IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON’BLE SMT. JUSTICE T. MADHAVI DEVI WRIT PETITION No.9453 of 2025 Date: 18.12.2025 Between:

Perumallapalli Janaiah … Petitioner AND State of Telangana, Agriculture and Cooperative Department, rep. by it’s Prl Secretary, Secretariat, Hyderabad and two others.

…Respondents

ORDER

This Writ Petition is filed challenging the action of respondent No.2 in initiating execution proceedings for recovery of an amount of Rs.19,82,000/- without there being any recovery certificate under Section 71 of the Telangana Cooperative Societies Act, 1964 (“for short, “the Act”).

2. Heard learned counsel for the petitioner, learned Government Pleader for Cooperation, appearing for respondent No.1 and Sri Srinivas Polavarapu, learned Standing Counsel for District Cooperative Central Bank, Khammam, appearing for respondents No.2 & 3.

3. Learned counsel for the petitioner submitted that the petitioner has obtained a loan of Rs.23,94,000/- on 19.10.2020 from respondent No.2-bank for establishing a poultry farm and that after adjusting of the subsidy amount of Rs.13,30,000/-, the balance loan amount payable by the petitioner is Rs.10,64,000/-. It is submitted that the petitioner is required to repay the said loan amount in half-yearly instalments and that the petitioner has been paying the instalments regularly and the last instalment for repayment of the loan is due on 19.07.2026. It is further submitted that the petitioner defaulted in payment of two half-yearly instalments and therefore, respondent No.2-bank initiated proceedings under Section 71 of the Act only for recovery of a sum of Rs.1,31,500/-. It is submitted that the petitioner has not challenged the said proceedings and is willing to make the payment of Rs.1,31,500/- together with interest. However without initiating any proceedings for recovery of the balance amount, the respondents have issued sale/auction notice dated 28.02.2025.

Challenging the same, the present Writ Petition has been filed.

4. Respondent No.2-bank has filed counter affidavit.

5. Learned Standing Counsel for respondent No.2-bank confirms that the petitioner has obtained the loan and is entitled to the subsidy amount. It is submitted that the petitioner defaulted in repayment of instalments and therefore, the action has been initiated under Section 71 of the Act and that the recovery certificate issued thereunder was not challenged by the petitioner before the Tribunal under Section 76 of the Act. With regard to the balance amount, it is submitted that the Bank would take appropriate action in accordance with law.

6. In view of the above submissions of both the parties, this Court finds that the petitioner has paid a sum of Rs.1,31,500/- pursuant to the notice issued under Section 71 of the Act and no recovery certificate under Section 71 of the Act has been obtained for recovery of the balance loan amount. In the absence of such a recovery certificate, the respondents could not have issued the impugned sale notice and auction notice for recovery of the balance amount. The recovery certificate dated 09.01.2025 under Section 71 of the Act for recovery of Rs.1,31,500/- cannot be made the basis for recovery of the balance amounts. In view thereof, the sale/auction notice dated 28.02.2025 is hereby set aside. However, respondent No.2-bank is granted liberty to initiate appropriate proceedings for recovery of the balance amount in accordance with law.

7. With the above directions, this Writ Petition is disposed of.

There shall be no order as to costs.

8. Miscellaneous applications, if any, pending in this Writ Petition, shall stand closed.

____________________________

JUSTICE T. MADHAVI DEVI Date: 18.12.2025 PRN THE HON’BLE SMT. JUSTICE T. MADHAVI DEVI WRIT PETITION No.9453 of 2025 Date: 18.12.2025 PRN