Dismissed¶25

K.Palaniswami v. Administrator General and Official of Tamilnadu

Madras HC12 Jun 2026A/6269/2025

Case brief

AI extract

What is this about?

Madras High Court, A No. 6269 of 2025 in A No. 2483 of 2025, decided 12-06-2026 by S.M. Subramaniam J.: application by highest bidder (K. Palaniswami) for cancellation of AG&OT order dated 25.06.2025 and refund of forfeited earnest money deposit of Rs.3,00,000/- dismissed as not entertainable; auction of Chennai property held 12.05.2025, confirmed by High Court 09.06.2025; applicant defaulted in executing lease agreement, triggering forfeiture under auction notification conditions; no statute or precedent cited.

What did the court decide?

The applicant was fully aware of the terms and conditions published with the auction, participated in the auction held on 12.05.2025, became the highest bidder quoting a rent of Rs.1,02,000/- per month, and remitted Rs.3,00,000/- by demand draft as earnest money deposit. ¶20

K.Palaniswami Vs Administrator General and Official of Tamilnadu — Madras HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Dismissed

¶25

Issue for consideration

Whether the order dated 25.06.2025 passed by the Administrator General and Official Trustee (Dis.No.494/OTHC/2025) forfeiting the earnest money deposit of Rs.3,00,000/- should be cancelled and the advance amount refunded to the applicant with regard to item No.7 of the auction conducted on 12/05/2025.

¶11

Court's answer

¶20

Ratio / Principle

Since the High Court confirmed the auction on 09.06.2025 and the applicant failed to execute the lease agreement despite being called upon to do so, the non-execution of the tenancy agreement resulted in forfeiture of the earnest money deposit as per the condition stipulated in the auction notification; consequently the AG&OT forfeited the deposit.

¶21

Key takeaways

In view of the forfeiture under the auction notification conditions, the present application is not entertainable and is dismissed.ratio¶25

Detailed headnote1 paragraphs

Madras High Court (S.M. Subramaniam J.) dismisses A No. 6269 of 2025 (in A No. 2483 of 2025) filed by K. Palaniswami seeking cancellation of the Administrator General and Official Trustee's order dated 25.06.2025 (Dis.No.494/OTHC/2025) and refund of Rs.3,00,000/- advanced for item No.7 of the public auction conducted on 12.05.2025. The property at No.17, 3rd North Beach Road, Chennai (2079 sq.ft) was let out by public auction on 12.05.2025 following a newspaper notice dated 24.04.2025; the applicant became the highest bidder quoting rent of Rs.1,02,000/- per month and deposited Rs.3,00,000/- as earnest money by demand draft. After the High Court confirmed the auction on 09.06.2025 in A.No.2483 of 2025, the applicant failed to execute the lease agreement, and per the condition stipulated in the auction notification the earnest money deposit was forfeited by the AG&OT. Holding the application not entertainable, the court dismissed it; no refund was directed.

¶1

A No. 6269 of 2025

¶2

IN THE HIGH COURT OF JUDICATURE AT MADRAS

¶3

DATED: 12-06-2026

¶4

CORAM

¶5

THE HON'BLE MR JUSTICE S. M. SUBRAMANIAM A No. 6269 of 2025 IN A NO. 2483 OF 2025

¶6

K.Palaniswami S/o.Kaliappan, No.941/1, Alagapuram, Periyapudur, A.T.C.Nagar, Fair Lands, Salem 636 016.

¶7

..Applicant(s)

¶8

¶9

Administrator General and Official of Tamilnadu High Court Campus, Chennai 600 104

¶10

..Respondent(s)

¶11

Prayer in A No. 6269 of 2025 To cancel the order passed by the respondent vide Dis.No.494/OTHC/2025 dated 25/06/2025 in the above Application in A.No.2483 of 2025 and direct the respondent to refund the advance amount of Rs,3,00,000/- (Three Lakhs only) with regard to item No.7 as per auction conducted on 12/05/2025.

¶12

For Applicant(s):

¶13

Mr.G.Nirmal Krishnan

¶14

For Respondent(s): Ms.S.Sumathi, Administrator General & Official Trustee of TamilNadu for Respondent

¶15

__________ Page1 of 4

¶16

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

¶17

A No. 6269 of 2025

¶18

Order

¶19

The present application has been instituted to cancel the order passed by the Administrative General and Official Trustee dated 25.06.2025 and to direct the respondents to refund the advance amount of Rs.3,00,000/-

¶20

The fact remains that the property situated at No.17, 3^rd North Beach Road, Chennai measuring an extent of 2079 Sq.ft along with the other properties were let out through public auction on 12.05.2025. A public notice was published in newspapers on 24.04.2025 and opportunity was provided for inspection of the property from 25.04.2025 to 09.05.2025. The applicant was fully aware of the terms and conditions published and had participated in the auction on 12.05.2025 and became the highest bidder quoting a rent of Rs.1,02,000/- per month and Rs.3,00,000/- through demand draft was remitted as earnest money deposit.

¶21

The High Court confirmed the auction vide order dated 09.06.2025 in A.No.2483 of 2025. The applicant was called upon to execute the lease agreement, but he failed to do so. Non-execution of tenancy agreement resulted in forfeiture of earnest money deposit as per the condition stipulated in the auction notification. Consequently, the AG&OT has forfeited the

¶22

Page2 of 4

¶23

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

¶24

A No. 6269 of 2025

¶25

earnest money deposit amount. Thus, the present application is not entertainable and the same is dismissed.

¶26

12-06-2026

¶27

Index: Yes Speaking order Neutral Citation: Yes/No