V. Eswar v. The Administrator General And The Official Trustee Of Tamil Nadu
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 12-06-2026
CORAM
THE HON'BLE MR JUSTICE S. M. SUBRAMANIAM A.No. 2992 of 2025 V. Eswar S/o.Venkatesan, No.1, Gandhi Street, Old Thrumangalam, Anna Nagar, Chennai 600 040.
..Applicant Vs The Administrator General and the Official Trustee of Tamil Nadu High Court Campus, Chennai 600 104.
..Respondent Prayer in A No. 2992 of 2025 : To Cancel/Quit the Rental Agreement dated 23/04/2025 in respect of property situate at Shop No.6, Door No.52/64, Perumal Mudali Street, Sowcarpet, Chennai 600 001., measuring in an extent of 80 Sq.ft and refund the advance amount of Rs.3 Lakhs to the applicant without any deduction.
For Applicant :
Ms.V.Seetha For Respondent(s):
Ms.S.Sumathi, Administrator General & Official Trustee of TamilNadu for Respondent
ORDER
The present application has been instituted to cancel / quit the rental rental agreement dated 23.04.2025 in respect of the property situated at Shop No.6, Door No.52/64, Perumal Mudali Street, Sowcarpet, Chennai 600 001
measuring an extent of 80 Sq.ft and refund the advance amount of Rs.3,00,000/- to the application without any deduction.
2. The subject property belonging to the Administrative General and Official Trustee of Tamil Nadu was auctioned. The applicant was the highest bidder in the auction conducted in respect of the subject property. The applicant offered a rent of Rs.30,000/- per month and Rs.3,00,000/- was remitted as security and caution deposit. The auction proceedings was duly confirmed by the High Court of Madras in Application No.2190 of 2025 dated 24.04.2025. Consequently, lease agreement was duly executed for a term of two years from 09.01.2025. Clause 17 of the auction terms, in unambiguous terms, states that in the event of withdrawal of auction the Earnest Money Deposit made by the successful bidder would be forfeited in full. Having agreed the auction conditions, the applicant participated and entered into an agreement. Therefore, the earnest money deposit amount paid stands forfeited in the view of the auction amount made available to the persons participated in the auction.
3. The auction was conducted after publishing an auction notification on 09.04.2025. Certain charges have been incurred on conducting the auction as stated in the report of the AG and OT of Tamil Nadu, which is stated hereunder:
S.No Head of Expense Amount Advertisement Rs.39,766 2.
Other administrative charges (rough estimate) Rs.10,000 3.
Rental arrears (From 09.05.2025 - 17.06.2025) Rs.39,258 4.
Rental loss (3 months approximately) Rs.90,000 Total Expenses Rs.1,79,024 5.
EMD Forfeiture Rs.60,000 6.
Total deduction from deposit Rs.2,39,024 7.
Balance (Rs.3,00,000 - Rs.1,64,024 = Rs.1,35,976) Rs.60,976
4. Therefore, after deducting the expenditure a sum of Rs.60,976/- is payable to the applicant. In view of the said position, the Administrative General is directed to repay a sum of Rs.60,976/- to the applicant within a period of two weeks from the date of receipt of a copy of this order. The application stands disposed of.
12-06-2026 Index: Yes Speaking order KST
To The Administrator General and the Official Trustee of Tamil Nadu High Court Campus, Chennai 600 104.
S.M.SUBRAMANIAM J.
KST 12-06-2026