K.Dhanalakshmi vs Government Of Tamil Nadu on 6 April, 2010

       

  

  

 
 
 IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 6-4-2010
CORAM
THE HONOURABLE MR.JUSTICE M.CHOCKALINGAM
AND
THE HONOURABLE MR.JUSTICE R.SUBBIAH
REVIEW APPLICATION Nos.133 and 134 of 2009
K.Dhanalakshmi						.. Petitioner in
								   both applications

vs

1.Government of Tamil Nadu
  Department of Industries and Commerce
  Rep. By its Commissioner and
	Director
  Chennai 5.
2.The Official Liquidator
  as the Liquidator of
  M/s.Pulsar Electronics Limited
  (in liquidation)					.. Respondents in
								   both applications
	Review applications filed under Order 47 Rule 1 and 2 of High Court Appellate Side Rules read with Sec.114 of C.P.C. Seeking to review the common final order dated 19.8.2009 passed by this Court in OSA Nos.175 and 176 of 2009.
		For Petitioner		:  Mr.R.Krishnamoorthy
						   Senior Counsel
						   for Mr.J.Nithyanandan

		For Respondents	:  Mr.P.S.Raman
						   Advocate General
						   Assisted by
						   Mrs.Bhavani Subbarayan
							for R1

						   Mr.N.S.Ponnunambi
						   Official Liquidator
						   Mrs.K.Latha Parimala 
							Vardana
						   Assistant Official
							Liquidator
COMMON ORDER
(Order of the Court was made by M.CHOCKALINGAM, J.)
	Pending the review applications whereby the second respondent in OSA Nos.175 and 176 of 2009 has sought for the review of the order made by the Court in the said original side appeals setting aside the sale made by the Official Liquidator, the Counsel for the appellant/State filed a letter which was received from the Department of Industries and Commerce and also the Official Liquidator filed a report.  Both the documents speak of further developments.  In view of the same, the following order is passed.
	2.Pursuant to the appointment of the Official Liquidator as the Liquidator of the company in liquidation, the property in question was brought for sale in C.A.No.662/2007.  The auction sale was confirmed for Rs.3.40 Crores by an order dated 24.10.2008 in favour of the review petitioner one Smt.K.Dhanalakshmi and it also directed the Official Liquidator to hand over possession and the documents pertaining to the property and execute the necessary conveyance deeds jointly with the Department of Industries and Commerce, Government of Tamil Nadu, in favour of the said purchaser or her nominee.  Not satisfied with that order, the Department of Industries and Commerce made  appeals in OSA Nos.175 and 176 of 2007.  On enquiry of the appeals, this Court set aside the sale.  After that order was made, the present review applications were filed by the auction purchaser seeking review of the judgment of the Court in the said appeals.  
	3.While the matter stood thus, a communication was received by the Counsel for the appellant from the Department of Industries and Commerce, and following the same, the Official Liquidator has also filed a report.  As could be seen from the report, claims were made before the Official Liquidator which were shown in paragraph 6 namely SIPCOT - Rs.1,41,34,785/- during 2003; TIIC - Rs.1,31,41,390.80 during 2009, Bank of Baroda - Rs.2,54,07,142.75 during June 2007 and CTO - Rs.71,773/-.  Further, it is also brought to the notice of the Court that an order came to be passed by the Company Court in C.A.No.669/2009 on 24.6.2009.  In compliance of the same, a meeting was convened on 30.6.2009, and a scheme of settlement was recorded wherein it is stated as follows: 
1.Department of Industries and Commerce - Rs.220 lakhs; 
2.SIPCOT - Rs.55 lakhs and 
3.TIIC - Rs.55 lakhs.  
	4.At the time when the review applications were taken up for consideration, it was submitted by the auction purchaser that she was ready and willing to make further payment provided the Government was willing to execute the sale deed jointly with the Official Liquidator.  After the proposal was made, the learned Counsel for the appellant took time and filed the said letter this day.  The said document would indicate that the Government of Tamil Nadu would get Rs.2.70 crores towards sale proceeds of the land with an extent of 5.8 acres at the Electrical Industrial Estate, Kakkalur, which was allotted to M/s.Pulsar Electronics Pvt. Ltd., Chennai, the company under liquidation.  From the perusal of the same, it would be quite clear that apart from Rs.2.20 crores, they are ready to receive Rs.50 lakhs towards the sale consideration and ready and willing to execute the sale deed jointly.  Now the report of the Official Liquidator would indicate that the property was originally sold for a price of Rs.3.51 crores and the same was with him out of which he has to be directed to make payment of Rs.55 lakhs to SIPCOT and Rs.55 lakhs to TIIC apart from making a payment of Rs.220 lakhs to the Department of Industries and Commerce, thus all totalling to Rs.330 lakhs.  The balance in the hands of the Official Liquidator would be Rs.21 lakhs.  According to the Official Liquidator, out of this, a sum of Rs.71,773/- was to be paid towards commercial taxes and making this payment, the balance will be in the hands of the Official Liquidator.  In respect of the amount which was payable to Bank of Baroda, as mentioned above, no claim is made, according to the Official Liquidator.  Under the circumstances, it would be fit and proper to issue a direction to the Official Liquidator to make deposit of the entire balance of Rs.20 lakhs and odd in the Indian Bank, High Court Branch, in the said company application. Accordingly, a direction is issued. If it is needed, he can get permission of the Court for further payment. Further, he is also directed to make payment of Rs.2.20 crores to the Department of Industries and Commerce, and out of the balance, Rs.55 lakhs to SIPCOT and Rs.55 lakhs to TIIC.  
	5.As far as the review petitioner auction purchaser is concerned, her offer of Rs.50 lakhs as additional consideration is accepted by the Department as could be evidenced by the letter filed by the appellant.  Under such circumstances, it becomes necessary to issue a direction to the review petitioner auction purchaser to make deposit of Rs.50 lakhs within a period of two weeks herefrom i.e., on or before 20.4.2010. Accordingly, a direction is issued. On such deposit being made, the Official Liquidator and the Department of Industries and Commerce could join together and execute a sale deed in respect of the property in question in favour of the auction purchaser or her nominee or nominees within a period of one month therefrom.  Accordingly, both the review applications are disposed of.  No costs.

							(M.C.,J.)	  (R.P.S.,J.)
								 6-4-2010
Index: yes
Internet: yes
nsv
To:
1.Government of Tamil Nadu
  Department of Industries and Commerce
  Rep. By its Commissioner and
	Director
  Chennai 5.
2.The Official Liquidator
  as the Liquidator of
  M/s.Pulsar Electronics Limited
  (in liquidation)	

							M.CHOCKALINGAM, J.

AND
R.SUBBIAH, J.

nsv

REV.APPLN.133 and 134
of 2009

Dt: 6-4-2010