Madras High Court
M/S.Pachaiyammal Educational Trust vs Unknown on 25 October, 2024
C.S.No.51 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 25.10.2024
CORAM
THE HONOURABLE MR. JUSTICE RMT.TEEKAA RAMAN
C.S.No.51 of 2024
1.M/s.Pachaiyammal Educational Trust
Rep. by its Managing Trustee
Mr.S.Vengateswaran
S/o.Sekhar
Door No.9-B, Winding Driver Chinnasamy Street
Dharmapuri Town, Dharmapuri Taluk
Dharmapuri District
2.Rajeshwari Sekhar
D/o.Sekhar
Additional Trustee
M/s.Pachaiyammal Educational Trust
Door No.9-B, Winding Driver Chinnasamy Street
Dharmapuri Town, Dharmapuri Taluk
Dharmapuri District ... Plaintiff
Prayer: Civil Suit filed under Order IV Rule 1 of O.S. Rules r/w. Order VII
Rule 1 and Section 92(f) of CPC , to pass a Judgment and Decree:
a) to permit the Plaintiff to sell item No.1 to 29 of the properties
which are more fully described in the schedule hereunder to any
purchaser who may offer to purchase for the market price
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C.S.No.51 of 2024
b) to permit the Plaintiff to invest the sale proceeds in any nationalised
bank and to use the interest earned on the said fixed deposit for
meeting the expenses of maintaining and managing the Trust and also
for fulfilling the objects of the Society
For Plaintiff : Mr.N.Umapathi
For Auction Purchaser : Mr.M.R.Franklin
ORDER
The Plaint was filed under Order IV Rule 1 of O.S. Rules r/w. Order
VII Rule 1 and Section 92(f) of CPC , permitting the Plaintiff to sell item 1
to 29 of the properties (schedule property) to any purchase who offer the
purchase for the market price and permit the Plaintiff to invest the sale
consideration in any of the nationalised banks and use the interest earned on
the said fixed deposit for meeting expenses of maintaining and marketing
the managing the trust and for incidental relief.
2.The founder of the Plaintiff Trust is Mrs.Saradha Sekhar, vide Trust
deed Doc.No.74 of 1995 dated 30.10.1995, which was registered before the
Joint Sub Registrar – I, Dharmapuri. They purchased the property as per the
clauses in Trust Deed. After the death of Mrs.Saradha Sekhar, the present
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Trustees are come into force.
3.There is a supplementary deed dated 28.09.1998 registered as
Doc.No.74 of 1998 and another supplementary deed was executed on
11.07.2002 vide Doc. No.123 of 2002. The present Managing Trustee
Mr.S.Vengateshwaran, took charge on 11.08.2018 and as per supplementary
deed dated 13.04.2022, at present the board of Trustees are as follows:
Mr.S.Vengateshwaran - Managing Trustee with life time
Mr.M.G.Sekhar - Additional Trustee
Mrs.S.Rajeshwari - Additional Trustee
Mr.Pradeep - Additional Trustee
4.The Trust is the absolute owner of the property. [Item Nos.1 to 29,
herein after referred as 'schedule property']. As per the Plaint, the market
value of the property is Rs.12,34,14,000/-. The schedule of the property was
purchased in the name of the Trust by sale deed on the following dates,
29.11.2001, 03.12.2001 (3 Nos.), 06.12.2001, 12.12.2001 (2 Nos.),
3.12.2001, 12.12.2001, 27.12.2001 (2 Nos.), 31.12.2001 (5 Nos.),
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27.02.2002, 28.03.2002, 04.04.2002, 05.04.2002, 19.04.2002, 04.12.2002 (2
Nos.), 09.07.2003 (3 Nos.), 16.07.2003, 27.08.2003 & 02.09.2003.
5.For the purpose of maintenance of the Colleges run by the Trust,
they seek permission to sell the property. The Plaint is one under Section
92(f) of CPC, and therefore, necessary paper publication has been effected.
Thereafter, the Registry has invited tender from the prospective purchasers
and received seven sealed covers and the matter was posted before this
Court on 22.10.2024. A detailed order was passed by this Court as to the
opening of the sealed cover and award of the bid in favour of one
Mr.D.C.Elangovan for a sum of Rs.16,00,00,000/-, which is more and over
than the Plaint value as projected by the Plaintiff assumes significance.
6.Pursuant to the order dated 22.10.2024, wherein this Court has
declared one Mr.D.C.Elangovan as successful bidder and his bid offer was
accepted provisionally. In order to find out whether he has financial
capacity to comply with the bid as quoted in the bid letter, this Court has
directed the successful bidder, who was provisionally selected viz.,
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Mr.D.C.Elangovan to produce 25% of bid amount. Accordingly, today
(25.10.2024), M.R.Franklin, learned counsel, who filed vakkalat on behalf
of the successful bidder has produced five Demand Drafts drawn in the
name of M/s.Pachaiyammal Educational Trust, Dharmapuri viz., Plaintiff to
the tune of Rs.80,00,000/- each (totally Rs.4,00,00,000/-). Since the original
Demand Drafts are produced before this Court, the same is hereby recorded,
then returned to the learned counsel for the successful bidder, Copy of the
same was received by way of memo and kept in file.
7.Having satisfied with the financial capacity of the said successful
bidder, whose initial selection was provisional is hereby made absolute.
This Court is satisfied with the financial capacity of the said person to
comply with the sale consideration as quoted by him in the said bid amount
of Rs.16,00,00,000/-.
8.Learned counsel for the successful bidder has also produced another
Demand Draft for a sum of Rs.10,00,000/- in favour of the Registrar
General, High Court, Madras vide DD.No.594878, dated 24.10.2024 drawn
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in Indian Bank, Dharmapuri Branch as directed by this Court on the earlier
order dated 22.10.2024. Accordingly, the Registrar General of this Corut is
directed to keep the said demand draft and return the previous demand draft
which was mentioned in the earlier order dated 22.10.2024, after taking
photocopy alongwith attestation of the learned counsel. The photocopy of
the Demand Draft for a sum of Rs.10,00,000/- drawn in favour of the
Registrar General, High Court, Madras vide DD.No.594878, dated
24.10.2024 at Indian Bank, Dharmapuri Branch shall be annexed with the
order and kept in file.
9.The Plaintiff Trust is hereby directed to execute the sale deed for
the sale consideration of Rs.16,00,00,000/- within a period of two weeks,
failing which, the Registry shall execute the sale deed in their favour.
10.Since the original Demand Drafts are drawn in the name of the
Plaintiff Trust, this Court directs the Plaintiff viz., Managing Director of the
Trust viz., Mr.S.Vengateshwaran, Mr.M.G.Sekhar, Additional Trustee,
Mrs.S.Rajeshwari, Additional Trustee, Mr.Pradeep, Additional Trustee to
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be present before this Court on 28.10.2024 to receive the Demand Drafts
which are drawn in the name of the Plaintiff/Trust. The successful bidder is
also directed to be present before this Court for handing over the Demand
Drafts, to complete the part of sale consideration, and thereafter balance of
sale consideration is to be paid and the sale deed to be executed as stipulated
above in paragraph No.9.
11.The Management Trustee and Additional Trustees have filed this
Suit based upon the clause in the Trust deed, there are two more Trustees as
per paragraph 4 of the Plaint and hence, since the sale is effected through the
Court following affidavit of undertaking to be filed by the Plaintiff.
1.Joint affidavit to be filed by all the Trustees for confirmation of the
sale of the trust property on Monday (28.10.2024) and they have to
express that they have no objection for the sale and the said amount to
the extent of Rs.16,00,00,000/- as fixed by this Court as confirmed in
the earlier portion of this order.
2.In the said affidavit the trustees shall make an undertaking that they
are concurrent with the bid amount and they will execute the sale
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deed without any delay and undertake that there is no attachment,
mortgage, lease or civil proceedings, revenue proceedings viz.,
income tax proceedings pending against this property.
3.The Trustees of Plaintiff shall give undertaking that there is no
proceedings pending or initiated under Section 37(B) of the Tamil
Nadu Land Reforms (Fixation of Ceiling on Land) Act by the
competent authority and schedule property is free from encumbrance.
4.Undertaking to the effect that no proceedings under Foreign
Exchange Management Act, or Foreign Exchange Regulation Act or
Prevention of money laundering Act or Income Tax Act is pending
against this property shallalso be given.
5.Affidavit by all the Trustees either jointly or individually to the
above effect to be filed before this Court on 28.10.2024.
12.The Civil Suit stands decreed accordingly. No costs.
13For appearance of the Plaintiff/all the Trustees and successful
bidder before this Court to receive the Demand Draft for the amount of
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Rs.4,00,00,000/- drawn by the successfully bidder as confirmed by this
Court, post the matter on 28.10.2024.
25.10.2024
sai
Note: Issue order copy by 28.10.2024.
Index : Yes/No
Neutral citation : Yes/No
Speaking Order/Non-Speaking Order
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RMT.TEEKAA RAMAN, J.
sai
Dated: 28.10.2024
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