Mr.A.K.Saravanan v. The Tamil Nadu Industrial Investment Corporation Limited,

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 01-06-2026

CORAM

THE HON'BLE MR JUSTICE M.DHANDAPANI MR.A.K.Saravanan S/o.Late MR.A.K.Kandasamy, No.55, DR.Alagappa Road, Tatabad, Coimbatore - 641 012.

..Petitioner(s) Vs

1. The Tamil Nadu Industrial Investment Corporation Limited, Coimbatore Branch, Codissia Building, G.D.Naidu Towers, No.5A, Huzur Road, Anna Statue, Coimbatore - 641018.

2. M/S.Sree Daksha Infrastructur Pvt Ltd., No.1, Gandhi Layout, maruthamalai road, Bharathiyar University Post, Vadavalli, Coimbatore - 641 046.

..Respondent(s) Writ Petition is filed under Article 226 of Consitution of India, to issue a Writ of Certiorarified Mandamus, by calling for the records of the respondent culminating in the impugned communication dated 07.04.2026 bearing letter No.TIIC/CBE/BO/FU/2026-27 and quash the same and direct the 1st respondent herein to issue sale certificate in favour of the respondent herein in respect of the secured asset viz., the property situated S.F.No.441/1, ganapathy village, coimbatore Taluk measuring an extent of 1.40 acres on receipt of agreed balance settlement amount of Rs.10.35 crores by way of private treaty under rule 8 of the security interest (Enforcement) (Amendment) Rules, 2002.

For Petitioner(s):

Mr. M.Santhanaraman For Respondent(s):

Mr.K.Magesh

ORDER

The writ petition has been filed seeking to quash the impugned communication dated 07.04.2026 bearing letter No.TIIC/CBE/BO/FU/2026-27 and quash the same and direct the 1st respondent herein to issue sale certificate in favour of the respondent herein in respect of the secured asset viz., the property situated S.F.No.441/1, ganapathy village, coimbatore Taluk measuring an extent of 1.40 acres on receipt of agreed balance settlement amount of Rs.10.35 crores by way of private treaty under rule 8 of the security interest (Enforcement) (Amendment) Rules, 2002.

2. The case of the petitioner is that M/s.Llasar Flow Controls Pvt. Ltd., wherein the petitioner is a shareholder and his late father was the Founder, had availed a loan from the first respondent in 1981. Due to default, the first respondent took possession of the collateral property. Pursuant to negotiations, the first respondent agreed for one time settlement at Rs.11.5 Crores. The second respondent was identified as the purchaser and paid 10% upfront amount of Rs.1.15 Crores to the first respondent. When the petitioner requested issuance of sale certificate in favour of the second respondent on payment of the balance

Rs.10.35 Crores, the first respondent issued the impugned communication dated 07.04.2026 stating that private treaty cannot be considered after receipt of 10% amount. Challenging the said order, the petition has filed the present writ petition.

3. When the matter came up for hearing, the learned counsel for the petitioner submits that without interfering with the impugned order, this Court may direct the first respondent to consider and pass orders on the petitioners representation for settling the OTS proposal and to permit the petitioner along with other legal heirs/borrowers to appear before the first respondent.

4. The learned counsel for the respondent has not raised any objection in this regard.

5. Without expressing any opinion on the merits of the case, this Court is inclined to dispose of the writ petition with the following directions; ''1. The petitioner and other legal heirs of Late A.K.Kandasamy shall appear before the first respondent with all relevant documents within a period of two weeks from the date of receipt of a copy of this order

2. On such appearance, the first respondent shall hear the

petitioner and other legal heirs and consider their representation regarding OTS and sale by private treaty, strictly in terms of the State Financial Corporations Act, 1951 and the Security interest (Enforcement) Rules, 2002 and pass appropriate orders on merits and in accordance with law, within a period of twelve weeks thereafter, after affording opportunity of hearing to all concerned parties including the second respondent purchaser.

3. It is made clear that the first respondent shall not be influenced by any observations made in this order.''

6. With the above directions, the writ petitions stands disposed of. No costs.

01-06-2026 Index: Yes/No Speaking/Non-speaking order rli To The Tamil Nadu Industrial Investment Corporation Limited, Coimbatore Branch, Codissia Building, G.D.Naidu Towers, No.5A, Huzur Road, Anna Statue, Coimbatore - 641018.

M.DHANDAPANI, J.

rli 01-06-2026