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Madras High CourtA/2186/2025allowed

Administrator General And Official Trustee Of Tamil Nadu v. Nil

2025-04-24Honourable Mr Justice S. S. Sundar8 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 24-04-2025

CORAM

THE HONOURABLE MR JUSTICE S. S. SUNDAR in A.No.1840 of 2025

1. Administrator General and Official Trustee of Tamil Nadu High Court, Chennai 600 104.

Applicant(s) Vs

1. nil nil Respondent(s) PRAYER To confirm the revised offers of the successful bidders namely Mr.M.V.M.Vel Mohan, in respect of properties in Sl.Nos.2, 6 and 7 and M/s.Velammal (Chennai) Educational Trust, in respect of properties in Sl.Nos.3, 4 and 5 of the auction notification dated 16.04.2025 in respect of properties at Ayanambakkam Village, Poonamallee Taluk, Thiruvallur District, with a direction to the Administrator General and Official Trustee of Tamil Nadu to enter into lease

agreement with the above bidders for a period of thirty years with a provision to enhance the annual lease at 15 percent once in three years by collecting 2 times of lease amount towards rental advance within 15 days from the date of order of this Court.

For Applicant(s):

Mr. D.Lingeswaran, Administrator General And Official Trustee Of Tamil Nadu

ORDER

This application is filed to confirm the revised offers of the successful bidders namely Mr.M.V.M.Vel Mohan, in respect of properties in Sl.Nos.2, 6 and 7 and M/s.Velammal (Chennai) Educational Trust, in respect of properties in Sl.Nos.3, 4 and 5 of the auction notification dated 16.04.2025 in respect of properties at Ayanambakkam Village, Poonamallee Taluk, Thiruvallur District, with a direction to the learned Administrator General and Official Trustee of Tamil Nadu ("AG & OT" for brevity) to enter into lease agreement with the above bidders for a period of thirty years with a provision to enhance the annual lease at 15 percent once in three years by collecting 2 times of lease amount towards rental advance within 15 days from the date of order of this Court.

2.Pursuant to the directions of this Court, the learned AG & OT published an auction notification in the Hindu and Daily Thanthi newspapers was published on 16.04.2025 inviting tenders from prospective lessees to take the properties which are brought to auction in seven lots. Though 58 applications were sold, only 6 applications were received in respect of 6 parcels of land, out of 7 parcels. The list of bidders in respect of the respective parcels is given below :

Address of the Property at Ayanambakkam Village, Poonamallee Taluk, Tiruvallur District, Extent and Type Sl.

No.

Upset Price EMD in Rs Highest Bid Amount Survey Nos.630,631, 656,657, 658/1,659 Rs.4,00,00,000/- --- No Bidder (10.705Acres) (Agricultural) Survey No. 664/1 Rs.30,00,000/- Rs.60,00,000/- Rs.31,31,000/- (0.850 Acres) (Agricultural) SurveyNos.611/1, 611/4,613/2,614/1, 614/2, 614/3, 615/1, 615/2, 615/3, 615/4,616,617/1,617/2,617/3,6 Rs.2,85,00,000/- Rs.5,70,00,000/- Rs.2,86,00,100/- (7.155 Acres) (Agricultural) Survey Nos.238, 240, 241/1, 241/2, 622/2,622/3,636, Rs.6,00,00,000/- Rs.12,00,00,000/- Rs.6,01,01,000/-

637/1,637/2,638, 639/3,640,641,642/1, 645,635/2 (15.700Acres) (Agricultural) SurveyNos.200,201, 205,206,207/1, 207/2,208,646/1, 647,648,199 (14.660Acres) (Agricultural) Rs.5,60,00,000/- Rs.11,20,00,000/- Rs.5,61,00,000/- SurveyNo.

175/4 Rs.75,00,000/- Rs.1,50,00,000/- Rs.76,40,000/- (1.920 Acres) (Industrial) SurveyNo.87/2 (0.990 Acres) (Industrial) Rs.35,00,000/- Rs.70,00,000/- Rs.36,00,000/- 3.As far as the property which is described in Sl.No.1, there was no bidder. The highest bidder for the properties in Sl.Nos.2, 6 and 7 is one Mr.M.V.M.Vel Mohan. In so far as properties which are described in Sl.Nos.3, 4 and 5, the highest bidder is one M/s.Velammal (Chennai) Educational Trust. Mr.M.V.M.Vel Mohan and M/s.Velammal (Chennai) Educational Trust shall hereinafter be referred to as "M/s.Velammal Group". 4.It is also the fact that the same group have earlier submitted their offer by a letter that is annexed in the typed set of papers. The learned AG & OT has

reported that, as per the communication dated 19.03.2025, which was received on 24.03.2025, the group has offered to take five items of properties. However, the amount quoted by the same group is less than the amount offered by them earlier in their communication dated 19.03.2025. The justification for the reduction of amount offered by M/s.Velammal Group is that the offer they have made earlier is subject to condition that the enhancement of annual lease amount should be by 9% once in three years. Since the terms and conditions of the auction as per the tender notification now contemplates enhancement of lease amount by 15% once in three years, it is stated that M/s.Velammal Group have reduced their offer.

5.On the date of auction, this Court gave permission to the learned AG & OT to negotiate with the bidders to find out the possibility of enhancement in the lease amount. This Court also indicated that the amount cannot be less than the amount which had already been indicated and acknowledged by the bidders even in their previous communication dated 19.03.2025. Accordingly, the learned AG & OT has now reported that M/s.Velammal Group have agreed to

pay the amount earlier agreed vide their previous communication dated 19.03.2025, as given in Para No.4 of the report filed by the learned AG & OT. It is stated that they have also agreed for enhancing the lease amount by 15% once in 3 years.

6.Therefore, this application is allowed and it is for the learned AG & OT to get the formal lease agreement executed, including all the terms and conditions that were indicated in the application itself, within 15 days from the date of this order. The difference in amounts, i.e., the amount that was quoted at the time of bid and agreed subsequently pursuant to the negotiation, may also be collected before the lease agreement is entered into. If the lease agreement is to be registered, the cost of registration shall be borne out by the prospective lessee. It is also made clear that the learned AG & OT shall pursue the application for change of classification without any delay and formal handing over of possession can take place immediately after the execution of the lease deed. The lease shall specifically state the date of commencement, after the

receipt of the difference amount as indicated above. 24-04-2025 Index:Yes/No Speaking/Non-speaking order Internet:Yes To The Administrator General and Official Trustee of Tamil Nadu, High Court Campus, Chennai - 600 104.

S.S.SUNDAR J.

mkn in A.No.1840 of 2025 24-04-2025