IMPORTANT POINT
The court established that a prior judicial attachment order supersedes subsequent government actions regarding property attachment under the relevant acts.

ORDER :

(K. Manmadha Rao, J.) :

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 particularly one in the nature of writ of Mandamus directing the respondent Nos 1 and 2 to delete the properties mentioned at Sl Nos 8 and 32 of the Annexure to G O Ms No 70 I Lome Gencral B/A2 Department dated 3 4 2014 from attachment or in the alternative to recognize the petitioner as preferential secured creditors of the respondent No 3 declaring their action as illegal and ultra vircs to the provisions of Articles 14 and 300A of the Constitution of India besides directing not to proceed further and pass such other order or orders….”

2. The grievance of the petitioner is that the 3rd respondent styled himself as the absolute owner of Sri Manikanta Residency-III (SIMS Vihar) has executed three agreements of sale dated 28.7.2012 in favour of the petitioner. Having come to know that he was cheated by the management of 3rd respondent including its Managing Director Sri K.Surendra Babu , has issued a legal notice dated 22.2.2013 to the 3rd respondent and its Managing Director calling upon to discharge the liability under the respective agreements of sale styled Khararu Nama Oppudala Patram and return the amounts forthwith. In fact, immediately after execution of the respective agreements of sale and before issuance of the legal notice, when the petitioner questioned the Managing Director of the 3rd respondent, who in-turn, has issued three post dated cheques for a total sum of Rs.39 lakhs, on ICICI Bank, Visakhapatnam. It is further stated that the petitioner along with his father has filed a suit in OS No.88 of 2013 on the file learned VIII Additional District Judge, Visakhapatnam on 22.03.2013 for recovery of amount with subsequent interest thereon along with IA No.325 of 2013 seeking for attachment before judgment of the properties shown in the schedule attached to I.A. Accordingly, the learned trial Judge after considering the material on record, has directed attachment of properties. It is further stated that the 2nd respondent through his letter in C.No.2747/C-13/CID/2013, dated 31.8.2013 sent a proposal to the 1st respondent seeking ad-interim orders of attachment of certain properties held in the name of 3rd respondent in Crime NO.63 of 2013 under Sections 406, 420 and Section 5 of A.P Act 17/99 and Sections 4, 5 and 6 r/w Section 2© of the Prize Chits and Money Circulation Schemes (Banning) Act 1978 of IV Town Police Station, Visakhapatnam and Crime No.66 of 2013 under Sections 406, 420 IPC and Section 5 of A.P Act 17/99 and Sections 4, 5, 6 r/w 2© of Prize Chits and Money Circulation Schemes (Banning) Act 1978 of Gajuwaka Police Station were registered. The 1st respondent issued G.O.Ms.No.70 Home (General .B/A2) Department dated 3.4.2014 in exercise of the powers conferred under Section 3 of the Act passed an ad-interim direction of attachment, attaching the properties of the 3rd respondent and the Chief Managing Director Sri K. Surendra Babu @ Surendra Gupta, pending further action by the competent authority in accordance with the provisions of the said Act. Hence, the present writ petition.

3. Counter affidavit has been filed by the 2nd respondent. While denying al the allegations made in the petition, it is contended that the properties mentioned at Sl.No.32 of the Annexure G.O.Ms.No.70 Home (General.B/A2) Department, dated 3.4.2014 sold by the petitioner herein on 28.07.2012 to one Kodidasu Jaggaiah, S/o Sri Ramulu, R/o Tatichetlapalem, Visakhapatnam who was one of the accused in Cr.No.63/2012 and 66/2013 under Sections 406, 420 IPC and Sec A.P Protection of Depositors and Financial Establishment Act (APPDFE) 1999 and Sections 4, 5 and 6 r/w 2(c ) of Prize and Chit Money Circulation Scheme Banning Act 1978 on the file of IV Town Police Station and Gajuwaka Police Station, Visakhapatnam City. Subsequently, both the criminal cases are e