Dismissed

M/S. Kristal Chemical v. Tamil Nadu Industrial

Madras HC20 Dec 2022WP(MD)/285/2012

Case brief

AI extract

What is this about?

Single-judge Bench of the Madras High Court dismissed a writ petition seeking a mandatory writ to direct the Industrial Investment Corporation to grant a one-time settlement of a term loan. The court relied on a recent Supreme Court ruling holding that no statutory right exists for borrowers to claim such settlements.

What did the court decide?

Petition dismissed; connected miscellaneous petition closed; no costs awarded.

M/S. Kristal Chemical Vs Tamil Nadu Industrial — Contract and Commercial Disputes | Madras HC (2022)

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W.P. (MD) No. 285 of 2012

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 20.12.2022

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C O R A M

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THE HONOURABLE MR.JUSTICE P.D.AUDIKESAVALU

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W.P. (MD) No. 285 of 2012 and

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M.P. (MD) No. 1 of 2012

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M/s.Kristal Chemical Industries, No.70, Alwar Street, Kovilpatti, Represented by its Partner, M.Dhanasekaran, No.30, 2^nd Street, Velayuthapuram, Kovilpatti, Tuticorin-District.

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... Petitioner

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Vs.

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1.Tamil Nadu Industrial Investment Corporation Ltd., Represented by its Branch Manager, 4/35, N.P.S.Complex, 2^nd Floor, Polpettai, Tuticorin & District.

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2.The General Manager, District Industries Centre, Palayamkottai Road, Tuticorin.

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3.The Director, Tamil Nadu Industrial Investment Corporation, No.692, Anna Salai, Chennai600 035.

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...Respondents

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[Third Respondent is impleaded vide order dated 03.02.2012]

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1/5

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https://www.mhc.tn.gov.in/judis

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W.P. (MD) No. 285 of 2012

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Prayer:

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Prayer: Writ Petition filed under Article 226 of the constitution of India, to issue a writ of Certiorarified Mandamus, to call for the records relating to the order passed by the first respondent in his order No.TIIC/TNY/BO/LAO/2011-12, dated 07.09.2011 and the telegram dated 20.12.2011 and quash the same and to direct the respondent to pass orders on the representation dated 27.04.2011 accepting the balance amount of Rs.4,45,462/- and close the term loan.

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For Petitioner : Mr. A.S.Mujibur Rahman For R2 : Mr. D.Gandhiraj Special Government Pleader For R3 : Mr. S.Suresh

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O R D E R

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Heard Mr. A.S.Mujibur Rahman, Learned Counsel for the Petitioner,

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Mr. D.Gandhiraj, Learned Special Government Pleader for the Second Respondent and Mr. S.Suresh, Learned Counsel for the Third Respondent and perused the materials placed on record apart from the pleadings of the parties.

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2/5

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https://www.mhc.tn.gov.in/judis

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W.P. (MD) No. 285 of 2012

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The Petitioner has challenged the Proceedings No. TIIC/TNY/ BO/LAO/2011-12 dated 07.09.2011 passed by the First Respondent in which his proposal for one time settlement by remitting Rs. 4,45,000/- was rejected and he has been called upon to pay the outstanding dues of Rs. 16,81,380/-as on 07.09.2011, failing which action would be taken for recovering the dues including enforcement of the securities.

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The Hon'ble Supreme Court of India in Bijnor Urban Cooperative Bank Limited, Bijnor -vs- Meenal Agarwal (Order dated 15.12.2021 in Civil Appeal No. 7411 of 2021) has categorically ruled that neither any borrower can as a matter or right pray for grant of benefit of one time settlement nor the High Court can issue any Writ of Mandamus in the exercise of powers under Article 226 of the Constitution directing the Financial Institution/Bank to positively grant the benefit of one time settlement to a borrower. In view of the aforesaid legal position, the Petitioner cannot be granted any relief as claimed in this Writ Petition.

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In the result, the Writ Petition is dismissed. Consequently connected Miscellaneous Petition is closed. No costs.

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3/5

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https://www.mhc.tn.gov.in/judis

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W.P. (MD) No. 285 of 2012

20.12.2022

Index : Yes/No

Note: Issue order copy by 30.01.2023.

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1.Tamil Nadu Industrial Investment Corporation Ltd., Represented by its Branch Manager, 4/35, N.P.S.Complex, 2^nd Floor, Polpettai, Tuticorin & District.

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2.The General Manager, District Industries Centre, Palayamkottai Road, Tuticorin.

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3.The Director, Tamil Nadu Industrial Investment Corporation, No.692, Anna Salai, Chennai600 035.

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4/5

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https://www.mhc.tn.gov.in/judis

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W.P. (MD) No. 285 of 2012

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P.D.AUDIKESAVALU,J.

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W.P.(MD)No.285 of 2012

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20.12.2022

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5/5

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https://www.mhc.tn.gov.in/judis

M/S. Kristal Chemical v. Tamil Nadu Industrial

Case brief

What is this about?

What did the court decide?

M/S. Kristal Chemical v. Tamil Nadu Industrial

Case brief

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What did the court decide?

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