BEFORE THE MADURAI BENCH OF THE MADRAS HIGH COURT DATED: 14/03/2006 CORAM: THE HONOURABLE MR.JUSTICE P.JYOTHIMANI W.P.No.3082 of 2006 and W.P.M.P.Nos.3174 of 2005 and W.V.M.P.No.3 of 2006 1. G.Kathirvel 2. G.Amudha .. Petitioners Vs. Tamil Nadu Industrial Investment Corporation Limited, represented by its Branch Manager, Mena complex 1st Floor, West Main Street, Pudukkottai - 622 001. .. Respondent PRAYER Writ Petition filed under Article 226 of the Constitution of India, praying for the issuance of a Writ of Certiorari, to call for the records relating to the public auction notice issued by the respondent and received by the petitioners on 15.02.2205 for the sale of the land of the second petitioner and quash the same. !For Petitioners ... Mr.S. Natarajan ^For Respondent ... Mr.Jayesh B.Dolia :ORDER
Heard Mr.S.Natarajan, the learned counsel appearing for the petitioners
and Mr. Jayesh B.Dolia, the learned counsel appearing for the respondent. By
consent of both counsel, the writ petition itself is taken up for final hearing.
2. This writ petition is filed challenging the auction notice of the
respondent dated 15.02.2005 issued under Section 29 of the State Financial
Corporation Act for the sale of property belonging to the petitioner, which was
given as collateral security for the loan availed by the petitioner from the
respondent.
3.The respondent has filed a counter. In paragraph 12 of the counter, the
respondent has specifically stated that one time settlement was sanctioned to
the petitioner by the respondent under the New ND & ND Scheme and on the basis
of that, the entire outstanding interest amounting to Rs.13,27,689.90 was waived
and the petitioner was requested to pay a sum of Rs.1,61,641.15 being the
Principal outstanding amount and all these amount was directed to be paid on or
before 31.03.2005.
4.Mr.S.Natarajan, learned counsel appearing for the petitioners would
submit that there was fire accident in the industry, which caused damage to the
materials and machineries and hence, leniency may be given for which learned
counsel also relied upon the order passed by the Principal Bench of this Court
in W.P.Nos.27404 and 1673 of 2003 and W.P.No.27404 of 2005 dated 01.03.2006 in
which applying the guidelines issued by the Reserve Bank of India, the Principal
Bench directed the petitioner therein to pay the amount of Rs.5,00,000/- and
then make a representation to the respondent for the purpose of payment of the
remaining amount under the Reserve Bank of India One Time Settlement Scheme.
5.However, the learned counsel for the respondent would submit that the
Reserve Bank of India Scheme is not applicable as far as respondent is concerned
and hence, such concession cannot be given. According to the respondent, the
Scheme had come to a close on 31.03.2005 itself and therefore, the entire amount
must have been paid on or before 31.03.2005. The concession given in paragraph
12 of the counter affidavit, as stated above, will be operative till 31.3.2006,
if the petitioner pays the said amount stipulated in para 12 stated above.
6.Considering the facts and circumstances of the case, I am of the view
that the petitioners shall be directed to pay 50% of the claim amount on or
before 31.03.2006 before the respondent and the remaining amount may be directed
to be paid in another instalment.
7.In view of the same, accepting the contention in para 12 of the counter
affidavit filed by the respondent stating that the respondent shall receive the
amount of Rs.1,61,641.15 along with interest at the rate of 11% from 01.11.2005,
as stated above, the petitioner is directed to pay 50% of the claim amount of
Rs.1,61,641.15 to the respondent on or before 31.03.2006. Thereafter, the
balance amount shall be paid by the petitioner within a period of three months
from 31.03.2006. The non-payment of any one of the said amount will entitle the
respondent to make the claim in accordance with law.
6. With the above direction, the writ petition is disposed of. There is no
order as to costs. Consequently, connected W.P.M.Ps. are closed.
mpk
To
Tamil Nadu Industrial Investment
Corporation Limited,
represented by its Branch Manager,
Mena complex 1st Floor,
West Main Street,
Pudukkottai – 622 001.
