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2025 DAILYLAW 28628 (AP)

Syndicate Bank v. Permanent Lok Adalat for Public Utility Services

WP/19081/2018 · 2025-07-21

R Raghunandan Rao, Sumathi Jagadam

body2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

APHC010407812018 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3541] TUESDAY,THE TWENTY SECOND DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM WRIT PETITION NO: 19081/2018 Between: 1. SYNDICATE BANK, REGIONAL OFFICE, 40-13-5, 3RD FLOOR, SRI RAMACHANDRA COMPLEX BENZ CIRCLE, VIJAYAWADA, KRISHNA DISTRICT REP. BY ITS REGIONAL MANAGER 2. SYNDICATE BANK, REGIONAL OFFICE, 40-13-5, 3RD FLOOR, SRI RAMACHANDRA COMPLEX BENZ CIRCLE, VIJAYAWADA, KRISHNA DISTRICT. REP. BY ITS AUTHORISED OFFICER 3. SYNDICATE BANK, CHEMMANAGIRIPET, MACHILIPATNAM, KRISHNA DISTRICT, REP. BY ITS BRANCH MANAGER ...PETITIONER(S) AND 1. PERMANENT LOK ADALAT FOR PUBLIC UTILITY SERVICES, KRISHNA MACHILIPATANAM. 2. TALLAPAREDDY SRINIVASA REDDY, S/O.VENKATA NARSI REDDY MACHILIPATNAM, BANDAR MANDAL, KRISHNA DISTRICT ...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the 2 RRRJ, & JS,J W.P.No.19081 of 2018 High Court may be pleased toto issue a Writ or direction more particularly one in the nature of a Writ of Certiorari after calling for the records relating to and connected with Award dated 02.05.2018 in PLA No.27/2017 passed by Permanent Lok Adalat for Public Utility Services, Krishna, Machilipatanam and quash or set aside the same by declaring it as illegal, arbitrary and against to the statutory provisions and the rules and to pass IA NO: 1 OF 2018 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 grant stay of all further proceedings pursuant Award dated 02.05.2018 in PLA No.27/2017 passed by the 1st respondent pending disposal of the above writ petition and pass IA NO: 2 OF 2018 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 vacate the interim order passed in WP.No. 19081/2018 dated 05.07.2018 and to pass Counsel for the Petitioner(S): 1. BALAJI MEDAMALLI Counsel for the Respondent(S): 1. S. LAKSHMINARAYANA REDDY (SC FOR APSLSA) 2. P V N KIRAN KUMAR This Court made the following: 3 RRRJ, & JS,J W.P.No.19081 of 2018 ORDER: (Per Hon’ble Sri Justice R. Raghunandan Rao) Respondent No.2 had participated in the auction conducted by the petitioners for sale of immovable property which is a residential house bearing door No.20/579-3 situated in Lakshmarao Puram, Chilakalapudi, Machilipatnam. The 2nd respondent was the successful bidder in the said auction conducted on 23.03.2017 and deposited an amount of Rs.38,50,000/- as the total sale price payable under the said auction. Thereafter, the petitioners had issued a Sale Certificate dated 21.06.2017. However, the same could not be registered on account of certain objections raised on the title and right of the persons who mortgaged the property to the petitioners. 2. In view of the delay in the registration of the Sale Certificate, the 2nd respondent sought refund of the auction price. As the petitioners were not willing to refund the said amount, the 2nd respondent approached the Permanent Lok Adalat for Public Utility Services, Krishna, Machilipatnam, by way of P.L.A.No.27 of 2017. This application came to be allowed by way of an Award dated 02.05.2018 by the Permanent Lok Adalat. Under the said Award, the petitioners were required to refund the purchase price along with interest @ 6% per annum on the purchase price and pay compensation of Rs.1,00,000/-. 4 RRRJ, & JS,J W.P.No.19081 of 2018 3. The petitioners being aggrieved by the said Award approached this Court by way of the present Writ Petition. 4. During the pendency of this Writ Petition, there was a settlement between the 2nd respondent and the petitioners whereby the 2nd respondent has taken possession of the immovable property and the Sale Certificate has also been registered in favour of the 2nd respondent. 5. In the circumstances, both the 2nd respondent as well as the petitioners have submitted that the order of the Permanent Lok Adalat be set aside so as to resolve all the issues. 6. At this stage, learned counsel for the 2nd respondent would submit that the 2nd respondent had to pay large sums of money towards clearing the electricity charges, municipal dues, and other dues before the Sale Certificate could be registered and that the said amounts should be reimbursed by the petitioners. 7. Learned counsel for the petitioners would submit that the said amounts need not be reimbursed by the petitioners. 8. In that view of the matter, this Writ Petition is disposed of setting aside the Award dated 02.05.2018 passed by the Permanent Lok Adalat for Public Utility Services, Krishna, Machilipatnam, and 5 RRRJ, & JS,J W.P.No.19081 of 2018 leaving it open to the 2nd respondent to agitate his claim for reimbursement in an appropriate Court. No order as to costs. As a sequel, miscellaneous petitions, if any pending, shall stand closed. _____________________________ JUSTICE R. RAGHUNANDAN RAO __________________________ JUSTICE SUMATHI JAGADAM 22nd July, 2025 cbs 6 RRRJ, & JS,J W.P.No.19081 of 2018 THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SMT. JUSTICE SUMATHI JAGADAM Writ Petition No.19081 of 2018 22nd July, 2025 cbs