{"id":152144,"date":"2009-12-18T00:00:00","date_gmt":"2009-12-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-kanchanaa-hotels-private-vs-the-chairman-and-managing-on-18-december-2009"},"modified":"2017-07-05T15:01:16","modified_gmt":"2017-07-05T09:31:16","slug":"ms-kanchanaa-hotels-private-vs-the-chairman-and-managing-on-18-december-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-kanchanaa-hotels-private-vs-the-chairman-and-managing-on-18-december-2009","title":{"rendered":"M\/S. Kanchanaa Hotels Private &#8230; vs The Chairman And Managing &#8230; on 18 December, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Madras High Court<\/div>\n<div class=\"doc_title\">M\/S. Kanchanaa Hotels Private &#8230; vs The Chairman And Managing &#8230; on 18 December, 2009<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT\n\nDATED: 18\/12\/2009\n\nCORAM\nTHE HONOURABLE MR.JUSTICE D.MURUGESAN\n\nW.P(MD)No.4533 Of 2005\nand\nW.P.M.P(MD)No.4827 of 2005\nW.V.M.P(MD)No.369 of 2005\t\n\nM\/s. Kanchanaa Hotels Private Limited,\nrepresented by its Director,\n50, Williams Road,\nTiruchirappalli.\n\t\t\t\t\t        ..Petitioner\n\nvs\n\n1.  The Chairman and Managing Director,\n    State Industries Promotion Corporation\n    of Tamil Nadu Limited,\n    19-A, Rukmani lakshmipathy Road,\n    Post Box No.7223, Egmore,\n    Chennai - 600 008.\n\n2.  The Deputy General Manager(F and R-I)\n    State Industries Promotion Corporation\n    of Tamil Nadu Limited,\n    19-A, Rukmani lakshmipathy Road,\n    Post Box No.7223, Egmore,\n    Chennai - 600 008.\t\t\t        ..Respondents\n\n\nPRAYER\n\nWrit Petition filed under Article 226 of the Constitution of India,\npraying to issue a Writ of  Certiorarified Mandamus calling for the records\nrelation to the order passed by the first respondent in f and F-1\/806\/2005,\ndated05.05.2005, quahs the same and to direct the first respondent to consider\nthe petitioner's representations, dated 14.3.2005 and 16.3.2005 and consequently\nto consider and grant waiver of interest on interest and penal interest charged\non the petitioner's term loan being principal together with simple interest.\n\n!For Petitioner   ...  Mr.J.Anand Kumar\n\t\t       for Mr.N.R.Elango\n^For Respondents  ...  Mr.V.Ramalingam\n\n\n:ORDER\n<\/pre>\n<p>\tThe petitioner company through its Director, sought financial assistance<br \/>\nthrough SIPCOT, for construction of a hotel and availed a sum of Rs.135 lakhs on<br \/>\n15.02.1996 and an additional loan of Rs.60 lakhs on 07.04.98. The company could<br \/>\nnot repay the amount in full. Therefore, a onetime settlement  scheme was<br \/>\narrived at.  The SIPCOT by its communication, dated 11.04.2005 accepted for<br \/>\nonetime settlement, with a condition that the petitioner should pay 25% of the<br \/>\nonetime settlement within a period of 15 days from the date of communication of<br \/>\nthe said letter and to pay the balance amount within a period of 90 days from<br \/>\nthe date of the said letter. However, the petitioner instead of complying with<br \/>\nthe above condition, has only requested for further time of three months for<br \/>\nsettlement of dues.  That was not accepted by the SIPCOT and by the impugned<br \/>\ncommunication, dated 05.05.2005, the petitioner was advised to pay only 25% of<br \/>\nOTS amount of Rs.138.02 lakhs on or before 23.05.2005, failing which, the OTS<br \/>\nproposal  will be cancelled. The petitioner was also advised that the balance<br \/>\namount  to be paid within 90 days as informed in their letter, dated 11.04.2005.<br \/>\nThis order is in question in this Writ Petition, mainly on the ground that<br \/>\nthough the petitioner has requested the SIPCOT in their letter, dated 16.03.2005<br \/>\nto waive the interest on interest charged on the loan and the penal interest<br \/>\ncharged so far in full, the same was not considered.\n<\/p>\n<p>\t2.  I have considered the submissions made by the learned counsel  for the<br \/>\npetitioner and the learned counsel for the respondents.\n<\/p>\n<p>\t3.  It is now well settled law that this Court is not justified in issuing<br \/>\na direction to the bank or the finacial institution for onetime settlement as<br \/>\nhas been held by the Division Bench  of this Court in Tamil Nadu Industrial<br \/>\nInvest Corporation Limited., represented by its Managing Director, No.473, Anna<br \/>\nSalai, Nandanam, Chennai &#8211; 600 035 .vs. Millenium Business Solutions Private<br \/>\nLimited, represented by its Managing Director, No.1\/9, Padmam Flats, P.P.Rao<br \/>\nRoad, Balaji Nagar, Royapettah, Chennai-14 and another reported in 2004 (5) CTC\n<\/p>\n<p>689. That judgement of the Division Bench was followed subsequently in<br \/>\nW.P.No.19707 of 2005 by another Division Bench, dated 19.07.2005. Recently,<br \/>\nanother Division Bench also followed the said judgment in W.P.No.12654 of 2009,<br \/>\ndated 03.12.2009.\n<\/p>\n<p>\t4. That apart, when the advise for onetime settlement was mooted out, the<br \/>\npetitioner had only prayed for three months time and did not raise any dispute<br \/>\nas regards the quantum. Though the respondent SIPCOT did not agree for extension<br \/>\nof three months time, nevertheless, had given further advise to pay at least 25%<br \/>\nof the amount on or before 23.05.2005 and the balance amount in three months as<br \/>\ndirected in letter,  dated 11.04.2005.  These orders have not been complied with<br \/>\nand any interference of the impugned order would amount to directing the<br \/>\nrespondents to accept the onetime settlement, which this Court cannot do.\n<\/p>\n<p>\t5. Hence, I find no merit to interfere with the order. Neveretheless, as<br \/>\nthe petitioner has brought to the notice of this Court, a communication, dated<br \/>\n16.03.2005, seeking for waiver of interest on interest and the penal interest in<br \/>\nfull, it is for the respondent bank to consider the same and in this regard, the<br \/>\npetitioner can approach the bank.\n<\/p>\n<p>\t6. The Writ Petition is dismissed, with the above observations.<br \/>\nConsequently, connected Miscellaneous Petitions are dismissed. No costs.\n<\/p>\n<p>vsn<\/p>\n<p>To<\/p>\n<p>1.  The Chairman and Managing Director,<br \/>\n    State Industries Promotion Corporation<br \/>\n    of Tamil Nadu Limited,<br \/>\n    19-A, Rukmani lakshmipathy Road,<br \/>\n    Post Box No.7223, Egmore,<br \/>\n    Chennai &#8211; 600 008.\n<\/p>\n<p>2.  The Deputy General Manager(F and R-I)<br \/>\n    State Industries Promotion Corporation<br \/>\n    of Tamil Nadu Limited,<br \/>\n    19-A, Rukmani lakshmipathy Road,<br \/>\n    Post Box No.7223, Egmore,<br \/>\n    Chennai &#8211; 600 008.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court M\/S. Kanchanaa Hotels Private &#8230; vs The Chairman And Managing &#8230; on 18 December, 2009 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 18\/12\/2009 CORAM THE HONOURABLE MR.JUSTICE D.MURUGESAN W.P(MD)No.4533 Of 2005 and W.P.M.P(MD)No.4827 of 2005 W.V.M.P(MD)No.369 of 2005 M\/s. Kanchanaa Hotels Private Limited, represented by its Director, 50, Williams Road, [&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-152144","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>M\/S. 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