P.S.Sengottuvelu v. S.V.Sivakumar
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 20.04.2016
CORAM
THE HONOURABLE MR. JUSTICE P.R.SHIVAKUMAR C.R.P (PD) Nos.4357, 4358 of 2011 and C.R.P.No.1286 of 2016 & M.P.Nos.1 + 1 of 2011 & C.M.P.Nos.5398 and 6556 of 2016 C.R.P.No.4357 of 2011 P.S.Sengottuvelu ... Petitioner vs.
1.S.V.Sivakumar 2.N.Jayabalamurugan 3.M.Mithusamy 4.V.Palraj 5.N.Ponnusamy ... Respondents Administrators of the Estate of Late P.S.Shanmugam Chamundi Super Market Complex Omalur Main Road Civil Revision Petition filed under Article 227 of the Constitution of India against the order dated 06.07.2011 made in I.A.No.103 of 2009 in O.S.No.239 of 1998 on the file of the Principal Subordinate Judge, Salem.
For Petitioner : Mr.A.K.Mylsamy & Associates For Respondent : Mr.T.R.Rajagopalan Senior Counsel for R1 to R5
C.R.P.No.4358 of 2011 1.P.S.Sengottuvelu 2.S.Indira ... Petitioners vs.
1.S.V.Sivakumar 2.M.Muthusamy 3.N.Jayabalamurugan 4.V.Palraj 5.N.Ponnusamy ... Respondents Administrators of the Estate of Late P.S.Shanmugam Chamundi Super Market Complex Omalur Main Road 6.P.Tamilmani 7.Mrs.M.Punitha 8.K.G.Sampath 9.D.Ramasamy 10.R.Daniel 11.Elayyammal 12.G.P.Venkatesan 13.Hemalatha 14.K.Abirami 15.S.Balasubramanian 16.K.Viswanathan 17.S.P.Ramanathan 18.R.Kaliammal 19.N.Muruganadan 20.C.Karunakaran 21.S.Chinnannan 22.S.Palaniammal 23.Rajeswari
24.Minor Arun 25.Minor Sowmiya 26.S.M.Hemalatha 27.Muthukumar 28.Rajesekaran 29.K.R.S.Chandrasekaran 30.K.Bharathi 31.Sampooram 32.Pavayammal 33.Kaliannan 34.Neelambal 35.Minor Pavithra 36.Minor Preetheeba 37.N.R.Subramanian 38.Muthulakshmi 39.Kupammal 40.B.Selvi @ Tamilselvi 41.R.Amsaveni 42.V.Nallappan 43.The Depositors Association of Chamundi Group of Finance Concerns rep. By its Authorized Representatives 1.S.A.Padmanaban 2.Srinivasan 3.Senthil, 4.Thangavelu 44.P.G.Mahavishnu 45.Lakshmi 46.Arul 47.Nirmala 48.Nallayammal 49.C.Sampath Kumar 50.Rajarathinam 51.Rajam 52.N.Ravishankar 53.P.Thirunavukarasu 54.R.Manivannan 55.C.Chitra 56.P.Janagan 57.E.Annapoorani
58.E.Malleswaran 59.S.P.Ramachandran 60.Tmt.Baby Yasodha 61.Ayshwaria Credits 62.K.Raju 63.Tmt.M.Ambujam 64.K.Subramanian 65.S.Chandra 66.S.Mohankumar 67.K.Kathirvelu 68.K.Palaniammal 69.R.Malathi 70.Minor Hema, D/o.Ravindran Civil Revision Petition filed under Article 227 of the Constitution of India against the order dated 06.07.2011 made in I.A.No.103 of 2009 in O.S.No.239 of 1998 on the file of the Principal Subordinate Judge, Salem.
For Petitioner : Mr.A.K.Mylsamy & Associates For Respondent : Mr.T.R.Rajagopalan Senior Counsel for R1 to R5 C.R.P.No.1286 of 2016 Bhavani Devi .. Petitioner Vs.
1.P.Tamilmani 2.Mrs.M.Punitha 3.K.G.Sampath
4.D.Ramasamy 5.R.Daniel 6.Elayammal 7.G.P.Venkatesan 8.Hemalatha 9.K.Abirami 10.S.Balasubramnian 11.R.Viswanathan 12.S.P.Ramanathan 13.R.Kaliammal 14.N.Muruganandan 15.C.Karunakaran 16.S.Chinnannam 17.S.Palaniammal 18.Rajeswari 19.Minor Arun 20.Minor Sowmiya 21.S.M.Hemalatha 22.Muthukumar 23.Rajasekaran 24.K.R.S.Chandrasekaran 25.K.Bharathi 26.Sampoornam 27.Pavayammal 28.Kalilannan 29.Neelambal 30.Minor Pavithra 31.Minor Pratheeba
32.N.R.Subramanian 33.Muthulakshmi 34.Kuppammal 35.B.Selvi @ Tamil Selvi 36.R.Amsaveni 37.V.Nallappan 38.The Depositors Association of Chamundi Group of Finance Concerns rep. By its Authorized Representatives 1.S.A.Padmanaban 2.Srinivasan 3.Senthil 4.Thangaveli 39.P.G.Mahavishnu 40.Lakshmi 41.Arul 42.Nirmala 43.Nallayammal @ Pappu 44.C.Sampath Kumar 45.Rajarathinam (Died) 46.Rajam 47.N.Ravishankar 48.P.Thirunavukkarasu 49.R.Manivannan 50.C.Chitra 51.P.Janagan 52.P.S.Sengottuvelu 53.S.Indira
54.E.Annapoorani 55.S.P.Ramachandran 56.Tmt.Baby Yasodha 57.Ayshwaria Credits, rep. By its Partner Santha having its office at Thiruchengode Road Namakkal 58.K.Raju 59.Tmt.M.Ambujam 60.K.Subramanian 61.S.Chandra 62.S.Mohankumar 63.K.Kathirvelu 64.K.Palaniammal 65.R.Malathi 66.Minor Hema 67.Rukmaniammal 68.Priyadharsini 69.Chamundeeswari 70.S.Kannan 71.Chinnammal 72.Sellammal 73.Sarswathi 74.S.Saravanan 75.S.Sakthivel 76.Chinna pappa 77.Agilandeswari 78.Senthilkumar
79.Siddarthan 80.Senthilkkumar 81.Renuka 82.M.Ravi 83.Vishnu 84.Siddan 85.S.V.Sivakumar 86.M.Muthusamy 87.N.Jayabala Murugan 88.V.Palraj 89.N.Ponnusamy Civil Revision Petition filed under Article 227 of the Constitution of India against the preliminary decree dated 08.12.1988 passed in O.S.No.239 of 1988 by the Hon'ble Principal Sub-Judge, Salem. For Petitioner : Mr.K.M.Vijayan Senior Counsel for Mr.C.M.Krishnakumar For Respondent : Mr.V.Sekar COMMON ORDER In continuation of the order of this Court dated 13.04.2016, this Court heard further submissions and passes the following order: Today, the administrators have filed a memo containing details as to the calculation of the amount payable to Bhavani Devi, the
secured creditor, who has filed C.R.P.No.1286 of 2016. The amount thus arrived at is Rs.1,68,59,096/-. A crossed cheque issued by the Administrators bearing Cheque No.006647 dated 19.04.2016 for the above said amount payable to Bhavani Devi has been handed over to the learned counsel for the said secured creditor Bhavani Devi in full discharge of her claim, being the amount payable as per the Arbitration Award minus 10% TDS on the interest portion of the claim. The administrators shall issue necessary Form 16 for the amount deducted as TDS. The said amount has been arrived at in accordance with the Arbitration Award. In view of the said payment by way of cheque, Mr.K.M.
Vijayan, learned senior counsel, on instructions from the instructing counsel, submits that the secured creditor Bhavani Devi accepts the same subject to realization, in full quit of her claim and gives up her claim in respect of the security. The learned senior counsel also gives an undertaking on behalf of the secured creditor Bhavani Devi that all claims made by her, including the proceedings initiated before the criminal Courts under Section 138 of the Negotiable Instruments Act based on the dishonoured cheques against P.S.Sengottuvel, S.Indira and E.Annapurini (defendants 1 to 3 in the suit O.S.No.239 of 1998 in which the administrators were appointed) would be withdrawn.
secured creditor shall have no other claim in respect of the transactions concerned in the suit and also the Arbitration Award. The above said undertaking is recorded and C.R.P.No.1286 of 2016 is dismissed as not pressed.
2. Chamundi Finance and Investments Groups Financial Depositors, Creditors' Protection of Interest Welfare Association, with Registration No.7 of 2012, has come forward with C.M.P.No.5398 of 2016 to get it impleaded as a party respondent in C.R.P (PD) No.4358 of 2011. Mr.V.Srikanth, learned counsel for the petitioner in the impleading petition submits that the members of the said association want to get impleaded as they are prepared to accept the payment of the principal amount alone. Mr.T.R.Rajagopalan, learned senior counsel appearing for the respondents 1 to 4 in C.R.P (PD) No.4358 of 2011, namely S.V.Sivakumar, M.Muthusamy, N.Jayabalamurugan and V.Palraj, submits that the Association need not be made a party and the creditors, who are members of the Association, may make their claim before the Administrators either through the Association or individually and that when such claims are made, they will be taken into consideration for the disbursement of the amount available with the administrators. In view of the above said submission made on
behalf of the respondents 1 to 4 in C.R.P.No.4358 of 2011, C.M.P.No.5398 of 2016 is dismissed as unnecessary.
3. So far as the disbursement of the balance amount available with the administrators is concerned, the list of creditors already supplied by the administrators shall be discussed by the administrators co-opting the revision petitioners in C.R.P.No.4358 of 2011, namely P.S.Sengottuvelu and S.Indira and after such discussion, two lists one containing names of the undisputed list of creditors and the second list containing the names of the creditors regarding which there may be a dispute. So far as the second list containing the names of the disputed creditors and the amounts noted against them, specific orders of the Sub-Court shall be obtained and the Administrators shall act accordingly.
Notice in appropriate form to the creditors shall be given and in case some of the creditors come forward to receive the principal amount in fill quit, they shall be paid the principal amount at the first instance after getting necessary undertaking from them giving up their claim regarding the interest and the same should be done after getting necessary orders from the Sub-Court.
be made to pay the principal to all the creditors at the first instance and if any amount is left in the hands of the administrators after paying the principal amount to the creditors, the same shall be utilized for payment of interest pro rata to the creditors who do not give up their claim for interest. The same should also be done after obtaining permission from the Court below. Sufficient time for making such claims shall be given to the creditors. If at all the Administrators face any claim for Capital Gains Tax, it can be contested or funds can be raised by the sale of the other properties. C.R.P.No.4358 of 2011 is disposed of accordingly.
4. Respondents 1 to 4 in C.R.P.No.4357 of 2011 through their senior counsel, submit that the residential portion regarding which C.R.P.No.4357 of 2011 has been filed by P.Sengottuvelu will not be brought for sale till the disbursement of the amount in the hands of the Administrators. In view of the said submission made on behalf of respondents 1 to 4, this Court is of the view that no order except recording the undertaking is necessary in C.R.P.No.4357 of 2011. In the result, C.R.P.No.1286 of 2016 is dismissed as not pressed. C.R.P.No.4357 of 2011 and C.R.P.No.4358 of 2011 are disposed of
with the directions issued in paragraph 3 of this order and the undertaking recorded in paragraph 4 of this order. No costs. Consequently, the connected miscellaneous petitions are closed. 20.04.2016 Index: Yes/No Internet: yes/No gpa Note: Issue order copy on 25.04.2016 To The Principal Subordinate Judge Salem
P.R.SHIVAKUMAR.J., gpa C.R.P (PD) Nos.4357, 4358 of 2011 and C.R.P.No.1286 of 2016 & M.P.Nos.1 + 1 of 2011 & C.M.P.Nos.5398 and 6556 of 2016 20.04.2016