JAGAJOTHI SPINNING MILLS Vs. V JAYACHANDRAN

JUDGEMENT

(1.) The writ petition, in W.P. No. 18709 of 2010, has been filed praying for a Writ of Certiorarified Mandamus, to quash the auction sale held on 31.5.2010, in respect of the immovable properties mortgaged to the Tamilnadu Industrial Investment Corporation Limited, by way of a mortgage deed, on 6.5.1996.

(2.) It has been stated that the first Petitioner spinning mill had started in the year, 1980. A sum of rupees 90 lakhs had been borrowed from the first and the second Respondents, for the purpose of purchasing machineries, in the year, 1995. However, due to certain disputes that had arisen amongst the partners of the Mill it had been closed in the year, 2004. In the said circumstances, the mortgage loan, availed from the first and the second Respondents, had become a non performing asset.

(3.) It has been further stated that the first and the second Respondents had brought the mortgaged property for public auction, on 1.10.2009. In the said public auction V.Jayachandran and V.Vijaya, the son and the wife of the fourth Petitioner, respectively, were the highest bidders. Accordingly, they had deposited a sum Rs. 30.60 lakhs. However, the first and the second Respondents had refused to receive the balance amount from the successful bidders, with ulterior motives. Instead, the first and the second Respondents had brought the properties in question for sale, by way of a fresh public auction, held on 31.5.2010, by publishing an auction notice in the Tamil Daily 'Thina Thanthi', on 18.5.2010, pursuant to the order passed by the second Respondent, dated 31.3.2010.