V KARUPPAN Vs. TAMIL NADU INDUSTRIAL INVESTMENT

JUDGEMENT

(1.) SINCE the issue involved is common in both the writ petitions, they are taken up together and disposed of by a common order.

(2.) W.P.No.3531 of 2009 has been filed for a Writ of Mandamus to direct the second respondent, the Tamil Nadu Industrial Investment Corporation Limited (hereinafter referred to as 'the TIIC') to receive the petitioner's due amount and to release the Karuppan Lodge in T.S.No.1506 situated at Vadakadu Road, Alangudi Post, Pudukkottai District without encumbrance.

(3.) THE TIIC has filed separate counter affidavits in both the writ petitions. It is stated that the petitioner had paid only a sum of Rs.9,23,014/- till 13.01.1998 and not Rs.13,00,000/- as stated by the petitioner and the cheques issued by him had returned and unpaid. THE request made by the petitioner on 12.12.1998 for reschedulement of loan was rejected by their letter dated 09.01.1989. It is further submitted that the physical possession of the property was taken on 06.01.1998 under Section 29 of the State Financial Corporations Act and after giving wide publicity the property was brought for auction on 17.02.1908. THEre were 13 persons who participated in the public auction and the third respondent is one among them. Two suits were filed by the petitioner in O.S.Nos.3608, 4657 of 1998 before the City Civil Court, Chennai. It is further stated that, the fact that the suits were filed by the petitioner and it is proved that the petitioner was available in Chennai and his allegation that he was in Malaysia is purely an afterthought. Both the suits were filed challenging the auction sale. THE petitioner had withdrawn the injunction application in O.S.No.3608 of 1998 and in the meantime, the respondents had executed the sale deed 22.07.1998 in favour of the third respondent. It is thereafter on 25.07.1998, the petitioner had filed another suit in O.S.No.4657 of 1998 before the VI City Civil Court, Chennai stating that the TIIC accepted the bid amount belatedly. THE City Civil Court by an order dated 22.09.2009 in I.A.No.15115 of 1999 in O.S.No.4657 of 1998 directed the respondent Corporation not to disburse the sale proceeds. It is pointed out that the sale proceeds of Rs.46,01,000/- had been adjusted and a sum of Rs.21,53,267.45/- being the amount recoverable by the TIIC and the remaining amount has been deposited with the competent court. It is further stated that W.P.No.4206 of 1998 was filed by the petitioner's wife and minor children but the same was withdrawn on 21.07.1998. THErefore, it is submitted that the petitioner suppressing all the above mentioned facts has filed the present writ petition. As regards belated remittance of the sale price by the third respondent, it is submitted by the TIIC that they have recovered interest for the period of 33 days and condone the delay in payment. As regards the valuation of the property, it is submitted that as per the valuation report from its Panel Valuer of TIIC, dated 11.02.1998 the market value of the property is only Rs.48,96,863.15 and the guideline value is Rs.44,79,358.45 and the property was sold for a sum of Rs.46,01,000/-. As regards the valuation of the furniture, it is submitted that as per the valuation reported obtained by the respondent from its panel valuer, the value of the furnitures and fixtures are only Rs.2.50 lakhs. It is further submitted that the present writ petition has been filed after lapse of 11 years from the completion of the sale suppressing about the various material facts and the same is liable to be dismissed.