{"id":150924,"date":"2003-07-09T00:00:00","date_gmt":"2003-07-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/p-kandasamy-vs-the-secretary-to-government-on-9-july-2003"},"modified":"2019-02-14T02:43:03","modified_gmt":"2019-02-13T21:13:03","slug":"p-kandasamy-vs-the-secretary-to-government-on-9-july-2003","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/p-kandasamy-vs-the-secretary-to-government-on-9-july-2003","title":{"rendered":"P. Kandasamy vs The Secretary To Government on 9 July, 2003"},"content":{"rendered":"<div class=\"docsource_main\">Madras High Court<\/div>\n<div class=\"doc_title\">P. Kandasamy vs The Secretary To Government on 9 July, 2003<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n IN THE HIGH COURT OF JUDICATURE AT MADRAS\n\nDATED: 09\/07\/2003\n\nCORAM\n\nTHE HONOURABLE MR JUSTICE P.D. DINAKARAN\n\nWRIT PETITION NO.18921 OF 2003\nAND\nW.P.M.P.NO.23682 of 2003\n\n1. P. Kandasamy\n2. P. Chenniappan\n3. P. Sivakumar\n4. Subburaya Gounder\n5. Chellamuthu\n6. Manoharan                                            ... Petitioners\n\n-Vs-\n\n1. The Secretary to Government\n   Government of Tamil Nadu\n   Home (Courts II A) Department\n   Fort St. George\n   Chennai - 5.\n\n2. The Inspector General of Police\n   Economic Offence Wing-II\n   Chennai.\n\n3. The Competent Authority and\n   Additional Commissioner of\n   Land Administration\n   Chennai.\n\n4. The District Registrar\n   Erode.                                       ... Respondents\n\n\n        Petition under Article 226 of the Constitution of  India  praying  for\nthe issuance of a Writ of Certiorari as stated therein.\n\nFor Petitioner :  Mr.  K.  Sukumaran\n\nFor Respondents :  Mr.  M.S.  Palanisamy, AGP.\n\n:O R D E R\n<\/pre>\n<p>        The  petitioners have filed the writ petition praying for the issue of<br \/>\na writ of Certiorari calling for the records relating to  the  proceedings  in<br \/>\nG.O.Ms.No:   400 dated 13.5.2003 of the Secretary to Government of Tamil Nadu,<br \/>\nHome (Courts II-A) Department, Secretariat, Chennai and quash the same  in  so<br \/>\nfar as the properties belonging to them.\n<\/p>\n<p>        2.  It is the case of the petitioners that the they have purchased the<br \/>\nproperties  in  their  name and they do not stand in the name of the financial<br \/>\nestablishment viz., M\/s.Kannagi Finance Corporation or  its  subsidiaries,  or<br \/>\nits members.  There is material to show that the properties were purchased out<br \/>\nof  the  deposits  collected  from  the  depositors and that they are not even<br \/>\npartners or members of the Financial Establishment, nor they are connected  in<br \/>\nany manner with the affairs of the financial establishment.\n<\/p>\n<p>        3.  However, the second respondent initiated penal proceedings against<br \/>\nthe  said  financial  institution  under  the  provisions  of  the  Tamil Nadu<br \/>\nProtection of Interest of Depositors (in Financial Establishments) Act,  1997,<br \/>\n(hereinafter referred to as the &#8216;Act&#8217;), pursuant to which the first respondent<br \/>\nissued G.O.Ms.No.400, dated 13.5.2003 for interim attachment of the properties<br \/>\nof the  petitioners  invoking  Section  3  of  the Act.  Hence, the above writ<br \/>\npetition.\n<\/p>\n<p>        4.1.  The Act is intended to protect the deposits made by  the  public<br \/>\nin the financial establishments and the matters thereto.\n<\/p>\n<p>        4.2.   The scheme of the Act provides for confirmation of the order of<br \/>\nattachment by the Special Court constituted under Section 6 of the Act.\n<\/p>\n<p>        4.3.  Section 7(1) of the Act provides a notice to be  served  on  the<br \/>\nfinancial  establishment  or  to  any  other person whose property is attached<br \/>\nunder Section 3 of the Act to show cause why the order  of  attachment  should<br \/>\nnot be made absolute.\n<\/p>\n<p>        4.4.   Section  7(3)  of  the  Act  provides  that any person claiming<br \/>\ninterest in the property attached or any portion thereof may,  notwithstanding<br \/>\nthat no notice has been served upon him under Section 7(1) of the Act, make an<br \/>\nobjection  before  the  order  is  passed  for  making  an order of attachment<br \/>\nabsolute under Section 7(4) of the Act.\n<\/p>\n<p>        4.5.  Section 7(6)  of  the  Act  enables  the  Special  Court,  after<br \/>\ninvestigation  under  sub-Section  (5) to Section 7 of the Act, either to make<br \/>\ninterim order of attachment absolute or varying it by releasing a  portion  of<br \/>\nthe  property  from  the  attachment  or  cancelling  the  ad interim order of<br \/>\nattachment, provided that the Special Court shall not release from  attachment<br \/>\nany  interest  which  it  is satisfied that the financial establishment or the<br \/>\nperson referred to in Sub section (1).\n<\/p>\n<p>        4.6.  Any person aggrieved by an order of the Special Court may appeal<br \/>\nto the High Court within thirty days from the date of the order, under Section<br \/>\n11 of the Act.\n<\/p>\n<p>        4.7.  The scheme of the Act  provides  built  in  provisions  for  any<br \/>\ninterested  person  whose property is complained to have been attached to seek<br \/>\nappropriate relief either before the Special Court or thereafter to prove  his<br \/>\ncase  during  the  investigation under Section 7(5) of the Act and thereafter,<br \/>\neven to prefer an appeal as provided under Section 11 of the Act.\n<\/p>\n<p>        5.  The grievance of the  petitioners  is  that  under  the  guise  of<br \/>\ncriminal  prosecution  initiated against the said financial institutions, viz.<br \/>\nM\/s.Kannagi  Finance  Corporation,  Kannagi  Investment  Corporation,  Kannagi<br \/>\nFinanciers,  Kannagi  Investment, Kannagi Motor Finance, Kannagi Motor Finance<br \/>\nCorporation, for the alleged contravention of the provisions of the  Act  read<br \/>\nwith  Sections  409  and  420,  IPC,  the first respondent has issued the G.O,<br \/>\nimpugned for attaching the properties of the petitioners  which  is  arbitrary<br \/>\nand illegal.\n<\/p>\n<p>        6.   But,  I do not see any arbitrary or illegal exercise of powers by<br \/>\nthe respondents in attaching the properties of the said Financial Institutions<br \/>\nwhile issuing G.O.  No.400 dated 13.5.2003 and proceeding therewith as per the<br \/>\nprovisions of the Act, inasmuch as the properties attached are  owned  by  the<br \/>\nsaid financial institutions.\n<\/p>\n<p>        7.  However,  if the properties attached under the said G.O.  is owned<br \/>\nby the petitioners, they are at liberty to approach the  Special  Court  under<br \/>\nSection  7(3)  of  the Act and to seek either to vary or to cancel the interim<br \/>\norder of attachment.  If they are still aggrieved by any order of the  Special<br \/>\nCourt, an appeal would lie under Section 11 of the Act.  Therefore, it may not<br \/>\nbe  proper  for  this  Court  to entertain this writ petition and to grant the<br \/>\nrelief as prayed for.  Hence, the writ  petition  is  dismissed.    No  costs.<br \/>\nConsequently, WPMP No.21275 of 2003 is also dismissed.\n<\/p>\n<p>Index   :  Yes<br \/>\nInternet:  Yes<\/p>\n<p>kb<\/p>\n<p>To<\/p>\n<p>1.  The Secretary to Government<br \/>\nGovernment of Tamil Nadu<br \/>\nHome (Courts II A) Department<br \/>\nFort St.  George<br \/>\nChennai &#8211; 5.\n<\/p>\n<p>2.  The Inspector General of Police<br \/>\nEconomic Offence Wing-II<br \/>\nChennai.\n<\/p>\n<p>3.  The Competent Authority and<br \/>\nAdditional Commissioner of<br \/>\nLand Administration<br \/>\nChennai.\n<\/p>\n<p>4.  The District Registrar<br \/>\nErode.\n<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court P. Kandasamy vs The Secretary To Government on 9 July, 2003 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 09\/07\/2003 CORAM THE HONOURABLE MR JUSTICE P.D. DINAKARAN WRIT PETITION NO.18921 OF 2003 AND W.P.M.P.NO.23682 of 2003 1. P. Kandasamy 2. P. Chenniappan 3. P. Sivakumar 4. Subburaya Gounder 5. Chellamuthu 6. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,13],"tags":[],"class_list":["post-150924","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madras-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>P. 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