IMPORTANT POINT
The main legal point established in the judgment is the interpretation of the jurisdiction of co-operative banks under the APCS Act 1964 and the applicability of the RDB Act 1993.

ORDER :

This Writ Petition is filed under Article 226 of the Constitution of India for the following relief:-

"To issue an appropriate Writ, Order or direction more particularly one in the nature of Writ of Mandamus to declare that the Certificate issued by the respondents 2 & 3 under Section 71(1) of the APCS Act 1964 in case No.702/23-24 dated 22.08.2023 for an amount of Rs.27,25,923/-, as illegal, arbitrary and beyond the power and without authority, jurisdiction, contrary to principles of Natural Justice, violative of Fundamental Rights guaranteed under Article 14 of the Constitution of India and contrary to provisions and procedure contemplated under Andhra Pradesh Cooperative Societies Act, 1964 and rules framed thereunder and set aside the same and pass such other orders."

2. The unnecessary details are shorn off:

At the outset, it is the case of the petitioner that he has availed a long term housing loan of Rs.25,00,000/- from the 4th respondent-The Krishna District Co-operative Central Bank Limited (hereinafter called, ‘the bank’) on 19.02.2019 by mortgaging the ground floor of his house, which is repayable in 20 years and due date is 19.02.2039 in 240 monthly equal instalments with interest @ 9.5% and the monthly EMI is Rs.23,304/- and the petitioner herein has repaid amount of Rs.11,63,498/- and subsequently an amount of Rs.70,000/- was appropriated on 13.02.2024 towards loan account. As the petitioner has committed default in paying EMIs, the bank has obtained a decree against the petitioner for an amount of Rs.27,25,923/- from the 3rd respondent and the 3rd respondent issued a certificate for the said amount with further interest @11.5% under Section 71(1) of the Andhra Pradesh Co-operative Societies Act, 1964 (hereinafter called, ‘the APCS Act’).

3. The certificate which was issued under Section 71 of the APCS Act was assailed in the present Writ Petition on the sole ground that the 2nd and 3rd respondents have no jurisdiction to entertain the proceedings under Section 71(1) of the APCS Act, as the respondents-society is carrying on banking business and they fall under the definition of Section 5(cd) of the 1949 Act and the banks and banking companies fall within the meaning of Section 2(d) and (e) of the 1993 Act and when the debt more than Rs.10,00,000/-, the respondents have to invoke the jurisdiction of the Debts Recovery Tribunal constituted under the 1993 Act, which have exclusive jurisdiction to entertain and adjudicate upon recovery claims of Co-operative Banks and therefore the power of the Registrar of Co-operative Societies to deal with such claims is only comprehensively excluded and hence prayed to allow the Writ Petition.

4. And he relied on the judgment of the composite High Court at Hyderabad in M.Babu Rao v. Deputy Registrar of Co-operative Societies/Officer on Special Duty, Vasavi Co-op. Urban Bank Ltd., Malakpet, Hyderabad, 2005(4) ALD 582 : 2005(4) ALT 327 and the judgment of the Hon’ble Supreme Court in Pandurang Ganpati Chaugule v. Vishwasrao Patil Murgud Sahakari Bank Limited, (2020) 9 SCC 215 Constitutional Bench and also relied on the common judgment of the High Court for the State of Telangana in W.A.No.1680 of 2017 and batch dated 31.12.2021, to substantiate his contentions referred supra.

5. Heard Sri Neeleash Ganta, learned counsel representing Sri Ganta Prasad, learned counsel for the petitioner and Sri P.Veera Reddy, learned Senior Counsel appearing for Sri S.Dilip Jaya Ram, learned Standing Counsel for the respondents 3 to 5-bank.

6. Respondent Nos.2 to 5 filed counter and denied all the averments made in the writ affidavit filed in support of the Writ Petition and inter alia contended by the learned designated Senior Counsel Sri P.Veera Reddy that both the SARFAESI Act and DRT Act provided for recovery of dues to the banks including Co-operative Societies, which is essential part of banking activity and the Act in no way trenches on the field reserved under Entry 32 of List II and is a pi