The Telangana High Court had set aside the State government’s GO 8 of Animal Husbandry department transferring rights over Milk Products Factory at Lalapet in Hyderabad belonging to erstwhile A.P. Dairy Development Co-operative Federation (APDDCF) Limited to Telangana State Dairy Development Co-operative Federation (TSDDCF)

A division bench of Justices M.S. Ramachandra Rao and T. Vinod Kumar pronounced verdict to this effect in a writ petition filed by APDDCF in 2016 challenging the GO issued by Telangana government. The action of Telangana in issuing the GO was illegal, arbitrary and contrary to the A.P. Reorganisation Act-2014, the judgment said. Another GO, No. 17, issued by Telangana was declared to be only an interim arrangement. The APDDCF was not bound by that GO, the verdict said.

The bench said the Union Home Ministry had no jurisdiction in apportionment of assets and liabilities of Schedule IX institutions except in ‘adjudicating’ any disputes between APDDCF and TSDDCF. The order said the APDDCF had the option of remedy of invoking Article 226 of the Constitution seeking apportionment of assets and liabilities of APDDCF. The Telangana HC had jurisdiction to decide such plea, the judgment said.

The administrative office of the APDDCF and its assets and liabilities should be divided between APDDCF and TSDDCF in the ratio of 58.32 : 41.68. While first and second floors of the building go to TSDDCF, the third and fourth floors go to APDDCF. The ground floor should be used by both of them, the order said.

The market value of the guest house at Somajiguda should be determined by the Comptroller and Auditor-General and it should be apportioned between APDDCF and TSDDCF in the ratio of 58.32 : 41.68. Both federations were given liberty to approach the CAGI to assess market value of the property.

The CAGI should, within eight weeks of receiving such request from either party, complete the valuation and pass on details to the two federations. Within three months of receiving information from CAGI, the TSDDCF should transfer 58.32% of the share to APDDCF.

The bench said the milk products factory at Lalapet in Hyderabad could not be said to be ‘common facility’. It rejected the AP Advocate General’s contention that Lalapet factory was part of ‘headquarters’.

The Hindu : March 11,2021 by Marri Ramu

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