The High Court dismissed a writ petition challenging an order for the auction of secured assets following default on loans. Rejecting the petitioner's plea for continued relief due to unfulfilled undertakings, the Court denied further indulgence.
Writ Petition dismissed; connected Miscellaneous Petition closed. No costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
W.P. No. 4251 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 14.12.2023
CORAM
THE HON'BLE MR. JUSTICE P.D. AUDIKESAVALU
W.P. No. 4251 of 2021
and
W.M.P. No. 4856 of 2021
M/s. Sakthivel Modern Rice Mill Represented by its Proprietor K.Sivakumar, Door No. 18, Oraiyur Road, Thorapaddi Village, Pudupettai – 607108, Panruti Taluk, Cuddalore.
… Petitioner
-vs-
Prayer:- Writ Petition filed under Article 226 of the Constitution of India, 1950, praying to issue a Writ of Certiorari, to call for the records of the
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Respondents in the notice in No. TIIC/BO/CUD/FU/LAO/2020-21 dated 22.01.2021 and quash the same as illegal.
For Petitioner : Mr. D.Senthil Kumaar For Respondents : Mr. K.Mahesh, Standing Counsel (for R1 & R2)
O R D E R
Heard Mr. D.Senthil Kumaar, Learned Counsel for the Petitioner and Mr. K.Mahesh, Learned Standing Counsel appearing for the Respondents and
perused the materials placed on record, apart from the pleadings of the parties.
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“3.
“3. The learned counsel for the petitioner submitted that due to
pandemic situation the entire business activity has been stopped and therefore he was not in a position to make the payments to the first respondent Corporation and therefore the Corporation has brought the petitioner's property for auction. He further submitted that the petitioner is taking bonafide efforts to sell one
of his property and to settle the dues to the respondent Corporation. To show his bonafide, he is also inclined to pay a sum of Rs.5 lakhs immediately within a period of two days from the date of receipt of a copy of this order and to make payment of another Rs.5 lakhs within a period of two weeks from today. He also undertakes to file an affidavit regarding the mode of payment in which he intends to settle the amount to the respondent Corporation. He also filed an affidavit dated 22.02.2021.
4. In view of the submissions made and affidavit filed by the
learned counsel for the petitioner, there shall be an order of interim stay as prayed for till 10.03.2021.”
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Though the Petitioner has undertaken in his affidavit dated 22.02.2021 that the house-site measuring an extent of 1.44 Acre comprised in Old S.R. No. 118, New S.R. No. 46/3, R.S. No. 46/3B1A in Thorapadi Village, Panruti Taluk, Cuddalore District belonging to him would be disposed so that he could repay the dues, nothing has been done in that regard till date. The COVID pandemic situation, which was cited as prevailing at the time of passing of that interim order, also no longer exists.
" 24. An order passed by a competent court - interim or final - has to be obeyed without any reservation. If such order is disobeyed or not complied with, the court may refuse the party violating such order to hear him on merits. We are no unmindful of the situation that refusal to hear a party to the proceeding on merits is a "drastic step" and such a serious penalty should not be imposed on him except in grave and extraordinary situations, but sometimes such an action is needed in the larger interest of
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justice when a party obtaining interim relief intentionally and deliberately flouts such order by not abiding by the terms and conditions on which a relief is granted by the court in his favour. "
Following the said dictum, in the light of the facts narrated supra as borne out from the record, it would not be possible to show any more indulgence to the Petitioner, which unwittingly delays the public dues owed by him to the Respondent.
In the result, the Writ Petition, which is devoid of merits, is dismissed. Consequently, the connected Miscellaneous Petition is closed. No costs.
14.12.2023
Index: Yes/No NCC: Yes/No
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Note: Issue order copy by 22.05.2024.
pal
To
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P.D. AUDIKESAVALU, J.
pal
W.P. No. 4251 of 2021
14.12.2023
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3 issues framed by the court
Whether this Court should discharge the interim stay granted on the auction of secured assets due to the petitioner's failure to comply with undertaking.
Whether the petitioner has demonstrated any error in the decision-making process leading to the impugned orders warranting interference.
Whether a petition defaulting in loan repayment is entitled to continued indulgence when cited circumstances no longer exist.
Colour shows how this judgement treated each authority
Prestige Lights Limited -vs- State Bank of IndiaRelied on¶38
Prestige Lights Limited -vs- State Bank of India [(2007) 8 SCC 449] · Who else cites this
M/s. Sakthivel Modern Rice Mill Represented by its Proprietor K.Sivakumar
The Managing Director, The Tamilnadu Industrial Investment Corporation Limited
The Branch Manager, The Tamilnadu Industrial Investment Corporation Limited, Cuddalore Branch
P.D. Audikesavalu
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
