RAJA AND RAJA INDUSTRIES Vs. BRANCH MANAGER, TAMIL NADU INDUSTRIAL INVESTMENT CORPORATION LTD , (TIIC), BUNGALOW MEDU, THENI, THENI DISTRICT AND M KATHIRESAN

JUDGEMENT

(1.) The petitioner is running an industry by name M/s. Raja & Raja Industries and claimed to be the Managing Partner. In this writ petition, he has challenged an advertisement issued by the first respondent Tamil Nadu Industrial Investment Corporation Ltd., (for short "TIIC), dated 15.12.2007 in respect of the public auction of his property which has listed as Sl.No.17 in the said advertisement. The auction that is to be conducted is in respect of a landed property in Pudur, West Street, Bodinaickanur in S.No.176/3 to the extent of 4485 sq.ft and 4320 sq.ft and a building and factory including bore-well, compound wall as well as the machinery that is found in the factory.

(2.) It is the case of the respondent TIIC that the petitioner borrowed a sum of Rs.9 lakhs as term loan and Rs.1.5 lakhs as soft loan on 20.10.1997 for the purpose of setting up of small scale industry for manufacturing neem oil cake for using under natural fertiliser. Ever since he borrowed, the petitioner has not repaid the loan. Subsequently, proceedings were initiated and he had moved this Court by filing several writ petitions and writ appeals. Even when one time settlement has been arrived, he has furnished a cheque which was dishonoured and therefore, the respondent brought the property for auction as the first respondent is empowered under Section 29 of the State Financial Corporations Act to bring such property for sale which has shown as the security towards the loan.

(3.) By virtue of the petitioner moving this Court, he has also obtained stay of confirmation and therefore, the property could not be sold. But however, the only grievance of the petitioner was that the first respondent has not fixed the upset price in respect of the properties for auction and undervaluing the property which is more than worth of Rs.60 lakhs, the first respondent has committed unfair in selling the property and therefore, they must be mandated to fix the upset price before they are bringing their properties for auction.