Sri. Muppadi Venu v. IDBI Bank Ltd

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 writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents 1 and 3 in not releasing the original documents. w huch were mortgaged with the 2nd respondent bank towards the security of petitioner as guarantor, towards the security against loan accounts of borrowers i.e., 1) Sri. Kamana Naga Shiva Kirshna Goud, loan Account No- 0441655100000198, 2) Kodati Malles-u ari, loan Account No- 0441655100000222, 3) K. Naga Subramanyam, loan Account No- 0441655100000204, 4) K. Venkata Kanaka Durga Rao, loan Account No- 0441655100000213, 5) Sri. M. Venkataramana Chowdary, loan Account No- 0441655100000268, 6) Sri. M. Venkatesvartu. loan Account No- 0441655100000231, 7) Chitikina Edukundala. loan Account No- 0441655100000189, B) Sri. Padala Rama Reddy, loan Account No- 0441655100000259, 9) Sri. Vedulla Gayathri Prasanna Kumar, since entire loan amount was cleared as a guarantor on behalf of borrowers and No Dues Certificates were issued by the 2nd respondent on 25-06-2025 in respect of all nine loan accounts without reference to the pending investigation or trail of criminal case vide FIR No-. RC. 06 (Ay201B/CBI/HYD dated22-03-2025, is illegal, arbitrary. unjust, u nco nstitutio na I and in violation of principles of natural justice, and consequently direct the respondents 1 and 3 to release the original documents, which were mortgaged as security for subject loan accounts petitioner as guarantor, immediatelY. I.A.NO:1 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 direct the respondents 1 and 3 to release the original documents, which were mortgaged with the 2nd respondent bank towards the security against loan account of the petitioner as guarantor i.e 1) Sri. Kamana Naga Shiva Kirshna Goud, loan Account No- 0441655100000198, 2) Kodati I\4alleswari, loan Account No- 0441655100000222, 3) K. Naga Subramanyam, loan Account No- 0441655100000204,4) K. Venkata Kanaka Durga Rao. loan Account No- 0441655'100000213, 5) Sri. M. Venkataramana Chowdary, loan Account No- 044'1655'100000268, 6) Sri. lU. Venkateswarlu, loan Account No- 0441655100000231, 7) Chitikina Edukundala, loan Account No- 0441655100000189, 8) Sri. Padala Rama Reddy, loan Account No- 0441655100000259, 9) Sri. Vedulla Gayathri Prasanna Kumar, since entire loan amount was cleared as a guarantor on behalf of borrowers and No Dues Certificates were issued by the 2nd respondent on 25-06-2025 in respect of all nine loan accounts without reference to the pending investigation or trail of criminal case vide FIR No-. RC. 06 (A)l2llBlCBllHYD dated- 22-03-2018, immediately, pending disposal of the writ petition. ,-.-r- Counsel for the Petitioner : M/s P.RADHIKA Counsel for the Respondent Nos.1 & 2 : SRI PARDHA SARADHI KATAMANENI Counsel for the Respondent No.3 : SRI T.SRUJAN KUMAR REDDY, SPL PP FOR CBI The Court made the following ORDER -a-- IN THE HIGII ('oIIRT FOR I'HF,, S'IATE OF TELANGANA AT HYDERABAD TH E HONoI ]RAI}I-E SMT. .I T]S-I-ICE RENUKA YAI{A \\ Rll'PL.TITION No.-197t9 of 2025 t'I|t] 27'r, DAy O[ .f Ar\t]AIty.2026 Ilchleen: Sri. Muppadi Venu \\l) IDBI Bank Ltd. arrd I others ()II.DER: . . Petitioner . . . Rcspondents 'fhe writ pctition is flled seeking thc fbllcxving reliet: ". .. to issue *'rit. or ordcr or direclion more pa(icularly one in thc naturc ol' Writ ol' Nlandanrus declaring the action o[' respondent Nos,l and I in not rcleasing the original documents. u,hich wcrc nrortgaged u ith rcspondc'nt No.l bank towards the sccurity ol'pctilioncr as guarantor- tuu.ards the security agairrst loan accoullts of honos, crs i.c. l) Sri. Kamana Naga Shiva Krishna (ioud. loan Account No.04{165510()000198. 2) Kodati Mallesu'ari. loan .\ccour.tl No.0-{-ll6-i510()0(t0))2.,i) K. Naga Subrarrrartlarl. loan .,\ccounl No.0-14 I 655 1000001()1, 4) K. Ioan Accounl Venkata Kanaka l)urga l{ao. No.04:ll(r5510000011 j. -i) Sri. M. Venkatararnana ('howdary. Iuan Account No.0.l-11(r,i 5 I00000161i. 6 ) Sri. IVI. Venkatcswarlu. Account loan No.0.1-l I 6i 5 1000001.1 i . 7) Chitikina Edukundala. loan .\ccount No.0.1.11 655100(Xn l 89. 8) Sri. Padala Ranra Rcdd1. loan .,\ccount No: 0,1.1I 655 I 000002-59. 9) Sri. Vedulla Gal, athri l)rasanna Kumar. since entire loan anrount was clearcd as a guaran(or on behall ol borrorlers and No Dues Certificates were issucd bl the 2''d respondcnt on 25-06-1025 in respect ol all nine loan accounts rvithout relerence to the pending invcstiqation or Iriiil r'r f criminal case vide FIR No.RC.06 (A)/201tt('llli HYD datcd 22-03-2025. is illegal. arbitrary. unjust- unconstitutional and in violatiorr of principles ol natural .- RY..I w.P 39719 2025 justice. and conscqucntly direct thc respondents 1 and 3 to release the original documcnts. r.vhich \rere l.nortgaged as security tor sub.icct loan accounts petitioner as guarantor. imrnediatelt, ancl .....".

#2. Heard Ms. P. Radhika, learncd counsel fbr the petitioner, Sri Pardha Saradhi Katamaneni, lcamcd star-rding counsel for respondent Nos. I and 2 and Sri T. Sru.ian Kumal Redd1 , lcamed Special Public Prosecutor lbr CBI appearing l'or respondenl No.i. Perused the entire rccord

#3. One Aadilakshmi Group represcnlcd by Muppidi Lakshman Rao obtained nine (9) Piscicultr"rrc loans ti'om respondent No.2 bank under Kissan Credit Card tbr the purpose of f-rsh falming/cultivation and the petitioner herein stood as guarantor lbr all the said loans by rnortgaging original documents. [)ue to losses in pisciculture, the bomou, ers could not repay the same and the loan u-as categorized as NPA. In that context, thc respondent No.2 initiated proceedings belbre the DR'l' fbr recovery o1- borowed amollnts and also got a cliurinal CASC registered vide FIR No.RC.06(.4)/20 lS/CBI/HYD datccl 22..03.2025 arraying the said Aadilakshrni Group represcntcd bl Muppidi Lakshmana Rao as accused No.3 and said criminal case is pending inr.estigation. Meanwhile, the petitioner participated in the Or.re 'l-irne Setllement scheme on 07.03.2025. At the request of the petitioner. the respondent No.2 bank accepted to recover the loan amount fiom the petitioner undel OTS scheme. Pursuant 2 RY.J 'fi'.P 39719 2025 ro said agrcerne nt. Lettcr ol Approi'al dated 07.03.2025 rvas issued. The pL'titiont-'r rr ho is a guarantor cleared the entire loan atlounts on l-5.06.1015 arrrl No DLre ('ertiflcate dated 15.06.2025 was issued by rcsponderrt No.l bank. ln spite ol payrnent of the entirc loan amounts tunde r OTS sclrcnre. the docrrtnents ol'the petitioner were not released. J. There is an issue- aboLlt whether or not the docr, rrnents can be re leased in Iavour ol the petitioner wlten the inve stigation in the crirninal case is still pending. l'here is also att issue of whether the consent ol responclent No.i is required tbr respondent No.2 to approach DRT lor re lease of docul'11ctlts

#5. 'l he learned counsel lbr respor-rdent No.2 subnrits that the petitioner catlnot seek release of docutnents as a Inatter ol'right since the crirninal case uhereir.r liaud is alleged is still pending and said docunlents are recluired tbr investi gation I I

#6. l'he le'arned Special [)r-rblic Prosccutor appearing tirr rc'spondent No.i submits that the writ petition is tiled prenraturely as rcspondent No., bank has to gct thc docuurerrts releascd liom DR'I proceedings. After the docunrt'nts are released b1 the DRT, tl-re question ol consent ol'respondent No.3 and release of docul.nL'nts in favour of the petitioner would arise. It is also sLrbnritted that the pr.titioner has flled an allidavit beibre this Court 3 -l- RY..I w.P 397r9 2025 with an undertaking to produce the docuurerrts as and rvhen necessan to lacilitate investigation.

#7. In view of the albrententioned lacts and c irc u rnst.ances. respondent No.2 bank is directed to gct the docurnents of'the petitioner released ll'orn DRT proceedings. 'fhercalter, said documents lrav be released in f'avour of the petitioner subject to the undenaking given through alfidavit dated 2t.0t.2026.

#8. Accordingly, this Writ Pctition is disposcd of. I'herc shall be no older as to costs. ti. ,. As a sequel. the rnisccllaneoLls I)ctitions. il'ertr'. pcrrding in thc \f'rit Petition s[all stand closecl ,TRUE COPY// SD/.P.PONNA KRISH A SISTANT REG SECTION OFFICER , at lDBl Tower, WTC

#1. The Regional N,4anager, lDBl Bank Ltd, Regional Offi Complex, Cuffe Parade. Mumbai

#2. The Branch Head and DGM, IDB i Bank Ltd, Bashee[agh Branch at Mahavir House, Basheerbagh Square, Hyderabad.

#3. The Superintendent of Police, CBI/ACB Police Station, Hyderabad. 4. One CC to M/s P.RADHIKA, Advocate [OPUC] 5. One CC to SRI PARDHA SARADHI KATAMANENI Advocate [OPUC] 6. One CC to SRI T.SRUJAN KUIVAR REDDY, SPL PP FOR CBl, Advocate (oPUC)

#7. Two CD Copies To SA 4 HIGH COURT DATED:2710112026 ORDER WP.No.39719 of 2025 ( o C) l0rtBm * * DISPOSING OF THE W.P WITHOUT COSTS. K 9 t) ,j