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Madras High CourtWP/6658/2022disposed of with direction

M/S.Sri Srinivasa Engineering v. State Of Tamil Nadu

2026-06-08Honourable Mr Justice M.Dhandapani5 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 08-06-2026

CORAM

THE HON'BLE MR JUSTICE M.DHANDAPANI and W.M.P.No.6734 of 2020 M/s.Sri Srinivasa Engineering Rep by its Prorietrix, V.Jayasudha, New No.68, Old No.40, Bharati Puram Main Road, Shenoy Nagar, Chennai- 600 030.

..Petitioner(s) Vs

1. State of Tamil Nadu Rep by its Secretary to Government, Industries Department, Fort St. George, Chennai- 600 009.

2. State Industries Promotion Corporation of Tamil Nadu Limited, Rep. by its Managing Director, 19-A, Rukmani Lakshmipathy Road, Egmore, Chennai- 600 008.

..Respondent(s) Prayer: Petition filed under Article 226 of the Constitution of India praying for issuance of a Writ of Certiorarified Mandamus calling for the records from the 2nd Respondent relating to the order bearing No.O.O.43, dated 07.10.2020 and the consequential Notice - Order bearing No.P-II / VV / 46 / Sri Srinivasa Engg / 2015 dated 18.02.2022 and quash the same and consequently the direct the 2nd Respondent to increase the period of project implementation from 30 months to 60 months as per the order of the 2nd Respondent bearing O.O.No.37, dated 04.09.2020.

For Petitioner(s):

M/s.S.Ayyathurai For Respondent(s):

Mr.M.Sivavarthanan, Government Counsel for R-1

ORDER

The present Writ Petition has been filed challenging the orders passed by the 2nd respondent in and by which, the penalty had been imposed for nonimplementation of the project by the petitioner in the subject property as per the lease deed dated 04.01.2019.

2. The case of the petitioner is that Plot No.G-112/1 measuring to an extent of 2.00 acres at SIPCOT Industrial Park, Vallam Vadagal was allotted to the petitioner under an Allotment Order dated 28.08.2018 on a lease basis for period of 99 years. Pursuant thereto, a Lease Deed was executed between the petitioner and the 2nd respondent on 04.01.2019. Upon payment of Rs.2,10,00,000/- by the petitioner towards the cost of plot, possession of the property was handed over to the petitioner. However, owing to the outbreak of COVID 19 pandemic and the consequent restrictions imposed by the Government, the petitioner was unable to commence and carry out construction activities on the subject property. After the restrictions were lifted, the petitioner submitted a representation in the year 2022 explaining its inability to implement the project within the stipulated period and sought an extension of time. Thereafter, the impugned notice dated 18.02.2022 was issued by the 2nd

respondent demanding a penalty of Rs.20,09,127/- inclusive of GST of Rs.3,06,000/- along with a processing fee of Rs.11,800/-. Aggrieved by the said demand, the petitioner had come forward with the present Writ Petition.

3. Learned counsel appearing for the petitioner submitted that the subject property had been leased out to the petitioner for a period of 99 years pursuant to the allotment made on 28.08.2018 and the lease deed was executed on 04.01.2019. However, on account of the non-implementation of the project, the impugned order dated 07.10.2020 and the consequential notice dated 18.02.2022 were issued levying penalty for extension of time in respect of the unutilized land and directing surrender of the plot. It is however, contended that the petitioner intends to complete the project in terms of the lease deed and is ready and willing to remit the demand amount together with the Processing fee within the reasonable time as may be fixed by this Court.

4. In view of the aforesaid submissions and considering the willingness of the petitioner to remit the demand amount of Rs.20,09,127/- along with the processing fee of Rs.11,800/- , the petitioner is directed to remit the said amounts by way of demand draft in favour of the 2nd respondent within a period of six weeks from the date of receipt of a copy of this order. Upon such remittance, the respondents shall accept the same and proceed further in accordance with the lease deed dated 04.01.2019. In the event of any default on

the part of the petitioner in making the aforesaid payments within the period as stipulated by this Court, the petitioner shall surrender the land to the respondents, who shall thereafter be at liberty to utilize the land for industrial purposes.

5. The Writ Petition stands disposed of with the aforesaid direction. There shall be no order as to costs. Consequently, connected Miscellaneous Petition stands closed.

08-06-2026 Index: Yes/No Speaking/Non-speaking order NHS To 1.State of Tamil Nadu Rep by its Secretary to Government, Industries Department, Fort St. George, Chennai- 600 009.

2. State Industries Promotion Corporation of Tamil Nadu Limited, Rep. by its Managing Director, 19-A, Rukmani Lakshmipathy Road, Egmore, Chennai- 600 008.

M.DHANDAPANI, J.

NHS and W.M.P.No.6734 of 2020 08-06-2026