High Court dismisses Andhra government’s writ appeal for takeover of Sangam dairy

The appeal was filed against Justice D.V.S.S. Somayajulu’s order dated May 7, 2021.

A division Bench of the High Court comprising Chief Justice Arup Kumar Goswami and Justice N. Jayasurya on Wednesday dismissed a writ appeal filed against Justice D.V.S.S. Somayajulu’s order dated May 7, 2021 wherein he suspended G.O.Ms.No.19 through which the operations and assets of Sangam Dairy were proposed to be taken over by the government. In his order, Justice Somayajulu had ruled that Sangam Dairy could continue to carry out the regular day-to-day activities, make payment of salaries and statutory dues and fulfil contractual obligations, but not create any further charge, encumbrance etc., on its properties. He also directed that all future transactions by which movable and immovable assets of the company were sought to be alienated, mortgaged, transferred etc., should be done with the prior permission of the court.