In a detailed order that reflected both patience and a firm warning, the Andhra Pradesh High Court on Saturday set aside a recovery order issued against two brothers from Kadapa district. Justice K. Sreenivasa Reddy said the authorities “cannot rush into recovery without even giving the heirs a clear picture of the loan their father allegedly took,” leaving several people in the courtroom nodding in agreement.
Background
The case revolves around a loan of ₹4,76,700 reportedly taken in 2019 by the late Ramana Reddy from a Primary Agricultural Cooperative Society in Rayachoti. His sons - Hareesh Reddy and Ajay Reddy - told the court that they had no clue about this loan till the Society informed them in 2024. When they sought documents through RTI, the Society refused, claiming the RTI Act does not apply to cooperative societies.
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Complicating matters further, an internal arbitrator had already issued a Section 71 Certificate (like a decree) demanding repayment of ₹1,77,698 plus interest, even before their father passed away in 2021. But the sons said neither they nor their father ever received proper notice, and no loan documents were supplied to them.
Court’s Observations
The judge took a hard look at both sides. On one hand, the file clearly showed that notices had been issued to the father during his lifetime. On the other hand, the sons had genuinely been kept in the dark after his death - something the bench found unacceptable.
“The bench observed, ‘When legal heirs are being asked to clear the deceased’s dues, withholding loan documents makes no sense and offends basic fairness.’”
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Justice Reddy further said the liability of legal heirs extends only to the property they inherit. For that, the heirs must know exactly what the original transactions were. Denial of information, the Court said, violates natural justice.
Interestingly, the Court also addressed the RTI issue. It acknowledged that co-operative societies may not fall under the definition of “public authority” under RTI, as held by the Supreme Court - but clarified something important:
If heirs are being asked to pay their father’s debt, giving them loan documents is not an optional courtesy, but a legal necessity.
Decision
In the end, the High Court set aside the earlier recovery order issued on 14 June 2024. It directed the sons to file a fresh application within two weeks, and ordered the Society to supply all loan-related documents within two weeks thereafter. Once this is done, the Deputy Registrar must pass a fresh reasoned order under the Cooperative Societies Act within four weeks.
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The Court stopped short of cancelling the loan or the certificate itself - it only insisted that recovery can proceed only after transparency and due process.
Case Title: Badepalli Hareesh Reddy & Another vs Government of Andhra Pradesh & Others
Case No.: W.P. No. 14502 of 2024
Case Type: Writ Petition (Mandamus) under Article 226 of the Constitution of India
Decision Date: 22 November 2025
