APHC010135482026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3207] MONDAY, THE SEVENTEENTH DAY OF MARCH TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE BATTU DEVANAND WRIT PETITION NO: 7384/2026 Between: 1. OMKARA VIJAYALAKSHMI STRIPS PVT LTD, REPRESENTED BY ITS MANAGING DIRECTOR, MR. KOTA BHANU PRASAD, A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, HAVING ITS REGISTERED OFFICE AT D.NO. 76- 18-45, PLOT NO. 45, IRON YARD, BHAVANIPURAM, VIJAYAWADA, KRISHNA DISTRICT, ANDHRA PRADESH - 520012. ...PETITIONER AND 1. THE CHAIRMAN UNION BANK OF INDIA, HEAD OFFICE, 239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI -400021. 2. THE BRANCH MANAGER, UNION BANK OF INDIA, SURYARAOPET BRANCH, DORNAKAL RD, SURYARAOPETA, VIJAYAWADA, ANDHRA PRADESH - 520 002. 3. THE DEPUTY ZONAL HEAD/NODAL OFFICER, ZONAL OFFICE, R.R. APPA RAO STREET, VIJAYAWADA, KRISHNA DISTRICT, ANDHRA PRADESH - 520 001. 4. THE ASSITANT GENERAL MANAGER MLP/MLP HEAD, UNION BANK OF INDIA, MLP, VIJAYAWADA, ANDHRA BANK BUILDING, 3RD FLOOR, RAJA RANGARAYAPPARAO STREET, VIJAYAWADA, ANDHRA PRADESH - 520 001. ...RESPONDENT(S): 2 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 topleased to issue an appropriate Writ, Order or Direction, more particularly one in the nature of Writ of Mandamus, declaring the action of the Respondent Bank in issuing the Show Cause Notice dated 10.02.2026 proposing to classify the PetitionerCompany and its directors as fraud as arbitrary, illegal, without jurisdiction and violative of the principles of natural justice and Articles 14 and 19(1)(g) of the Constitution of India, particularly when the very foundation of the said action, namely the classification of the Petitioner's account as Non-Performing Asset dated 23.06.2025, is already under judicial scrutiny before this Hon'ble Court in W.P. No. 23842 of 2025 and W.P. No. 34363 of 2025 and has resulted in interim protection being granted against the Respondent Bank's recovery measures and consequently declare that the initiation of fraud classification proceedings during the pendency of the said writ petitions constitutes a premature, arbitrary and colourable exercise of power intended to circumvent the protection granted by this Hon'ble Court, particularly when the Respondent Bank seeks to rely upon the Stock and Receivable Audit Report dated 01.07.2025 and the Credit Investigation Report dated 17.09.2025, which were prepared subsequent to the disruption of the Petitioner Companys business operations and after the impugned NPA classification, and therefore cannot retrospectively establish any fraudulent intent or diversion of funds and consequently restrain the Respondent Bank from taking any further steps pursuant to the impugned Show Cause Notice dated 10.02.2026 or from declaring the Petitioner Company or its directors as fraud, pending disposal of the present Writ Petition, and pass IA NO: 1 OF 2026 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 Pleased to stay all further proceedings pursuant to the impugned Show Cause Notice dated 10.02.2026 issued by the Respondent Bank proposing to classify the Petitioner Company and its directors as “fraud”, and restrain the Respondent Bank and its officials from in any manner proceeding further pursuant to the said notice, including by initiating or continuing any action for declaring the Petitioner Company or its directors as fraud or reporting the same to any regulatory or statutory authority, and pass IA NO: 2 OF 2026 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 3 Pleased to direct the Respondents to refrain from taking any coercive steps against the Petitioner Company or its directors, or taking any consequential measures that may adversely affect the Petitioner’s business operations or credit standing, and pass Counsel for the Petitioner: 1. VADLAPATLA SAI MALLIK Counsel for the Respondent(S): 1. The Court made the following: 4 THE HON’BLE SRI JUSTICE BATTU DEVANAND WRIT PETITION NO.7384 of 2026 ORDER: Heard Mr. Vadlapatla Sai Mallik, learned counsel for the petitioner and Smt. V.Dyumani, learned Standing Counsel for the respondent-bank and perused the material available on record. 2. This Writ Petition is filed against the Show Cause Notice dated 10.02.2026 issued by respondent No.3, wherein explanation of the petitioner is called upon with regard to the operations and affairs of the petitioner should not be classified and reported as “fraud”. Along with the Show Cause Notice, respondent No.3 has enclosed certain documents to declare the account/transactions/incidents as “fraud”. 3. In the said Show Cause Notice, it is made clear that on or before 21 days from the date of receipt of the Show Cause Notice, the petitioner has to submit reply along with the documentary evidences. In the Show Cause Notice, it is also made clear that, if the petitioner desires to avail personal hearing in support of his case, it will be considered, if specific request is made in his reply. 4. On perusal of the Show Cause Notice under challenge in this writ petition, respondent No.3 has accorded sufficient time to submit explanation and to give an opportunity for personal hearing also, if required. 5 5. During the course of hearing, learned counsel for the petitioner would submit that in compliance to the Show Cause Notice, petitioner has submitted explanation on 11.03.2026. 6. In view of the same, as already the petitioner submitted an explanation to the Show Cause Notice, dated 10.02.2026, which is under challenge in this writ petition, we see that there is no ground to entertain this writ petition. As the petitioner has already raised all his contentions in his reply submitted to the respondent No.3 to his Show Cause Notice, respondent No.3 will pass appropriate orders by following due process of law. 7. It is settled law that no writ petition is maintainable against a Show Cause Notice, unless there is any violation of principles of natural justice or it is issued without jurisdiction or any malice in issuing the same. 8. Admittedly, in the present case, Show Cause Notice was issued by following due process of law and sufficient reasonable opportunity also provided to the writ petitioner. 9. In view of the same, in our considered view, this writ petition is not maintainable. 10. Accordingly, the Writ Petition is dismissed. 11. There shall be no order as to costs. Miscellaneous petitions, if any pending, in this case, shall stand closed. __________________________ JUSTICE BATTU DEVANAND Date:17.03.2026 SA 6 233 THE HON’BLE SRI JUSTICE BATTU DEVANAND WRIT PETITION NO.7384 of 2026 Dt.17.03.2026 SA