'I I % SPHC010261232025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) MONDAY,THE THIRTIETH DAY OF JUNE TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION NO: 13327 OF 2025 Between: 1. Gattu Chinnaswamy Amarnath, S/o. Gattu. Munaswamy. Chinna Swamy, age; 60 yrs, D no. 442/2, kavara Street, Nallavanampet(Vlllage) Pallipet (Taluk) Thiruvallur (Dist) TN-631207 2. Pemmasani. Sravan Kumar, S/o. Pemmasani. Munisekhar Naidu, age- 39 yrs, 1-3 Sri Kalahasthi Road, Pichatur(V&M) Tirupati (Dist) AP- 517587 3. K.Muniyandi, S/o. A. Kannuswamy, age-53yrs, D.No. 2/102 MGR Street, Thandal kazhani balaji nagar Ambathur(taluk) Chennai TN- 600066 4. Munuswamy. Babu, S/o. Chengaiah. Munuswamy, age-65yrs, D.NC 5/1 Kavarapalem (Village), Devadhanam(Post), Ponneri (Thaluk),TN 5. Pemmasani. Parvathi, W/o. Pemmasani .Munisekhar Naidu, age-57yrs, 1-3, Sri kalahasthi road Pichatur(V & M) Tirupati (Dist) AP- 517587 6. Pachiappan. Ramakrishnan, S/o. Pachiappan, age-52yrs, D.No.2-275, 9*^ street, pudu nagar, pukki line, Redhills,Chennai-TN-600052 7. Ettiyan. Venkatesan, S/o. Ettiyan, age-53yrs, old colony, south bazar Village, Dindivanam (Thaluk)Villupuram (Dist)TN- 8. Gunasekhar. Muthuswamy, S/o.Ganesan.Gunasekhar,age-39 yrs, D.No 993/(New) AND 27(old)Varadharapuri Ammaankoil street, khizha kottaiyur, Melakottaiyur(post)Vandalur,Chennai-TN-600048 2 8.GUNASEKHAR.MUTHUSWAMY,, S/OGANESAN.GUNASEKHAR,AGE-39YRS, 27(OLCL)VARADHARAPURI AMMAANKOIL KOTTAIYUR, 600048 D.NO 993/(NEW) AND STREET, KHIZHA MELAKOTTAIYUR(POST)VANDALUR,CHENNAI-TN- 9.YERRA.LAHARIKA, D/0 YERRA. VENKATESWARLU, AGE-36YRS, SY NO 95/L,PLOT NO 47 PUTHUR VILLAGE^ AMABATHUR(TALUK)THIRUVALLURU (DIST)CHENNAI-TN-6000 ...PETITIONER(S) AND 1.THE STATE BANK OF INDIA, Rep.by its Chief Manager, ACB Puttur Branch 580, Kapu street, Tirupathi District Andhra Pradesh ...RESPONDENT Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pleased to issue appropriate writ, order or direction more particularly one in the nature of writ of Mandamus directing the Respondent to release the mortgaged properties of the Petitioners which obtained as collateral security for the dairy plus loans availed by the 495 farmers, and to pass orders and pass Counsel for the Petitioner(S): 1. SRI DEVI GANTA Counsel for the Respondent: 1 .VENKATA RAMA RAO KOTA The Court made the following ORDER: Heard Mrs.Sridevi Ganta, learned counsel for the petitioner and Sri K.V.Ramarao, learned standing counsel appearing for the respondent. The petitioners, 9 in number, filed the above writ petition complaining of the inaction of the respondent in returning/releasing the documents offered by the petitioners as collateral security for “Dairy plus Loans” availed by 495 farmers in 49 loan accounts, as illegal and arbitrary. 2. 3 submits that 495 farmers obtained from the respondent bank under the 'Dairy Plus Learned counsel for the petitioner loans under 49 accounts Loans' scheme. The petitioners stood as guarantors for these loans. Since the farmers failed to repay the amounts, the 49 loan accounts were declared as 3. Non-Performing Assets (NPA). settled before the National Lok Adalat vide L.A.N0.73 of 2024 in Pre-Litigation Case No.205;2024. A copy of the same is filed as Ex.P.2. Later, the issue was 4. the Award, paid the entire sum of Rs. and final settlement. However, despite the said payment. The petitioners, following 36,75,000/- as full the respondent bank has not released the relevant documents. 5. 6. A counter-affidavit was filed on behalf of the respondent, wherein it was Dairy Plus' scheme were sanctioned. The settlement was eventually reached contended that loans under the petitioners stood as guarantors, and a National Lok Adalat, according to which the agreed amount was further pleaded that the Central Bureau of Investigation vide RC 01(A)/2002 against M/s. S.V. Milk and Milk before the discharged. It was (CBI) registered a case Products Pvt. Ltd., in which petitioners 2 and 5 herein have been arrayed as accused Nos. 3 and 4. The case is numbered as C.C. No. 704 of 2024 and is of the V Additional Metropolitan Magistrate, pending before the Court Vijayawada. Since petitioners 2 and 5 are accused in the said case, the respondent has withheld the release of the documents. Consideration; Thus, as seen from the pleadings, there is no dispute that the petitioners acted as guarantors in respect of the 49 loan transactions covered the Lok Adalat Award. There is also no dispute regarding the of Rs. 36,75,000/- as agreed. Since the 7. under Ex.P.2 - petitioners having paid the sum petitioners have discharged the loan liability in their capacity as guarantors 4 HI . the respondent is under an obligation to return and release the documents mortgaged as collateral security. 8. Reserve Bank of India issued Circular No.RBI/2023-24/60, DoR.MCS.REC.38/01.01.001/2023-24, dated 13.09.2023, setting out directions regarding the release of movable/immovable property documents. The criminal case registered against the petitioners 2 and 5 herein has nothing to do with the loan transaction referred to supra. The bank cannot retain the documents despite the payment of the loan amount. The stand taken by the bank is not only illegal but also arbitrary. 9. Given the facts and circumstances of the case, the Writ Petition is disposed of with a direction to the respondent to release and return the documents mortgaged by the petitioners in connection with the 'Dairy Plus Loans', as referred to in L.A. No. 73 of 2024 in P.L.C. No. 205 of 2024, before the Lok Adalat Bench, Mandal Legal Services Committee, Puttur, keeping in view the directions given by Reserve Bank of India and the loan was discharged, within two (2) weeks from the date of receipt of a copy of this order. There shall be no order as to costs. 10. As a sequel, pending miscellaneous petitions, if any, shall stand closed. Sd/- M. SRINIVAS ASSISTANT REGISTRAR //TRUE COPY// ffO^^FiCER SEC To, Bank of India, ACB Puttur Branch 580, Kapu 1. The Chief Manager, State street, Tirupathi District, Andhra Pradesh 2. One CC to M/s. Sridevi Ganta, Advocate [OPUC] 3. One CC to Sri Venkata Rama Rao Kota, SC for SBI[OPUC] 4. Two CD Copies. ssb ✓ HIGH COURT • • DATED:30/06/2025 ORDER WP NO.13327OF2025 DISPOSING OF THE W.P. WITHOUT COSTS