IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
TARLADA RAJASEKHARA RAO, J.
Chatrathi Kusa Kumar – Appellant
Versus
The State of A.P. - Respondents
Writ Petition No. 8831 of 2023
Decided on : 09-08-2024
Mandamus - Writ Petition - AP Cooperative Societies Act, 1964 - Sections 71(1), 76 - The court emphasized the necessity of adhering to principles of natural justice, particularly the requirement of notice before adverse actions, leading to the conclusion that the auction notice was invalid.
Fact of the Case:
The petitioners challenged the issuance of a Form-9 Notice for auctioning their land, claiming no prior notice or opportunity to defend was provided, violating the Andhra Pradesh Cooperative Societies Act, 1964.
Finding of the Court:
The court found that the respondents failed to provide adequate notice and opportunity to the petitioners, violating principles of natural justice, and thus the auction notice was deemed invalid.
Issues: Whether the respondents provided proper notice and adhered to the mandatory procedures under the Andhra Pradesh Cooperative Societies Act, 1964 before initiating auction proceedings.
Ratio Decidendi: The court held that adherence to principles of natural justice, particularly the right to be heard and proper notice, is essential before any adverse action is taken against an individual.
Result: The writ petitions are allowed, and the auction notice is kept in abeyance.
ORDER :
The Writ Petition No.8831 of 2023 is filed under Article 226 of Constitution of India for the following relief/s:
The Writ Petition No.8832 of 2023 is filed under Article 226 of Constitution of India for the following relief/s:
2. It is the anguish of the petitioners that the orders delivered by the respondents, based on the provisions of the Andhra Pradesh Cooperative Societies Act, 1964 (hereinafter called the Act), are without any notice as contemplated under the Act.
3. Learned counsel for the petitioners submit that the petitioners did not receive any notice prior to 2017 demanding to pay the due amount under Section 71(1) of the Act and no summon is issued to appear before the Deputy Registrar, to conduct any enquiry and no opportunity of hearing is provided to the petitioners to defend. The respondent authorities issued recovery certificate violating the principles of natural justice and basing on the said recovery certificate, the respondent authorities might have initiated auction proceedings against the petitioners and as per the notice issued under Sec.71 (1) of the Act, the outstanding amount prior to 2019 does not exceed Rs.3 to 4 lakhs and the petitioners unable to understand how the respondent authorities calculated the due amount and ascertained that the due amount is Rs.64,69,432/-.
4. Learned counsel for the respondents filed counter affidavit and stated that the contention of the petitioners is not true and further stated that the 5th respondent conducted trial under provisions of the Act, by giving adequate opportunities to the petitioners and issued 71 Certificate in Rc.No.3560/16-17 dated 31.03.2017, and after lapse of more than 6 years, the petitioners are stating that they have not received any notices etc., if the petitioners have any disputes in this regard, they have to file appeal under Section 76 of APCS Act 1964, before Andhra Pradesh Cooperative Tribunal at Vijayawada, without availing said remedy, the petitioners approached this Court, countered that the Writ Petitions are not maintainable, when there is a remedy available under provisions of the Andhra Pradesh Cooperative Societies Act, 1964.
5. Insofar as the issuance of show cause notice is concerned, the learned counsel appearing for the respondent would contend that the respondent issued show cause notice to the petitioners which were duly acknowledged by the petitioners. Despite receipt of show cause notice, the petitioners did not turn up and therefore, it is not open to the writ petitioner to contend that no show cause
The court established that failure to provide notice and opportunity to be heard renders administrative actions invalid under the principles of natural justice.
The court reaffirmed that the right to notice and opportunity to be heard is fundamental to natural justice and must be observed in administrative actions.
The court affirmed that prior judicial decisions are binding and that internal payment arrangements do not negate loan obligations under cooperative society regulations.
Payments made to a third party do not constitute valid discharge of debt obligations to the primary creditor under cooperative society regulations.
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