The Hindu : Chennai :13 july 2012

While cancelling a sale deed executed by the Tamil Nadu Industrial Investment Corporation (TIIC) in favour of a person as it was obtained by fraud, the Madras High Court imposed costs of Rs. 10,000 on him for misrepresenting facts before the court to get a favourable order.

The sum should be paid to the Tamil Nadu State Legal Services Authority within one week, a Division Bench of Justices Elipe Dharma Rao and M. Venugopal said in its judgment on an appeal.

Initially, as there was default in repayment of a loan, TIIC foreclosed the loan account, took constructive possession of the mortgaged property along with the superstructure at Hosur and auctioned it.

 At a TIIC auction Mohamed Fazal quoted the highest amount of Rs. 56 lakh, which was enhanced to Rs. 59 lakh after negotiations. He was issued the sale confirmation letter.

K.S. Palanisamy filed a writ petition seeking a direction to the TIIC to accept his offer amount of Rs. 70.99 lakh.

By an order on September 16 last year, a single Judge allowed his plea.

Following this, the sale deed was executed by the company in Mr. Palanisamy’s favour. Hence, the present appeal by Mr. Fazal.

His counsel said that Mr. Palanisamy had not participated in the auction.

 After the sale confirmation certificate had been issued in Mr. Fazal’s name, Mr. Palanisamy filed the writ petition with an ulterior motive.

Cancelling the sale deed executed in Mr. Palanisamy’s name, Messrs. Justices Elipe Dharma Rao and Venugopal directed the TIIC to execute the deed in favour of Mr. Fazal as per the sale confirmation certificate.

The company should refund the eligible amount to Mr. Palanisamy.