Madras High Court
M/S.Chain Stitch Creations vs The Chairman And Managing Director on 20 July, 2022
Author: C.Saravanan
Bench: C.Saravanan
W.P.No.28390 of 2010
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 20.07.2022
CORAM
THE HON'BLE MR.JUSTICE C.SARAVANAN
W.P.No.28390 of 2010
&W.P.No.11138 of 2019
and
WMP No.11545 of 2019
M/s.Chain Stitch Creations,
Rep., by its Authorised Signatory
K.Karuppaiah
No.12/94, Mogappair East,
Chennai ... Petitioner in both W.Ps.,
Vs.
1.The Chairman and Managing Director,
SIDCO., Industrial Estate,
Electronic Complex,
Guindy, Chennai – 600 032.
2.Empee Paints & Chemicals,
Rep., by its Proprietor M.Mahaveer,
No.3/1, Subba Reddy Road,
West Mambalam,
Chennai – 600 033 ... 1st & 2nd Respondents in both W.Ps.,
3.K.Selvam ... 3rd respondent in W.P.No.11138/2019
____________
https://www.mhc.tn.gov.in/judis
Page No. 1 of 15
W.P.No.28390 of 2010
Prayer in W.P.No.28390 of 2010: Writ Petition filed under Article 226 of
Constitution of India, for issuance of a Writ of Certiorarified Mandamus, to
call for the records of first respondent in Proceedings No.148/1E-2A/1994
dated 27.08.2010, and to quash the same and consequently directing the first
respondent to re-allot the shed NO.F-20, Ambattur Estate, Chennai in the
name of the petitioner company.
Prayer in W.P.No.11138 of 2019: Writ Petition filed under Article 226 of
Constitution of India, for issuance of a Writ of Certiorarified Mandamus, to
call for the records of the impugned allotment order issued by the 1st
respondent in Rc.No.2916/IE-2/2018, dated 08.10.2018 in favour of the third
respondent and quash the same and consequently direct the first respondent
to issue the transfer or allotment order in the name of the petitioner company
for shed No.F-20, Ambattur Estate, Chennai.
For Petitioner : Mr.R.Anbukarasu in both W.Ps.,
For Respondents : Mr.V.P.Sengottuvel for R1 in both W.Ps.,
No Appearance for R2
COMMON ORDER
By this common order, both the Writ Petitions have been taken up for final disposal. Both the writ petitions have been filed by the same petitioner. ____________ https://www.mhc.tn.gov.in/judis Page No. 2 of 15 W.P.No.28390 of 2010
2. In W.P.No.28390 of 2010, the petitioner has challenged the impugned proceedings of the first respondent viz., Chairman and Managing Director, of SIDCO dated 27.08.2010 vide proceedings No.148/1E-2A/1994 and to quash the same.
3. By the aforesaid order, the first respondent has rejected the petitioner's representation for allotting the land in Plot No.F20, Ambattur Estate, Chennai.
4. In W.P.No.11138 of 2019, the petitioner has challenged the allotment made in favour of the third respondent in the said Writ Petition pursuant to the rejection of the request of M/s.VKN creations which is also proprietary concern of the petitioner herein M/s.Chain Stitch Creations.
5. The facts on record indicate that originally the first respondent had leased the land in favour of M/s.Mehtha Paints Work on 02.05.1973. Thereafter, the land along with a rental shed in the said respondent’s Industrial Estate, Ambattur, Madras-58, was allotted to M/s.Empee Paints & Chemicals vide Allotment Letter dated 23.10.1976. ____________ https://www.mhc.tn.gov.in/judis Page No. 3 of 15 W.P.No.28390 of 2010
6. On 30.08.1982, the respondent SIDCO Limited offered M/s.Empee Paints & Chemicals to take the land and the shed in Plot No.F-20 on lease- cum-sale basis subject to certain conditions therein.
7. The provisional cost of the land and building No.F-20 was determined as Rs.2,12,307/-. A sum of Rs.42,408/- being the 20% of the above cost, rental dues and other charges were to be paid. The balance amount was to be paid in 8 equated half yearly instalments together with interest of the principal amount at 13.5% per annum.
8. It appears that the conditions were not complied by M/s.Empee Paints & Chemicals. The respondent SIDCO Limited, by its communication dated 04.06.1997 bearing reference ARC No.148/FUII/94, thus cancelled the lease-cum-sale agreements with the said M/s.Empee Paints & Chemicals and directed the said M/s.Empee Paints & Chemicals to hand over the shed to the Project Officer of SIDCO Limited, within 30 days from the date of receipt of the said letter dated 04.06.1997, failing which, proceedings under the Tamil Nadu Public Premises (Eviction and Unauthorised Occupants) Act, 1975 would be initiated.
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9. The petitioner claims that it has been in possession of the aforesaid property since 1982 allotted to M/s.Empee Paints & Chemicals vide Allotment Letter dated 30.08.1982, bearing reference Rc.No.47367.
10. It is submitted that M/s.Empee Paints & Chemicals was in due of the allotment amounts and therefore on 31.01.2003, the respondent SIDCO Limited demanded a sum of Rs.9,00,000/- from the said M/s.Empee Paints & Chemicals for the following amounts:-
i. Land & Shed cost Rs. 2,37,307.80
ii. Interest Rs. 6,29,864.50
iii.Maintenance Charge Rs. 29,444.00
iv.Water Charge Rs.3,389.70
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Total Rs. 9,00,000.00
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11. M/s.Empee Paints & Chemicals also appears to have remitted the amount as was demanded by the respondent SIDCO Limited vide Demand Notice dated 31.01.2003, on the very same day.
12. The Demand Notice dated 31.01.2003 was on the condition that if ____________ https://www.mhc.tn.gov.in/judis Page No. 5 of 15 W.P.No.28390 of 2010 the above payment was made, there was no impediment in effecting transfer as desired by the M/s.Empee Paints & Chemicals.
13. Later, the respondent SIDCO Limited issued a letter dated 26.03.2003 to the said M/s.Empee Paints & Chemicals and demanded a sum of Rs.60,56,614/- after adjusting a sum of Rs.9,00,000/- paid by M/s.Empee Paints & Chemicals on 31.01.2003.
14. It is the case of the petitioner that since the amount was paid as was demanded on 31.01.2003, a request was made by M/s.Empee Paints & Chemicals to transfer the said allotment in favour of the petitioner and therefore, a representation was given to the respondent by the petitioner on 21.12.2009.
15. The request was rejected by the impugned order dated 08.10.2018, after the petitioner had filed a Writ Petition before this Court in W.P.No.4027 of 2010.
16. It is submitted that the invocation of the provisions of the Tamil ____________ https://www.mhc.tn.gov.in/judis Page No. 6 of 15 W.P.No.28390 of 2010 Nadu Public Premises Act, 1975 was liable to be interfered with and therefore, consequential allotment in favour of the third respondent provisionally on 08.10.2018 and the subsequent final allotment on 29.04.2019 was liable to be interfered with.
17. The allotment made to M/s.Empee Paints & Chemicals in the year 1982 was cancelled by the first respondent vide Proceedings dated 04.06.1997 bearing reference ARC.No.148/FUII/94. The reasoning for cancellation of allotment was that the said M/s.Empee Paints & Chemicals had not cleared the dues as on date 31.03.1997 and accumulated the dues to the tune of Rs.6,68,451.30 approximately.
18. Under these circumstances, the said M/s.Empee Paints & Chemicals was directed to hand over the land along with shed in No.F-20 to the Project Officer of the respondent SIDCO Limited.
19. Since the said M/s.Empee Paints & Chemicals has cleared the shed, the shed cost was revised to Rs.69.24 Lakhs vide Letter dated 18.03.2003. Meanwhile, action under the provisions of the Tamil Nadu ____________ https://www.mhc.tn.gov.in/judis Page No. 7 of 15 W.P.No.28390 of 2010 Public Premises (Eviction and Unauthorised Occupants) Act, 1975 was initiated.
20. The subsequent allottee M/s.Empee Paints & Chemicals thus filed W.P.No.17393 of 2003 before this Court against the order. An application for interim order was filed. It appears that it was dismissed. The petitioner thereafter filed W.A.No.211 of 2004. It was closed by the First Bench of this Court vide order dated 22.02.2005.
21. The said W.P.No.17393 of 2003 was also disposed by the learned Single Judge of this Court vide order dated 01.09.2005. Copies of the said orders have not been filed before this Court. It however appears that the said Writ Appeal was closed before the disposal of Writ Petition.
22. Meanwhile, a proprietary concern under the name and style “M/s.V.K.N.Creations” represented by its proprietor Mr.K.Karuppaiah had given a representation dated 12.09.2005 to the respondent SIDCO. Since no order was passed, W.P.No.35690 of 2005 was filed by “M/s.V.K.N.Creations” represented by its proprietor Mr.K.Karuppaiah before ____________ https://www.mhc.tn.gov.in/judis Page No. 8 of 15 W.P.No.28390 of 2010 this Court.
23. By an order dated 09.11.2005, the said Writ Petition filed by V.K.N.Creations was disposed by directing the respondent SIDCO Limited to dispose the said representation dated 12.09.2005 by giving suitable opportunity to the petitioner therein.
24. In the said proceedings, M/s.Empee Paints & Chemicals was arrayed as the second respondent. Pursuant to the above, the respondent SIDCO Limited passed an order dated 28.12.2005. The respondent SIDCO Ltd rejected the claim of ofV.K.N.Creations (petitioner's proprietor).
25. Meanwhile, it appears that M/s.Empee Paints & Chemicals has executed a deed of willingness with the petitioner on 07.01.2003 and that on 13.01.2003, the said M/s.Empee Paints & Chemicals sent representation to the first respondent Branch Manager, SIDCO Limited, Ambattur Estate, to transfer or re-allot the land to M/s.Chain Stitch Creations represented by its sole proprietor Mr.S.Chandrasekaran.
____________ https://www.mhc.tn.gov.in/judis Page No. 9 of 15 W.P.No.28390 of 2010
26. In the background of the above, a demand notice dated 31.01.2003 appears to have been issued by the first respondent Branch Manager, wherein, an amount of Rs.9,00,000/- was demanded from the said M/s.Empee Paints & Chemicals.
27. Later, in 2005, the proprietor of V.K.N.Creations appears to have given an authorization to M/s.Chain Stitch Creations. Thereafter, the petitioner represented by K.Karuppaiah who is the proprietor of V.K.N.Creations sent representation dated 21.12.2009 to issue transfer order in favour of the petitioner M/s.Chain Stitch Creations.
28. Since no order was passed on the representation of the petitioner dated 21.12.2009, the petitioner M/s.Chain Stitch Creations filed W.P.No.4027 of 2010. The said Writ Petition was disposed by an order dated 26.02.2010 with direction to the first respondent to consider the representation dated 21.12.2009 on merits and in accordance with law expeditiously.
29. Pursuant to the above order dated 26.02.2010, the first respondent ____________ https://www.mhc.tn.gov.in/judis Page No. 10 of 15 W.P.No.28390 of 2010 considered the representation dated 21.12.2009 and rejected the request of the petitioner vide impugned order dated 27.08.2010 which is the subject matter of the present W.P.No.28390 of 2010.
30. The petitioner has thereafter filed O.S.No.732 of 2004 before the II Additional Fast Track Court, Chennai for a permanent injunction to restrain the respondent SIDCO from interfering with the peaceful possession. The said suit was dismissed for default.
31. The petitioner appears to have field application for restoration of the suit. It was also dismissed and therefore, the petitioner has filed C.R.P.Nos.1575 and 1576 of 2014 before this Court which are pending.
32. Meanwhile, the first respondent SIDCO vide impugned order 08.10.2018, has allotted the land and shed to the third respondent in W.P.No.11138 of 2019, M/s.Clarion Enterprises represented by its Proprietor K.Selvam.
33. Opposing the prayer, the learned counsel appearing for the first ____________ https://www.mhc.tn.gov.in/judis Page No. 11 of 15 W.P.No.28390 of 2010 respondent submits that W.P.No.28390 of 2010 has become infructuous in view of the subsequent developments. It is further submitted that the petitioner is neither an allottee nor a transferee. It is further submitted that the petitioner was also not in possession of the property.
34. It is submitted that only M/s.Empee Paints & Chemicals was in possession and was the allottee. The petitioner's proprietor namely Mr.K.Karuppaiah had earlier filed another Writ Petition in W.P.No.35690 of 2005, to consider the representation dated 12.09.2005, which came to be allowed, pursuant to which, an order dated 28.12.2005 came to be passed rejecting the request of the petitioner's proprietor Mr.K.Karuppaiah.
35. After the aforesaid proceedings, the proceedings under the Tamil Nadu Public Premises Act were also initiated against the allottee M/s.Empee Paints & Chemicals with the issue of notice dated 17.10.2005 and that further appeal by M/s.Empee Paints & Chemicals also came to be dismissed by the Principal District Judge, Tiruvallur in P.P.C.M.A.No.12 of 2007. ____________ https://www.mhc.tn.gov.in/judis Page No. 12 of 15 W.P.No.28390 of 2010
36. The petitioner has no right for the land as the petitioner was not an allottee. Therefore, this Court is of the view that there is no brevity of contract between the petitioner and the respondent SIDCO. All the proceedings that were initiated earlier under the provisions of the Tamil Nadu Public Premises Act were also by the original allottee from whom the petitioner claims to have acquired certain rights in terms of allotted deed of willingness dated 07.01.2003.
37. If the petitioner was so aggrieved, the petitioner ought to have impleaded itself and filed appropriate applications for setting aside the deed of willingness, which were ordered earlier.
38. In my view, there is no merits in these two Writ Petitions particularly in the light of the subsequent developments with the allotment in favour of M/s.Clarion Enterprises represented by Mr.Selvam, the third respondent in W.P.No.11138 of 2019.
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39. Accordingly, the Writ Petitions stand dismissed. No costs. Consequently, connected miscellaneous petition is closed.
20.07.2022 Index : Yes/No Internet : Yes/No Speaking/Non-speaking Order pbn / jen ____________ https://www.mhc.tn.gov.in/judis Page No. 14 of 15 W.P.No.28390 of 2010 C.SARAVANAN, J.
pbn / jen To
1.The Chairman and Managing Director, SIDCO., Industrial Estate, Electronic Complex, Guindy, Chennai – 600 032.
W.P.No.28390 of 2010 &W.P.No.11138 of 2019
20.07.2022 ____________ https://www.mhc.tn.gov.in/judis Page No. 15 of 15