HON’BLE SRI JUSTICE A. RAMALINGESWARA RAO WRIT PETITION No.21771 of 2007 Date: June 17, 2014 Between:
Mandava Sreemannarayana Rao, … Petitioner And Andhra Pradesh Industrial Development Corporation Limited, rep. by its General Manager (Equity Portfolio Management), Chairman and Managing Director, Hyderabad. … Respondent * * * HON’BLE SRI JUSTICE A. RAMALINGESWARA RAO WRIT PETITION No.21771 of 2007 O R D E R:
This writ petition was filed by one of the guarantors for M/s.Torus India Ltd. Along with this writ petition, another guarantor of the same company filed W.P.No.22822 of 2007 and following the decision of the Apex Court in Karnataka State Financial Corporation V. N.
[1]
Narasimhaiah the same was disposed of holding that the principles laid down in the above decision squarely apply to the facts of the case, as the respondent seeks to proceed against the properties of the petitioner which were offered only as collateral security.
2. In view of the decision of the Apex Court, the properties held as collateral security cannot be proceeded against in exercise of the powers under Section 29 of the Act. Accordingly the impugned notice therein was held to be unsustainable and was set aside, but keeping it open to the respondent Corporation to avail all other remedies available under law for recovery of the amounts allegedly due from the petitioner.
3. Following the judgment of the Apex Court and the order of this Court in W.P.No.22822 of 2007 dated 23.02.2012, this writ petition is also disposed of in terms of the above order. Pending miscellaneous petitions, if any, shall stand dismissed in consequence. No costs.
A. RAMALINGESWARA RAO, J Date: June 17, 2014 BSB
4 HON’BLE SRI JUSTICE A. RAMALINGESWARA RAO
WRIT PETITION No.21771 of 2007 Date: June 17, 2014 BSB
[1] (2008) SCC 176