U. Chandra Sekhara Rao vs A.P. State Corporation Housing Federation Ltd.

L. Narasimha Reddy, J.—The petitioner borrowed an amount of Rs. 45,000/- towards housing loan in the year 1985 from Viswanadha Co-operative Building Society Limited, the 2nd respondent. The amount, in turn, was made available by the A.P. State Co-operative Housing Societies Federation Limited, the 1st respondent. Certain documents relating to the property owned by the petitioner were deposited as security with the 1st respondent. The petitioner states that the last instalment was paid by him on 25-3-2000, and despite the same, the documents are not released.

The 2nd respondent filed a counter affidavit stating that the petitioner has not cleared the loan amount and still a sum of Rs. 54,000/- is due. On the same lines, the 1st respondent also filed a counter affidavit.

Heard the learned Counsel for the petitioner and the learned Counsel for the respondents.

There is a serious dispute as to whether the petitioner has cleared the loan. Had it been a case where the amount was paid by the petitioner to the 2nd respondent and there was any default on the part of the 2nd respondent in passing on the amount to the 1st respondent, this Court would have directed for refund of the documents, leaving it open to both the Societies to resolve their disputes. The 2nd respondent flatly denied the averment of the petitioner that the loan amount was cleared. Though, in his report, dated 27-10-2006, the District Co-operative Society Officer, Guntur, mentioned that the petitioner had cleared the amount, definite findings need to be recorded in this regard, after giving an opportunity to both parties before an appropriate forum.

Hence, the writ petition is disposed of leaving it open to the petitioner to workout his remedies u/s 71 of the A.P. Co-operative Societies Act. In case the claim is presented within four weeks from today, it shall be entertained without raising any objection as to limitation. There shall be no order as to costs.