IMPORTANT POINT
The court established that the inclusion of necessary parties is essential for justice, and the arbitrator must utilize their powers to summon witnesses in cases involving allegations of fraud.

ORDER :

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

…It is prayed that this Hon’ble Court may be pleased to issue a Writ, Order or Direction more particularly one in the nature of Writ of MANDAMUS, declaring the action of the 3rd Respondent in passing order dated 5.2.2020, passed in I.A. No.1 of 2019 in Claim No.49 of 2018-19, on the file of Sub Registrar/Officer on Special Duty, District Co-operative Central Bank Limited, West Godavari, Eluru as illegal, arbitrary, unjust and without jurisdiction and in violation of the principles of natural justice and pass such other order.

2. The present Writ Petition is filed to set aside the order dated 05.02.2020 in I.A. No.1 of 2019 in Claim No.49 of 2018-19, on the file of the Deputy Registrar/Officer on Special Duty, District Cooperative Central Bank Limited, West Godavari District, Eluru, wherein whereby the 3rd respondent has dismissed the aforesaid I.A. filed to implead the proposed respondents therein as respondent Nos.8 to 12 to the claim suit enquiry.

3. At the outset, it is the case of the petitioners herein that the 4threspondent bank filed claim No.49/2018-2019 on the file of the 3rdrespondent under Section 61 and 62 of A.P. Cooperative Societies Act, for recovery of a sum of Rs.6,71,47,801/- against the respondents No.5 and 6 (who are original borrowers) and others including the petitioners who are the defendants (Nos.4 to 7) in the said claim suit as the writ petitioners herein have not stood as guarantors by mortgaging the title deeds, to the original borrowers infact they have stood as guarantors to respondents No.5 and 6 (who are original borrowers) in the loan obtained from the bank Attili Co-operative Branch and the said loan was cleared in the year 2016, despite repeated requests the documents which are before the Attili Co-operative Bank have not only returned and the same were transferred to Elamanchali Cooperative Bank and on the demand of the writ petitioners a complaint was lodged to the police by Attili Co-operative Bank Manager against the then Elamanchali Co-operative Bank Manager who arrayed as 14th respondent in the Writ Petition as these facts which are in the knowledge of the proposed implead respondents filed an I.A. 1 of 2019 in Claim No.49/2018-19, hence, on the aforesaid grounds prayed to implead the proposed parties viz.,

1) CEO of the District Cooperative Central Bank, Eluru, West Godavari District,

2) the Branch Manager, District Co-operative Central Bank, Attili Branch,

3) Sri S.P. Srinivasamutyam, erstwhile Branch Manager, District Cooperative Central Bank, Yelamanchili branch, now residing at Neggipudi, Marter, Penugonda Mandal, West Godavari District and

4) Sri S. Radha Krishna, Assistant General Manager (ST Loans),District Co-operative Central Bank Limited, R.R. Pet, Central Office, Eluru, West Godavari District,

to substantiate their contentions that they have not pledged their documents to the Yelamanchili Branch as guarantor/surety in favour of the 5th and 6th respondents who are original borrowers and the said application for implead was filed to implead the proposed implead respondents as party respondents to the Claim Application 49/2018-19 before the Arbitrator/4th respondent. It is the contention of the learned counsel for the petitioner initially the Arbitrator/4th respondent has observed the following:

“Heard both sides. Petition allowed to add parties 8 & 10, 11, 12 only to take evidence from the above parties. In case of 9th party the following is the main contention. The counsel for guarantors main contention is they have not issued guarantee to Sri Gudimetla Sundara RamiReddy &Co in the Yelamanchili DCCB Branch Ltd., Yelamanchili and documents issued to the Attili branch for another guarantee were not received by them. Hence, this aspect was provide there is no case in Yelamanchili DCCB Branch case. Hence, in the course of trial the court feels it is necessary to summon BM, AP, SCSC