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2024 Supreme(Telangana) 456
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
ALOK ARADHE, C.J., SREENIVAS RAO, J
Ch.Sudhakar Raju – Appellant
Versus
Tirumala Coop Urban Bank Ltd, Br.Manager, Hyd - Respondent
Writ Appeal No.1044 of 2014
Decided on : 11-09-2024
Advocate Appeared:
For the Appellant : VEDULA CHITRALEKHA
For the Respondent: GP FOR COOPERATION TG
IMPORTANT POINT
IMPORTANT POINT
The court upheld the Tribunal's decision, affirming that the appellant failed to prove repayment of the loan, and judicial review under Article 226 does not allow re-evaluation of factual findings.
Headnote:
(A) Andhra Pradesh Cooperative Societies Act, 1964 – Section 62 – Intra-court appeal against dismissal of writ petition challenging arbitration award – Appellant claimed to have discharged loan but failed to provide evidence – Tribunal found no merit in appellant's claims, dismissing appeal – Judicial review under Article 226 is limited, and findings of fact cannot be re-evaluated. (Paras 4.2, 6, 10, 12)
(B) Arbitration – Ex parte award – Appellant contended lack of opportunity in arbitration proceedings – Tribunal held that appellant did not participate or provide evidence, thus upholding award. (Paras 4.1, 8)
Facts of the case: The appellant borrowed Rs.8,00,000/- from the respondent bank and defaulted on repayment, leading to arbitration proceedings and subsequent appeals.
Findings of Court: The court upheld the Tribunal's findings that the appellant failed to prove repayment of the loan and dismissed the appeal.
Issues: Whether the appellant discharged the loan and the validity of the ex parte award.
Ratio Decidendi: The court ruled that the appellant did not provide sufficient evidence to support his claims, and the Tribunal's findings were based on the evidence presented.
Result: Writ appeal dismissed.
JUDGMENT:
(Per the Hon’ble Sri Justice J. Sreenivas Rao)
This intra-court appeal is filed by the appellant aggrieved by the order dated 11.07.2014 passed by the learned Single Judge dismissing W.P.No.18684 of 2009 and confirming the order dated 03.08.2009 passed by the Andhra Pradesh Co-operative Tribunal, Hyderabad, in C.T.A.No.238 of 2003.
2. Heard Sri Vedula Srinivas, learned senior counsel representing Smt.V.Chitralekha, learned counsel for the appellant, Sri B.S.Prasad, learned senior counsel representing Sri K.B.Ramanna Dora, learned counsel for respondent No.1-Bank, and Smt.B.Mohana Reddy, learned Government Pleader for Cooperation Department appearing for respondent Nos. 2 and 3.
3. Brief facts of the case:
3.1. Respondent No.1 is Tirumala Co-operative Urban Bank Limited conducting business of banking and grant loans to its members. The appellant approached respondent No.1 for a loan of Rs.10,00,000/- and opened a savings account No.424 on 23.01.1999. Respondent No.1 after scrutiny of the value of the collateral security sanctioned loan to an amount of Rs.8,00,000/- as Secured Overdraft, vide SEOD A/c.No.32, on 17.02.1999 and the rate of interest agreed was 5% over the bank's prime lending rate with a minimum of 20% per annum with quarterly rests and the EMI was fixed at Rs.87,710/-. The appellant executed a demand promissory note on 17.02.1999 for an amount of Rs.8,00,000/- agreeing to pay the interest with quarterly rests from the date of executing the demand promissory note. After obtaining approval of the governing body and all the directors, respondent No.1 disbursed the loan amount on 18.02.1999 by deducting Rs.10,065/- towards share capital, out of sanctioned loan of Rs.8,00,000/-, and paid Rs.7,89,395/-. The appellant deposited the title deeds relating to his property vide letter dated 25.02.1999. Respondent No.1 has got a sister concern by name Tirumala Chit Funds Private Limited, which runs chit fund business, and the appellant herein was a subscriber to three chits for a total sum of Rs.11,00,000/-. The appellant became defaulter and not paid arrears, despite respondent No.1 issued notices on 23.07.1999, 13.03.2001 and final notice on 25.04.2001 requesting him to remit the entire loan amount together with further penal interest accrued thereon.
3.2. Respondent No.1 filed A.R.C.No.322 of 2001-J1 before respondent No.2-Arbitrator for recovery of an amount of Rs.7,38,079/- with interest from 01.07.2001. The appellant entered his appearance through counsel, but no counter or documents have been filed and ultimately remained ex parte. Respondent No.2 passed an Award on 19.11.2002 in favour of respondent No.1. Aggrieved by the same, the appellant filed C.T.A.No.262 of 2002 before respondent No.3-A.P. Cooperative Tribunal at Hyderabad. Respondent No.3 allowed the appeal on 19.07.2002 by setting aside the Award dated 19.11.2002 and remitted back to respondent No.2 for fresh consideration on merits. Respondent No.2 once again passed Award on 21.04.2003 in A.R.C.No.25 of 2003. Aggrieved by the same, the appellant filed C.T.A.No.238 of 2003 before respondent No.3 and the same was allowed on 12.06.2006.
3.3. Questioning the same, respondent No.1 filed W.P.No.14428 of 2006 before the erstwhile High Court of Andhra Pradesh, Hyderabad, and the same was allowed on 08.12.2006 and the matter was remitted back to respondent No.3 for consideration afresh. Pursuant to the above said order, respondent No.3 after considering the oral and documentary evidence on record dismissed C.T.A.No.238 of 2003, by its judgment dated 03.08.2009. Questioning the said judgment, the appellant filed W.P.No.18684 of 2009 before erstwhile combined High Court for the State of Telangana and Andhra Pradesh, Hyderabad, and the learned Single Judge dismissed the same, by its order dated 11.07.2014. Aggrieved by the same, the appellant filed this intra-court appeal.
Submissions of learned senior counsel for the appellant:
4. Learned senior counsel submitted that t
