Writ petitions challenging auction notices and sale were dismissed after the court found the respondents followed statutory procedures under the State Financial Corporations Act, noting the interim stay had lapsed and the sale confirmed.
The writ petitions stand dismissed. 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.
Writ Petition Nos.6750 and 6798 of 2005
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED :27.03.2023
CORAM :
THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM
Writ Petition Nos.6750 and 6798 of 2005
Prabhu Salt Industries, a Registered Partnership Firm having its Office at 24 B Sandhal Road, Tuticorin and represented by its Managing Partner C.D.Vijaya Rajan ... Petitioner in W.P.No.6750/2005
Raj Salt Industries, a Registered Partnership Firm having its Office at Municipal Lorry Nilayam V.E.Road, Tuticorin and represented by its Managing Partner C.Dharmaraj Nadar ... Petitioner in W.P.No.6798/2005
-Vs-
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Managing Partner Thiru R.Kosalai Pannaiyar, S/o.Ramasamy Nadar, residing at No.6, West Street, Moolakarai Village, Tiruchendur Taluk, Tuticorin District. … Respondents in both W.Ps.
Common Prayer : Writ Petitions under Article 226 of the Constitution of India praying for the issuance of a Writ of Certiorari, calling for the records relating to the notice of the 2nd respondent in TIIC/LAO/2004-05 dated 19.01.2005 and set aide the auction sale effected by the 2nd respondent on 01.02.2005 in favour of the third respondent.
For Petitioners : Mr.T.Srinivasaraghavan [in both W.Ps.] For Respondents : Mr.B.Balaji [in both W.Ps.] for Mr.A.Panneerchelvam [R1 and R2]
COMMON ORDER
The intimation regarding the auction to be conducted on 01.02.2005 in proceedings dated 19.01.2005 is sought to be quashed in these writ petitions.
salt production processing of salt and other connected activities. The petitioners are companies registered under the Indian Companies Act, 1913.
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Writ Petition Nos.6750 and 6798 of 2005
not been complied with by the petitioners i.e., this Court directed the petitioners to pay a sum of Rs.25,00,000/- (Rupees twenty five lakhs only) and the said amount has not been paid in the year 2005/2006. That apart, during the pendency of the writ petitions, the auction sale conducted was brought to the notice of this Court and the same was recorded on 15.06.2006 that the successful bidder in the auction sale paid the entire amount and the possession was handed over to the third respondent, who was the auction purchaser. Thus, this Court declined to grant an interim stay.
in case of default. In the present case, the respondents had followed the procedures as contemplated under Section 29 of the Act. They have issued show cause notice on 09.02.2011 and the petitioners filed a writ petition, which was dismissed. The petitioners failed to comply with the interim order passed by this Court and no payment has been made, subsequently, after the dismissal of the writ petition, the present impugned order has been passed in proceedings dated 19.01.2005 informing the petitioners that the auction scheduled to be conducted on 01.02.2005.
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This being the factum, the writ petitioners are not entitled to any relief in these writ petitions. Accordingly, these writ petitions stand dismissed. No costs.
27.03.2023
Index : Yes Speaking order: Yes Neutral Citation:Yes mp
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S.M.SUBRAMANIAM, J.
mp
Writ Petition Nos.6750 and 6798 of 2005
27.03.2023
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2 issues framed by the court
Whether a sale of mortgaged property necessitated by default under credit agreements was valid after adhering to the prescribed procedures under Section 29 of the State Financial Corporations Act, 195
Whether the writ petitions challenging the auction intimation were maintainable given the expiration of the interim stay and conduct of the auction.
Colour shows how this judgement treated each authority
Kerala Financial Corporation Vs. Vincent Paul and Anr.Referred¶27
2011 3 LW 114
Prabhu Salt Industries
Raj Salt Industries
The Tamil Nadu Industrial Investment Corporation Ltd.
The Branch Manager, The Tamil Nadu Industrial Investment Corporation Ltd.
M/s.Panniyar Salt Traders
S.M.Subramaniam
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
