment designed for protecting the interests of depositors against Financial Establishments. 3

6. The respondent No'5 along with others had collected huge deposits from certain persons on the pretext of investment in his Fast Moving Consumer Goods business for good profits but failed to repay the amounts hence the case in cr. No. 266 of 2023 was registered against him'

7. It is relevant that section 7(1) of the L999 Act gives certain powers to the Special Court regarding attachment of properties including the power to issue show cause notice to the concerned Financial Establishment or to any other person whose property is attached under section 3, as has been done in the present matter. section 7(3) authorizes any person claiming interest in the attached property, irrespective of notice being served ;,o:" himfher, to file an objection before the special court at any time prior to the ad-interim order of attachment being made absorute under sub-section (4) or sub-section (6) of section 7' 'speciar court'is definecl in section 6 ol.'th" 1999 Act and 'competent Authority, empowered to exercise control over the properties attached by the Government under section 3 is definecl in sections 2(a) and 4 of the 1999 Act. Further' any person incruding the competent Authority, if -'-!-:,---:- \ \ 4 aggrieved by an order of the special court, may appeal to the High court within thirty days of such order under section 11 of the said Act.

8. The above provisions make it clear that the petitioner has an efficacious alternative remedy under the 1999 Act' Hence, this is not a case where the High Court can exercise its power under Article 226 of the Constitution' g. The petitioner is granted leave to approach the competent forum and make an appropriate application' 10. The learned Government Pleader informs the Court that such an application has already been fited by the t, petitioner'

10. W'P'No'26359 of 2025' along applications' is accord'ingly disposed order as to cclsts' with all connected of. There shall be no BAIG TRAR ,,TRUE COPY" SECTION OFFICER To' iffiH8fY"["#i[}#,+."tiff[ltH$s"flF}'$t*i.i#ff*tu}* 7 t,. !

3. The A-ssistant Commissioner of Police, EOW Team-X, CCS DD Central Crime 9tation Building, old commissioner onice, eash;ero;gh; Hyd"rroiJ, . Telangana -500029. 4- The sHo/officer-in-chgrgq, ccs DD central crime station Building, old commissioner office, Ba"sheeGgt, Hyderabad, Terangana -500029. 5. one cc to sRL N.q S-UDARSHhN, Ad;;;;t" ioFucl 6' Two ccs to GproR H'ME',#.;ir'ifrrt il"riiLtu["te of rerangana at llyderabad TOUTI -.-'- '"r: 7. Two CD Copies / BM BS % a HIGH COURT DATED:0310912025 \ ORDER WP.No.26359 of 2025 \1 I |'l E S r4 ,c c( a, o o I B r{[l/ mn -/ ,,.)F.soa;-^','-' n illirt%',l+ ? 35JJ = wRrr P Errr I o N