Dismissed¶36

Mr.K.Paneer Selvam v. The Official Trustee of Tamil Nadu

Madras HC10 Jul 2026REV.APLO/11/2025

Case brief

AI extract

What is this about?

Review Application dismissed — Madras HC, S.M. Subramaniam J., 10-07-2026; K.Paneer Selvam vs Official Trustee of Tamil Nadu (Maligai Merchants Charities); lease expired 31.12.2022; erstwhile tenant paying enhanced rent under discretionary order; ~4 years occupation without lease; grant/renewal of Trust property lease without public auction prejudicial to Trust interests; Court discretion not to be exercised to grant/renew lease without public auction; AG and OT directed to evict existing tenant and conduct public auction; A.No.606 of 2023 in C.S.No.274 of 1899.

What did the court decide?

No relief to the Applicant; with the above observations and directions, the Review Application was dismissed, and directions were issued to the learned AG and OT to evict the existing tenant and conduct a public auction. ¶36

Mr.K.Paneer Selvam Vs The Official Trustee of Tamil Nadu — Madras HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the Review Application seeking review of the Court's order dated 06.03.2025 passed in A.No.606 of 2023 in C.S.No.274 of 1899 (permitting the erstwhile tenant to pay enhanced rent after expiry of the lease) should be granted. +1 more

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Court's answer

The order under review need not be reviewed further, since the lease period expired on 31.12.2022 itself and the Applicant/Lessee has been continuing in the subject property for about 4 years without any lease under the protection of the discretionary order to pay enhanced rent.

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Ratio / Principle

The relief granted by the Court cannot be allowed to continue in perpetuity in respect of the subject property, which vests with AG and OT and is leased out.

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Key takeaways

Entertaining applications for grant and renewal of lease of Trust property without conducting public auction causes prejudice to the interest of the Trust; the Court, in exercise of its powers of discretion, is not expected to grant or renew lease without conducting public auction by following the procedures.ratio¶27
In the absence of a lease, any further order would prejudice the interest of the Trust properties; therefore the learned AG and OT has to initiate all appropriate action to evict the existing tenant and conduct a public auction so as to ensure that Trust properties are protected and leased out in the manner known to law.ratio¶35

Detailed headnote1 paragraphs

Madras High Court (S.M. Subramaniam, J.) — REV.APLO No.11 of 2025 in A.No.606 of 2023 in C.S.No.274 of 1899, decided 10-07-2026: Review Application seeking review of the Court's order dated 06.03.2025 — passed after expiry of the lease on 31.12.2022 — which had permitted the erstwhile tenant to pay enhanced rent, is dismissed. The Court holds that such relief cannot continue in perpetuity over property vesting with the Administrator General (AG) and Official Trustee (OT); that entertaining grant/renewal of lease of Trust property without public auction prejudices Trust interests; and that the Court, exercising discretion, is not expected to grant or renew lease without conducting a public auction by following the procedures. Directions issued to the learned AG and OT to initiate all appropriate action to evict the existing tenant and conduct a public auction so that Trust properties are protected and leased out in the manner known to law.

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REV.APLO.No. 11 of 2025

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 10-07-2026

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CORAM

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THE HON'BLE MR.JUSTICE S.M.SUBRAMANIAM

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REV.APLO No.11 of 2025 IN A.No.606 OF 2023

K.Paneer Selvam

… Applicant

-vs-

The Official Trustee of Tamil Nadu Rep. by Trustee Estate of Maligai Merchants Charities, City Civil Court Building, Chennai 600 104.

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… Respondent

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REV.APLO No. 11 of 2025

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Prayer: To review the Order dated 06/03/2025 passed in A.No.606 of 2023 in C.S.No.274 of 1899, on the file of this Hon’ble Court.

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For Applicant: Ms.R.V.Gayatri For M/s.P.B. Ramanujam Associates

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For Respondent:

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O R D E R

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The present Review Application has been instituted to review

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the order of this Court dated 06.03.2025 passed in A.No.606 of 2023 in C.S.No.274 of 1899.

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The order sought to be reviewed was passed on

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06.03.2025 after expiry of lease period, i.e., on 31.12.2022.

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Discretionary order has been passed by this Court, permitting erstwhile tenant to pay enhanced rent. The said order need not be reviewed any

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

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REV.APLO.No. 11 of 2025

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further, since lease period expired on 31.12.2022 itself. Applicant / Lessee is continuing in the subject property for about 4 years without any lease under the protection of discretionary order passed by this Court to pay enhanced rent.

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The relief granted by this Court cannot be allowed to continue in perpetuity in respect of subject property, which vests with AG and OT and leased out. Lease was extended by filing applications by Applicant and by virtue of Court orders. Unfortunately, no public auction was conducted for a long period and lease was extended based on individual application, which is not desirable.

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Practice of entertaining application for grant of lease and renewal of lease without conducting public auction would undoubtedly cause prejudice to the interest of Trust property. Trust properties are to be dealt with in transparency manner, so as to protect the interest of Trust and to achieve its objectives. Court, in exercise of powers of discretion, is not expected to grant lease or renew lease without conducting public auction, by following the procedures.

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Applicant appears to be long time occupant and lease

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period expired on 31.12.2022. In the absence of lease, any further order

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

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REV.APLO.No. 11 of 2025

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would result in causing prejudice to the interest of Trust properties.

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Therefore, this Court is of the view that learned AG and OT has to

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initiate all appropriate action to evict the existing tenant and conduct public auction so as to ensure that Trust properties are protected and leased out in the manner known to law.

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