Madras High Court
M/S. Achutha Engineering Private ... vs The Tamil Nadu Industrial Investment ... on 14 February, 2024
Author: P.D. Audikesavalu
Bench: P.D. Audikesavalu
W.P. No. 2359 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 14.02.2024
CORAM
THE HON'BLE MR. JUSTICE P.D. AUDIKESAVALU
W.P. No. 2359 of 2024
and
W.M.P. Nos. 2546 to 2548 of 2024
M/s. Achutha Engineering Private Limited,
Represented by its Managing Director,
G.Narayanan,
Plot No. 3(C-1) Electrical & Electronic Industrial Estate,
Hosur – 635 109. … Petitioner
-vs-
1. The Tamil Nadu Industrial Investment Corporation Limited (TIIC),
Represented by its Branch Manager,
Plot No. 308 & 309, SIPCOT Industrial Complex,
Asset Recovery Branch,
Opp. LAL Near SBI/HOSTIA Office,
Mookandapalli NH – 47,
Hosur – 635 126.
2. Metrolab Engineering Private Limited,
Represented by its Director,
Abhijeet Vengatesh Rao Buyre,
Gat No. 43, Navlakh Umbre,
Talegoan MIDC,
Pune – 410 507,
Maharashtra.
3. S.Sivalingam
(R2 & R3 are impleaded vide order
dated 06.02.2023 in W.M.P. No. 3061 of 2024) ...
Respondents
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W.P. No. 2359 of 2024
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W.P. No. 2359 of 2024
Prayer:- Writ Petition filed under Article 226 of the Constitution of India,
1950, praying to issue a Writ of Certiorarified Mandamus, calling for the
records in the proceedings in the notices Ref. No. TIIC/HSR/BO/FU/2023-24
dated 17.11.2023 and Ref. No. TIIC/HSR/BO/FU/2023-24 dated 04.01.2024
issued by the Respondent and quash the same and to direct the Respondent to
stop all further proceeding done based on the notices dated 17.11.2023 and
04.01.2024.
For Petitioner : Ms. V.Kayalvizhi
For Respondents : Mr. K.Magesh, Standing Counsel (for R1)
ORDER
Heard Ms. V.Kayalvizhi, Learned Counsel for the Petitioner and Mr. K.Magesh, Learned Standing Counsel appearing for the First Respondent and perused the materials placed on record, apart from the pleadings of the parties.
2. Having regard to the nature of order proposed to be passed in the Writ Petition, which would not cause any prejudice to the Second and Third Respondents, notice to them is dispensed with. https://www.mhc.tn.gov.in/judis 3/8 W.P. No. 2359 of 2024
3. The Petitioner had obtained term loans aggregating to Rs. 4,78,00,000/- on various dates between the years 2016 to 2021, as per details shown below:-
S. Loan Date of Amount
No. Account No. sanction sanctioned
(in Rs.)
1. 84T1461 21.04.2016 2,78,00,000/-
2. 84T1511 23.03.2018 50,00,000/-
3. 84T1553 18.02.2019 1,00,00,000/-
4. 84T1649 25.05.2020 25,00,000/-
5. 84T1722 27.03.2021 25,00,000/-
Total 4,78,00,000/-
As there was default in the repayment of the said loans, the First Respondent had taken action for taking possession of the mortgaged property in terms of Section 29 of the State Financial Corporations Act, 1951. The Petitioner had then filed the Writ Petition in W.P. No. 8000 of 2022 before this court challenging notices dated 08.11.2021 and 11.01.2022 and interim order was passed on 04.04.2022 at the time of admission then taking note of the COVID pandemic to remit two installments of Rs. 35,00,000/- each aggregating to Rs. 70,00,000/- as condition for grant of interim stay. During the next hearing on 19.04.2022, it was recorded by this Court that the first installment itself has not been paid and the stay petition was dismissed and subsequently, the Writ https://www.mhc.tn.gov.in/judis 4/8 W.P. No. 2359 of 2024 Petition was dismissed for non-prosecution on 09.11.2023. Thereafter, valuation of the property was made and by Notice No. TIIC/HSR/BO/FU/2023- 24 dated 13.09.2023, the Petitioner was informed by the First Respondent of the proposal to bring its property for auction sale along with valuation report. Even then, the Petitioner has not taken any step to discharge the liability. The First Respondent thereafter fixed the e-auction on 05.12.2023 and had issued Notice No. TIIC/HSR/BO/ FU/2023-24 dated 17.11.2023 in that regard, which was acknowledged by the Petitioner. The First Respondent by Notice No. TIIC/HSR/BO/FU/2023-24 dated 04.01.2024 fixed the upset price of the factory land and building as Rs. 2,44,89,000/- and the upset price of the machinery as Rs. 2,05,28,000/- aggregating to the total amount of Rs. 4,50,17,000/-. In the e- auction, highest offer of Rs. 2,45,14,000/- for factory land and building and Rs. 2,05,53,000/- for machinery had been received from the highest bidder and confirmation of the same was to be made. At that stage, the Petitioner has filed this Writ Petition challenging the said notices dated 07.11.2023 and 04.01.2024 of the First Respondent.
4. When the matter came up for hearing before this Court on 05.02.2024 and 06.02.2024, the Petitioner had sought for adjournment assuring settlement of dues to the First Respondent, but nothing has fructified till date. Further, no https://www.mhc.tn.gov.in/judis 5/8 W.P. No. 2359 of 2024 infirmity has been shown relating to the e-auction conducted.
5. A vain attempt has been made by Learned Counsel for the Petitioner to canvass as if the upset price fixed is low. The First Respondent by Notice No. TIIC/HSR/BO/FU/2023-24 dated 04.01.2024 had already informed the Petitioner about the fixation of the upset price of the property prior to conduct of e-auction. If the Petitioner has any objection or grievance over the fixation of upset price, it ought to have then raised it immediately. Having failed to do so, the Petitioner cannot question the fixation of upset price of the property after the e-auction has been conducted after due notice to it.
6. Learned Standing Counsel appearing for the First Respondent states that under the guise of pendency of the Writ Petition, the Petitioner has not been handing over the possession of the property. It is made clear that the Respondents are at liberty to follow the prescribed procedure to take over possession of the property with police assistance, if necessary, for carrying out the same.
https://www.mhc.tn.gov.in/judis 6/8 W.P. No. 2359 of 2024 In the result, the Writ Petition is dismissed with the aforesaid observations. Consequently, the connected Miscellaneous Petitions are closed. No costs.
14.02.2024 Index: Yes/No NCC: Yes/No Note: Issue order copy by 24.05.2024.
vjt To The Branch Manager, Tamil Nadu Industrial Investment Corporation Limited (TIIC), Plot No. 308 & 309, SIPCOT Industrial Complex, Asset Recovery Branch, Opp. LAL Near SBI/HOSTIA Office, Mookandapalli NH – 47, Hosur – 635 126.
https://www.mhc.tn.gov.in/judis 7/8 W.P. No. 2359 of 2024 P.D. AUDIKESAVALU, J.
vjt W.P. No. 2359 of 2024 14.02.2024 https://www.mhc.tn.gov.in/judis 8/8