0 5 >(f I APHC010065902025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) FRIDAY,THE FIRST DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE K SREENIVASA WRIT PETITION NO: 3793 OF 2025 REDDY Between: 1. Deevi Gopala Krishna Srinivasa Ayyangar about 66 years, Krishna District. 2. Deevi Ranganayakamma, W/o. Seshacharyulu, R/o. D.No. 5-32, Atkuru Village, Unguturu Mandal, S/o. Seshacharyulu, Aged R/o. D.No, 5-32,Atkuru Village, Unguturu Mandal Aged about 86 years, , Krishna District. ...PETITIONERS AND 1. The State of A P, rep. by its PrI. Secretary, Co-Operative Department Secretariat Buildings, Velagapudi, Amaravati, 2. The Commissioner for Co-Operation Guntur District, and Registrar of Co-Operative Societies, D.No.2, Skylark Towers, 2-16-83, 11th Line, Syamala Nagar, Guntur, Guntur District. 3. The District Collector, Krishna District, 4. The District Co-Operative Officer, Krishna 5. The Deputy Registrar of Cooperative District. 6. The Krishna District Co-Operative Central Jagannadhapuram, P.O.,Maohilipatnam, Krishna District. At Machilipatnam. District, Machilipatnam. Societies, Gudivada, Krishna Bank ltd. Rep. by its C.E.O., The Atkuru Primary Agricultural Co-Operative Credit Society Ltd Atkuru, Rep, by its Secretary, Atkuru Village, Unguturu Mandal, Krishna District. 8. The President, The Atkuru Primary Agricultural Co-Operative Credit ocety Ltd., Atkuru, Atkuru Village, Unguturu Mandal Krishna District. 0: ...RESPONDENTS Petition under Article 226 of the Constitution of India circumstances stated in the affidavit filed therewith pleased to issue a Writ praying that in the the High Court may be of Writ nf M H particularly one in the nature of Wn, Of Mandamus declaring the action of the respondent No's. 1 to 6 in no. taking any action for repayment of maturity amount on the fixed deposits dt. Seven Lakhs 14-11-2014 for only) with interest @ 9.5% towards 1). dt. 18-11-2015 for of Rs. 7,85,000/-(Rupees Eighty Five Thousand Only) with interest @ 8.5% 2) Dt amount of Rs. 30,000/- (Thirty Thousand the 1 an petitioner, 3).dt. 02-05-2019 for Thousand Only) with interest @ ~ rate of 8% by the respondent Nos. Article 14, 19 and 21 Provisions of A.P. Co operative Societies Act, 1964 and consequently direct fill .he“'' r ''' "" the date of realization in the interest of Justice. an amount of Rs. 50,000/- (Fifty 7.5% to the 2'^'" Petitioner with interest at the 7 and 8 as illegal, arbitrary and violation of the Constitution of India of and also against the lA NO: 1 OF 9noK Petition under Section 151 CPC in the affidavit filed i - e ate of realization, pending disposal of the pending disposal of the above writ petition. praying that in the circumstances stated m support of the petition, the High Court may be pleased Writ Petition Counsel for the Petitioners: Counsel for the Respondent Nos. Counsel for the Respondent No.6: Counsel for the Respondent Nos. The Court made the following order: SRI SIVA RAMA KRISHNA KOLLURU 1 to 5:GP FOR COOPERATION 7 & 8: SRI T. N. M. RANGA RAO APHC010065902025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3327] FRIDAY, THE FIRST DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE K SREENIVASA REDDY WRIT PETITION NO: 3793/2025 Between: 1.DEEVI GOPALA KRISHNA SRINIVASA AYYANGAR,, S/0. SESHACHARYULU, AGED ABOUT 66 YEARS, R/0. D.NO. 5-32,ATKURU VILLAGE, UNGUTURU MANDAL, KRISHNA DISTRICT. 2.DEEVI RANGANAYAKAMMA,, W/0. SESHACHARYULU, AGED ABOUT 86 YEARS, R/0. D.NO. 5-32, ATKURU VILLAGE, UNGUTURU MANDAL, KRISHNA DISTRICT. ...PETITIONER(S) AND 1.THE STATE OF A P, REP.BY ITS PRI. SECRETARY, CO OPERATIVE DEPARTMENT, SECRETARIAT BUILDINGS, VELAGAPUDI, AMARAVATI, GUNTUR DISTRICT. 2.THE COMMISSIONER FOR COOPERATION AND REGISTRAR OF COOPERATIVE SOCIETIES, D.N0.2, SKYLARK TOWERS, 2-16-83, 11TH LINE, SYAMALA NAGAR, GUNTUR, GUNTUR DISTRICT. 3.THE DISTRICT COLLECTOR, KRISHNA DISTRICT, AT MACHILIPATNAM. 4.THE DISTRICT COOPERATIVE OFFICER, KRISHNA DISTRICT, MACHILIPATNAM. 5. THE DEPUTY REGISTRAR OF COOPERATIVE SOCIETIES, GUDIVADA, KRISHNA DISTRICT. 6.THE KRISHNA DISTRICT COOPERATIVE CENTRAL BANK LTD, REP. BY ITS C.E.O., JAGANNADHAPURAM, P.O.,MACHILIPATNAM, KRISHNA DISTRICT. 7.THE ATKURU PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LTD, ATKURU, REP. BY ITS SECRETARY, ATKURU VILLAGE. UNGUTURU MANDAL, KRISHNA DISTRICT. 2 8.THE agricultural COOPERATIVE ...RESPONDENTfS): that in thfrir"'"''®', Constitution of India praying Hroh Court ma?K therewith, me nign Court may be pleased to ’ ,. issue a Writ or direction or ord^sr thrLfinn"^f fh'^'' “atittamtis declaring ^avr^ent f N°'=- ^ t° « it tot taking any action for ®tt°t.tt on the fixed deposits dt. 1) dt 18- 1^2015 for an amount of Rs. 7,85,000/-(Ruoees Seven i eJhc r Only) with interest @ 8.5percent, 2). Dt 14- inwit ^°’°°°'- Thousand only) with St @ 9.5percent towards the 1st petitioner, 3) dt 02-05-2019 for an amount of Rs. 50,000/- (Fifty Thousand Or^lW w^ interest @ 7.5percent to the 2nd Petitioner with interest at the rate of Spercent by the respondent Nos.7 and 8 as illegal arbiLrand Violation of Article 14, 19 and 21 of the Constitution of IndH and also against the Provisions of A.P, Co operative Societies Act 1964 and consequently direct the respondents amounts with interest at the rate of Bpercent realization in the interest of Justice to pay the matured , till the date of lA NO: 1 OF 209!^ Petition under Section 151 support® of ml petitim the High Court may be pleased to direct the respondents to repay the matured amounts with interest at the rate of 9% till the date o^f Stl°o^®SXr “ -^ing dfsp‘o\:| Counsel for the Petitioner(S): 1.SIVA RAMA KRISHNA KOLLURU Counsel for the Respondent(S); 1.TN M RANGA RAO 2.GP FOR COOPERATION The Court made the following: THE HONOURABLE SRI JUSTICE K. SREENIVASA REDDY WRIT PETITION N0.3793 OF 2025 ORDER: - This Writ Petition is filed seeking the following relief; “may be pleased to issue a Writ or direction or order more particularly one in the nature of Writ of Mandamus declaring the action of the respondent Nos. 1 to 6 in not taking any action for repayment of maturity amount on the fixed deposits dt. 1) 18.11.2015 for an amount of Rs. 7,85,000/- (Rupees Seven Lakhs Eighty Five Thousand only) with interest® 8.5%, 2). Dt. 14.11.2014 for an amount of Rs.30,000/- (Thirty Thousand only) with interest @ 9.5% towards the 1^‘ petitioner, 3). Dt 02.05.2019 for an amount of Rs.50,000/- (Fifty Thousand only) with interest @ 7.5% to. the 2”"' petitioner with interest at the rate of 8% by the respondent Nos.7 & 8 as illegal, arbitrary and violation of Article 14, 19 and 21 of the Constitution of India and also against the Provisions of A.P. Co-operative Societies Act, 1964 and consequently direct the respondents to pay the matured amounts with interest at the rate of 8%, till the date of realization in the interest ofjustice. ” 2. The contents of the affidavit filed in support of the Writ Petition, in brief, are that, the respondent No.7 is a Society registered under the Andhra Pradesh Cooperative Societies Act, 1964 and solely responsible by having all administrative powers, 2 whereas, respondent No.8 is the elected/nominated of the said Society; that the representatives of the State, representative respondent Nos.7 and 8 are the governed by its bye-laws and respondent No.7 office is functioning under the control of respondent Nos.1 to 6. The object and aim of the Cooperative Societies are to provide for voluntary formation of Cooperative Societies reliant business enterprises, based on thrift, self-help and mutual aid and owned, managed and controlled by their economic and social betterment and for the therewith or incidental thereto; that the members for matters connected respondent No.3 i.e. the District Collector is having overall general control district. over the entire (b) Respondent No.7/Society established Unguturu Mandal for the benefit of famers beneficiaries; that the respondent Nos.1 to 6 have in Atkuru village. and other ancillary been regularly visiting and verifying the records of respondent No.7 by conducting auditing and supervising over 7**^ respondent’s society. (c) Respondent No.7/Society accepts fixed deposits from the members as well as general public; that the petitioner No.1 was having children and for the purpose of their education and petitioner made fixed deposit. marriage, the family members of 1 3 for an amount of Rs.30,000/- on 14.11.2014 and Rs.7,85,000/- on 18.11.2015, in respondent No.7 society vide Receipt Nos. 1106 and petitioner entitle for an amount of Rs.32,953/- and Rs.8,53,882/- towards maturity value on 14.11.2015 and 18.11.2016, respectively at the rate of 8.5%; that the respondent Nos.7 and 8 did not pay the matured amount on 14.11.2015 and 18.11.2016 and got renewed the fixed deposits on 1270, respectively; that 1 14.11.2022 and 18.10.2022. Petitioner No.2, mother of 1®' petitioner, also made a fixed deposit in respondent No.7/Society for an amount of Rs.50,000/- on 02.05.2019 vide Receipt No.1738 and the maturity amount as on 02.05.2020 was Rs.54,122/- and after the said date, the matured amount has to be paid at the rate of 7.5% by respondent Nos.7 and 8, but they did not pay the matured amount 02.05.2020 and got renewed the same on 18.10.2022. The petitioners approached respondent Nos.7 and 8 and requested them to settle the due amounts, but they did not pay the amount and informed them that they were not having funds as the amount was misappropriated by some staff working in respondent No.7/Society. (d) on (e) 4 (f) A case in Crime No. 1108 of 2023 was registered against one S.Sankara Rao (CEO of Atkuru PACS) and K.Siva Kumari (Cashier) for misappropriating the funds of respondent No.7/Society and the investigation is pending. Respondent Nos.1 to 6 conducted inquiry and admitted that the amounts misappropriated, but they did not take any steps for payment of maturity amount on the fixed deposits. Since the respondent Nos.1 to 6 are not taking any action against respondent No.7/Society for payment of deposited amounts, the petitioners filed the present Writ Petition. were Respondent No.7/Society filed counter denying the contents of the affidavit inter alia it is contended that the deposits narrated in the affidavit are renewed subsequent to the maturity period and the fact remains that, the society records does not reflect such renewals. Apart from that, the petitioners claiming the percentage of interest etc., which is also a disputed one, because the fixed deposit receipt itself indicates maturity amount as it was occurred than the rate of interest payable by the society, and in case of renewal was not occurred in due course, the depositors claiming the rate of interest at 8.5% is not correct. It is further contended that when the fixed deposit amount is with the society. 3. 5 the depositors may claim general interest at 4% per annum, since the society, in other cases also, used to pay interest at 4% per annum. The renewal was not occurred in due course and the society records does not show or prove the renewals. That in respect of fixed deposit made by the petitioners, there is no entry of renewal available in society records; that as per the petitioners, the first renewal was 02.05.2022, which indicates that there was no renewal occurred within two years after 02.05.2020. The petitioners had shown as if renewal occurred and claims the rate of interest at 8.5% per annum, which is not permissible as per law and the claim of petitioners cause unbearable burden to the respondent No.7/Society. The respondent No.7/Society, after ascertaining the genuine depositors, would pay interest at 4%. The receipts of deposits indicate the signature of the Officers, whereas, the society records does not indicate signature of the Officers or authorized signatures on alleged renewals; that the respondent Nos.7 and 8 never denied to pay the deposited amounts as per records available in society as per the procedure, whereas, the petitioners never came forward to receive the maturity amount within time and never renewed the same within stipulated (b) (c) , ' V 6 time and that the petitioners blamtng the society and trying to get more interest without renewal of the matured amount and in such case, the petitioners are entitled to get interest at 4% per annum as per general procedure of the society. The alleged renewals and the interest claimed by the Writ Petitioners at the rate of 8.5% per annum are contrary to the procedure of the society in the absence of renewal obtained by them. Hence, it is prayed to dispose of the Writ Petition by giving liberty to Z'*" respondent to conduct enquiry and to pay interest at 4% per annum after ascertaining the total amount of the Writ Petitioners. Heard the learned counsel for the petitioners and 4. learned Government Pleader for respondent Nos.1 to 5 and learned Counsel for respondent Nos.7 and 8. There is no dispute with regard to the fixed deposit 5. St petitioner for an amount of Rs.7,85,000/- on made by 1 18.11.2015 payable with interest at the rate of 8.5% per annurh and Rs.30,000/- on 14.11.2014 payable with interest at the rate of 9.5% th per annum vide Receipt Nos.1270 and 1106, respectively, in 7 nd respondent/Society. Further, it is also an undisputed fact that 2 petitioner made fixed deposit for an amount of Rs.50,000/- on 7 02.05.2019 vide Receipt No. 1738 in 7*^ respondent/Society payable with interest at the rate of 7.5% per annum. It is the contention of learned counsel for the petitioners that even after the date of maturity, the respondent Nos.7 and 8 did not pay the matured amount and as such, they got renewed the fixed deposit receipt No. 1270 till 19.11.2022, fixed deposit receipt No. 1106 till 14.11.2022 and fixed deposit receipt No.1738 till 31.12.2022. It is his contention that subsequently, after maturity of the fixed deposits, when the petitioners approached the respondent Nos.7 and 8 to settle the amounts, the respondent Nos.7 and 8 did not pay the amount and informed that they were not having funds, as the amounts were misappropriated by some of the staff working in the respondent No.7/Society. It is the contention of learned counsel for the respondent No.7/Society that the society records do not reflect the renewals and even if it is accepted, if, the renewal was not occurred in due course, the interest claimed by the petitioners at 8.5% per annum is exorbitant not permissible under the relevant 6. 7. Rules. Learned counsel for the petitioners would further contend that 7**^ respondent is a Co-operative Society constituted 8. 8 agreement between members thereof who had agreed to abide by the provisions of the Andhra Pradesh Co-operative Societies Act, 1964, and the Rules framed thereunder framed by the society, and therefore, 7*'" respondent has as well as public duty to pay the customers the maturity amount of the fixed deposit as per the terms of the deposit. He placed reliance on the proposition of law laid down in K.Valliammal v. The Deputy Registrar of Co-operative Society\ wherein it is observed thus (Paragraph No. 12): on or the Bye-laws statutory 12. Resultantly, the contentions of the learned counsel for the petitioner deserve to be accepted, that once it is not disputed that the officers of the bank responsible for its conduct of business accepted the deposit and issued F.D. receipt to the petitioner, the payment on maturity, cannot be denied, on the ground that the officers of Bank are guilty of misappropriation and criminal cases are pending against them. The respondent No. 2, has failed to perform its statutory as well as public duty. Consequently, the writ petition is allowed. A writ in the nature of certiorari is issued quashing the impugned order refusing to encash the fixed deposit of the petitioner with further direction to respondent No. 2 to pay the fixed deposit maturity amount along with the interest at the rate of 8. 5% p.a. from the date of deposit till payment, within 30 days of the receipt of certified copy of the order..." 2013 see Online Mad 578. I 9 Indisputably, material on record goes to show that a case in Crime No. 1108 of 2023 was registered against one S.Sankara Rao (CEO of Atkuru CAS) and K.Siva Kumari (Cashier) for misappropriating the funds of respondent No.7 and an inquiry conducted in this regard. The material on record further goes to show that the respondent Nos.1 to 6 had not taken any steps for payment of maturity amount on the fixed deposits made by the depositors. Admittedly, the depositors like petitioners deposit their hard earned money into the societies like 7*^ respondent/ society, only with a fond hope that they would pay higher rate of interest on the deposits made by them and they would be benefitted at the time of maturity of the deposit. If the depositors are not paid their maturity amount even after maturity period of completed, it would lead to mental agony. Therefore, the respondent Nos.7 and 8 failed to perform their public duty. As rightly observed by the High Court of Madras in the above decision, the payment on maturity cannot be denied on the ground that there was misappropriation and criminal case has been pending against the officials of the society. A perusal of Fixed Deposit receipt No.1270 goes to petitioner made fixed deposit of Rs.7,85,000/- in 7**^ respondent/ society on 18.11.2015 and the period of deposit is one 9. was 10. show that, 1 10 year and the rate of interest payable is 8.5% per annum, with maturity value of Rs.8.53,882/-. The particulars of renewals mentioned on the backside of the said fixed deposit disclose that the fixed deposit amount was renewed on 19.11.2016 for a period of six (06) years repayable with interest at the rate of 6% per annum and the date of maturity was mentioned as 19.11.2022. 11. Similarly, in respect of Fixed Deposit Receipt No. 1106, 1®' petitioner deposited an amount of Rs.30,000/- in 7*'’ respondent/ society on 14.11.2015 and the period of deposit is one year and the rate of interest payable is 9.5% per annum, with maturity value of Rs.32,953/-. On 14.11.2016, the said deposit was renewed for a period of six (06) years repayable with interest at the rate of 8.25% per annum and the date of maturity was mentioned as 14.11.2022 and the maturity value was mentioned as Rs.58,507/-. Petitioner No.2, mother of 1®‘ petitioner, also made fixed deposit for a sum of Rs.50,000/- in 7"^ respondent/society on 02.05.2019 and the period of deposit is one year after and the rate of interest payable is 7.5% per annum, with maturity value of Rs.54,122/-. On 02.05.2020, the said deposit was renewed for one year, repayable with interest at the rate of 7.5% per annum, again, on 02.05.2021, it was renewed for a period of one (01) year and 12. *b- 11 finally it was renewed in the month of May, 2022 for a period of 242 days, repayable with interest at the rate of 6% per annum. The date of maturity of the said deposit was on 31.12.2022 and the maturity r amount was Rs.64,972/-. When a fixed deposit matures, the principal amount. 13. along with the interest accrued, is supposed to be paid out to the depositor. In the case on hand, the petitioners did not opt for auto renewal. Instead, they requested the bank to repay the maturity amounts. A perusal of the material on record goes to show that the fixed depositreceipt bearing No.1270was lastly renewed by 1®* petitioner on 19.11.2016 for a period of six (06) years and the agreed rate of interest for that renewal is 6.5% per annum and the date of maturity is 19.11.2022. The other fixed deposit receipt bearing No. 1106 was lastly renewed by 1®‘ petitioner on 14.11.2016 for a period of six (06) years and the agreed rate of interest for that renewal is 8.25% per annum and the date of maturity is 14.11.2022. 2"'* petitioner’s fixed deposit receipt bearing No. 1738 was lastly renewed by 2^^ petitioner in the month of May, 2022 for a period of 242 days and the agreed rate of interest for that renewal is 6% per annum and the date of maturity is 31.12.2022. 14. 12 15. It is the case of the petitioners that on the respective dates of maturity, even though the petitioners demanded to repay the maturity amount covered under the respective fixed deposits, respondent/Society did not repay the amount on the ground that they were not having funds as the amounts were misappropriated by some of the staff working in the society. In view of the fact that there are laches on the part of 7*^ respondent/society in repaying the maturity amounts on the respective dates of maturity to the petitioners, they are entitled to subsequent interest as per the agreed rates of interest on the last renewals, from the date of maturity of its last renewal. It is the contention of the learned counsel for 7**^ 16. respondent that the records of society do not reflect the respective renewals of the fixed deposits. A perusal of the respective fixed deposits goes to show that they contain entries made by the staff of 7*^ respondent/Society reflecting the renewals made on the respective dates. The petitioners got renewed the fixed deposits from time to time and on the final date of maturity, as the respondent Nos.7 and 8 did not pay the maturity amount, they approached this Court. 13 17. Therefore, the petitioners are entitled to the maturity amounts of the last renewal, along with respective agreed rates of interest on the last renewal, on their respective fixed deposits. Accordingly, Respondent No.7 is directed - (i) to pay interest at the rate of 6.5% per annum on maturity value of the fixed deposit bearing No. 1270 from 19.11.2022 till date of payment to 1 petitioner: (ii) to pay interest at the rate of 8.25% per annum on maturity value of the fixed deposit bearing No.1106 from 14.11.2022 till date of payment to 1®‘ petitioner; and, (iii) to pay interest at the rate of 6% per annum on maturity value of the fixed deposit bearing No. 1738 from 31.12.2022 till date of payment to 2"'' petitioner. St 18. With the above direction, this Writ Petition is disposed of. There shall be no order as to costs. Consequently, miscellaneous applications pending if any, shall stand closed. Sd/- M. SRINIVAS ASSISTANT REGISTRAR //TRUE COPY// C^ri^^FRCER SE To, 1. The PrI. Secretary, Co-Operative Department, State of A.P., Secretariat Buildings, Velagapudi, Amaravati, Guntur District. 2. The Commissioner for Co-Operation and Registrar of Co-Operative Societies, D.No.2, Skylark Towers, 2-16-83, 11th Line, Syamala Nagar, Guntur, Guntur District. 3. The District Collector, Krishna District, At Machilipatnam. 4. The District Co-Operative Officer, Krishna District, Machilipatnam. 5. The Deputy Registrar of Cooperative Societies, Gudivada, Krishna District. 6. The C.E.O., Krishna District Co-Operative Central Jagannadhapuram, P.O.,Machilipatnam, Krishna District. Bank ltd, 7. The Secretary, Atkuru Primary Agricultural Co-Operative Credit Society Ltd, Atkuru, Atkuru Village, Unguturu Mandal, Krishna District. 8. The President, The Atkuru Primary Agricultural Co-Operative Credit Society Ltd., Atkuru, Atkuru Village, Unguturu Mandal Krishna District. 9. One CC to Sri Siva Rama Krishna KoJIuru, Advocate [OPUC] 10. One CC to Sri T. N. M. Ranga Rao, Advocate [OPUC] 11. Two CCs to GP for Cooperation, High Court of Andhra Pradesh [OUT] 12. Two CD Copies. ssb HIGH COURT DATED:01/08/2025 ORDER WP No. 3793 OF 2025 g( 0 7 AUG 2025 jn Co ^sCmrentSecta^*^ •v^Esausass^ DISPOSING OF THE W.P. WITHOUT COSTS