Allowed

Administrator General and Official Trustee of Tamil Nadu v. Nil

Madras HC16 Feb 2023A/943/2023

Case brief

AI extract

What is this about?

The Administrator General and Official Trustee of Tamil Nadu applied for permission to publish details of 71 vacant trust estates in a Tamil newspaper for a public auction and call for tender. The court, satisfied with the report detailing the properties and proposed terms, allowed the applications to proceed with the publication and auction.

What did the court decide?

Permission granted for paper publication in Dinamalar in Chennai Edition and to conduct public auction by call for tender; costs to be met proportionately from trust estates.

Administrator General and Official Trustee of Tamil Nadu… — Landlord and Tenant | Madras HC (2023)

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A.Nos.943 & 944 of 2023

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A.Nos.943 & 944 of 2023

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S.VAIDYANATHAN,J.

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The learned Administrator General and Official Trustee of Tamil Nadu

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(“AG & OT” for brevity) has filed the application in A.No.943 of 2023, seeking permission to make paper publication in any one of the Tamil Newspaper in Chennai Edition, regarding the public auction to be held for the properties with upset price specified against each of the properties in the tabular (6) column in Para 4 of this report.

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The learned AG & OT has filed another application in A.No.944 of 2023 to meet out the total cost for paper publication and incidental expenses proportionately from the concerned Trust Estates for the properties to be let out.

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In support of the prayer sought for in the above application, the learned AG & OT has filed a report dated 14.02.2023, wherein, it has been stated as follows:

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“The Administrator General and Official Trustee of Tamil Nadu humbly submits that nearly about 200 Trust Estates are being administered by the Administrator General and Official Trustee of Tamil Nadu. From and out of the Trust Estates both the Administrator General and Official Trustee sides there are about 500 properties let out to various tenants for Residential and Non-Residential on monthly rent basis and also yearly lease basis for agricultural land.

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2.The Administrator General and Official Trustee further submits that as of now there are 71 properties kept vacant and idle. These properties are in and around Chennai. The AG & OT has to take necessary steps to lease out the property to fetch income for charity purpose and the interested person may take the property for rent or lease basis. The properties are connected to various Trust Estates under the control of Administrator General and Official Trustee of Tamil Nadu in different locations with different extents.

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3. The Administrator General and Official Trustee further submits that most of the buildings are very old. Considering the conditions of the buildings, it is decided to lease them out in “ as is where is condition” . After the successful bidder execute their lease agreement, they may be permitted to put up new construction in the vacant trust properties at their own cost by obtaining appropriate orders from the Hon’ble High Court and also building approval plan from competent authorities. For arriving the monthly rent and upset price, the present guideline value is taken for consideration, but not in entirely. Tentative rent assessment is also done, which is lesser than the guideline value estimation.

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4. The Administrator General and Official Trustee further submits that the following tabular column will give a clear picture about the name of the trust estate, address of the property, nature of the property, extent of the property, upset price based on the guide line value and Earned Money Deposit (EMD) as tentatively decided by AG & OT, to the respective property for better appreciation.

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Vacant Properties in the Name of The Administrator General and Official Trustee of Tamil Nadu

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(scanned copy)

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The Administrator General and Official Trustee further submits that the above referred upset price for monthly rent has been arrived to the nearest thousand denomination on the basis of considering the extent and rate per Sq. Ft. as per guide line value.

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The Administrator General and Official Trustee further submits that since these properties are kept idle without any income it is better to lease out the property with moderate upset price for monthly rent for the reasons once the property is taken for lease, and during the renewal time, the rent may be enhanced substantially considering the guideline value and other relevant aspects at that time.

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The Administrator General and Official Trustee further submits that there are instances that the Administrator General and Official Trustee is unable to collect the arrears of rent, water charges, electricity charges in huge amount once the tenants vacate and their whereabouts are unable to be ascertained by the Administrator General and Official Trustee. Even after earnest efforts are taken, the whereabouts of the tenants could not be traced out. In view of the above, the AG & OT is of the firm opinion that an adequate caution deposit in addition to security deposit may be received from the tenants at the time of entering into lease / rental agreement. It would be in a better remedy to adjust the caution deposit towards the arrears of rent, water charges and electricity charges due if any. The experience shows that in most of the cases, no immediate action was

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initiated in the past when the tenants committed default to pay the monthly rent. If an action could have been taken at the earliest point of time there could be chances either to recover the arrears of rent, water and electricity bill charges or to recover vacant possession. Even to that aspect it would normally take minimum one year period to get anything to be done.

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The Administrator General and Official Trustee further submits that sec.11 of the Tamil Nadu Regulation of Right and Responsibilities of Landlords and Tenants Act, 2017 directs that maximum of 3 times of monthly rent may be received as security deposit. In the same line of analogy, the Administrator General and Official Trustee may be permitted to receive 3 months’ rent as security deposit (Rental Advance). In addition to that 7 times of monthly rent may be collected as caution deposit for the purpose of recovering the arrears of rent or damages for use and occupation or damages of the building and the same be adjusted from the deposits without heavy loss to the office of the Administrator General and Official Trustee. Altogether 10 months’ rent may be collected as security deposit and caution deposit.

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The AG & OT further submits that in view of the above, for quick and better administrative reason, a comprehensive single application is filed seeking permission of this Hon’ble Court to grant permission for paper publication and to conduct public auction by call for tender in the office of Administrator General and Official Trustee , and thereafter, file a report before this Hon’ble Court for confirmation etc.

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The Administrator General and Official Trustee submits that in view of the above, the applicant has proposed to effect paper publication in Dina Malar in Tamil Daily newspaper in Chennai Edition for letting out the above said properties through public auction by way of calling tenders from the general public in Chennai. It is further proposed to issue auction application with terms & condition to the general public at the cost of Rs.200/- each and thereafter to conduct the public auction in the office of Administrator General and Official Trustee. On completion of the auction procedure a report would be filed before this Hon’ble Court for confirmation of the highest bidders.

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The AG & OT further submits a draft paper publication advertisement is marked as Exhibit D1 and the application with terms and conditions to participate in the public auction is marked as Exhibit D2 .

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The AG & OT further submits that a draft paper publication advertisement, application, terms and conditions to participate in the public

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

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A.Nos.943 & 944 of 2023

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auction are enclosed along with this application. As the properties of the various trust estates are included in a single paper publication, the total paper publication cost and other incidental cost for conducting the public auction may be met out proportionately from all the concerned trust estates.

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I am satisfied with the averments stated in the report filed in support of the above applications. Accordingly, the above applications are allowed . The learned AG & OT is permitted to make paper publication in one issue of Tamil Newspaper namely “Dinamalar” in Chennai Edition regarding the public auction to be held for the properties with upset price extracted supra and to meet out the total cost for paper publication and incidental expenses proportionately from the concerned Trust Estates in respect of the properties to be let out.

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16.02.2023

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Note: Issue order copy on 16.02.2023

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

Administrator General and Official Trustee of Tamil Nadu v. Nil

Case brief

What is this about?

What did the court decide?

Administrator General and Official Trustee of Tamil Nadu v. Nil

Case brief

What is this about?

What did the court decide?

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