SCM SILKS P. LTD. Vs. MEMBER SECRETARY

JUDGEMENT

(1.) This writ petition challenges the validity of the proceedings of the 2nd respondent dated 30.05.2017 whereby the 5th respondent was directed to take action to cancel the patta issued in the name of the petitioner company and get the patta effected in the name of the 11th respondent trust in respect of lands sold out to the petitioner and the consequential proceedings of the 5th respondent dated 01.06.2018 whereby the 6th respondent was directed to take action as instructed by the 2nd respondent in and by his proceedings dated 30.05.2017.

(2.) The brief facts leading to the filing of the writ petition are as follows:- The 11th respondent herein is a public charitable trust, known as "Sri Ramachandra Educational and Health Trust" [hereinafter called as the trust]. In the year 1985, the trust got permission from the State Government to establish a private self-financing medical college and hospital under the name and style of "Sri Ramachandra Medical College Hospital and Research Institute. The State Government also granted permission to the trust to open the medical College in G.O.Ms.No.1196, Health and Family Welfare Department, dated 24.07.1985. Being a trust, they sought permission to hold and acquire lands measuring to an extent of 259.34 Acres of land in various survey numbers situated in and around Porur in Kancheepuram District for the proposed medical college and hospital under Section 37-B of The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 [hereinafter will be referred to in short as 'the Land Reforms Act']. The Government by its order in G.O.(Ms) No.1959, Revenue Department, dated 17.12.1987 granted permission to the trust under Section 37-B of the Land Reforms Act to acquire and hold approximately 259 acres of land.

(3.) It is stated by the petitioner that thereafter, the trust had established a self financing medical college in certain extent of land. Subsequently, the trust had sold away an extent of 42.70 Ares of land to one M/s.Sterling Computers Limited and its nominees under 19 different sale deeds from 02.03.1990 to 17.05.1990. After purchase of the property, M/s.Sterling Computers applied to the Government for re-classification of the lands from Agricultural Use Zone to Primary Residential Use Zone. The Government, after having considered the request made by M/s.Sterling Computers, by an order in G.O.(Ms.)No.742, dated 29.04.1991, re-classified the lands from Agricultural Use Zone to Primary Residential Use Zone. Subsequently, M/s.Sterling Computers had also obtained planning permission for developing the land. M/s.Sterling Computers, later on renamed as "Siva Industries and Holdings Limited". The said Siva Industries and Holdings Limited [hereinafter referred to as "the company"] had availed financial assistance from the 9th respondent - Canara Bank [hereinafter will be referred to as "the Bank"] by mortgaging its properties measuring an extent of 40.57 Acres, which were purchased from the trust. Thereafter, the company had committed default in repayment of loan availed by it from the bank and as such, at the instance of the bank, a proceedings was initiated under the provisions of The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (hereinafter will be referred to as "the SARFAESI Act) and a notice under Section 13(4) of the SARFAESI Act was also issued to the mortgagor company. Subsequently, the secured debt was assigned in favour of the 8th respondent [hereinafter referred to as "the assignor"] and certain extent of the mortgaged properties were sold under private negotiations. The petitioner had purchased an extent of 5 Acres of land from the 8th respondent under a private treaty which is in dispute now.