1. Application No.6457 of 2016 is filed to grant leave to file suit as the property registered under the sale deed situate outside jurisdiction of this Court. The suit is originally filed for the following reliefs :

(i) to declare that the defendant is in gross breach of its obligations under the contract and under the sale deeds.

(ii) to declare that the Sale Deeds dated 6.5.2004 and 16.12.2004 executed by the 2nd plaintiff pursuant to the MOU entered into by the 1st plaintiff registered as Document No.1689 of 004 and 5898 of 2004 respectively be cancelled and the defendant ordered to reconvey the lands by a Registered Deed.

(iii) for mandatory injunction directing the defendant to reconvey the lands morefully described in the schedule and return all the original title deeds of the schedule mentioned property to the plaintiffs and the 2nd plaintiff to return the sale consideration received from the defendant under the sale deeds.

(iv) to grant injunction on the defendant from alienating, encumbering or otherwise dealing with the properties more fully described in the schedule.

2. When the application for leave to sue is pending, an amendment application also filed by the Government of Tamil Nadu to bring the following amendment in the plaint in C.S.D.No.22017 of 2016:

(i) Declaration that the Memorandum of Understanding dated 16.09.2003 executed at Chennai between the 1st plaintiff and the Defendant has become void as having hit by the principle of frustration due to the breach committed by the Defendant.

(ii) Declaration that resultantly the allotment orders made in Chennai dated 13.02.2004 and 10.12.2004 executed between the 2nd plaintiff and the defendant ceases to have any effect.

(iii) Mandatory injunction directing the Defendant to enter into Deed of cancellation of sale deeds dated 06.05.2004 and 16.12.2004 registered as Doc.No.1689 of 2004 and 5898 of 2004 with the 2nd plaintiff, upon receiving the refund of the sale consideration.

Both the applications are heard together and the common order is delivered.

3. The brief facts leading to file the suit is as follows :

3.(a) The 1st plaintiff Government of Tamil Nadu issued G.O.Ms.No.86, Industries (MIG.2) Department, dated 08.10.2002 for setting up Integrated Knowledge Industry Township at the IT park at Siruseri. The respondent company shown interest in the above project and filed an application for allotment of 165 Acres of land at Siruseri on outright sale basis to set up of integrated/model township with an investment of Rs.500 Crores. The second plaintiff in his letter dated 09.04.2003 has agreed in principle to allot 100 acres of land at SIPCOT IT Park, Siruseri on outright sale basis at a cost of Rs.13.00 lakhs per acre subject to certain conditions. Thereafter on 16.09.2003, the Government of Tamil Nadu entered into a Memorandum of Understanding with Lee Kim Tah Holding Ltd., Singapore (hereinafter referred to as 'LKTH Ltd'.). As per the provision of the MoU, these lands would be offered for setting up township at prefixed price of Rs.15.00 lakhs. Out of this amount Rs.13.00 lakhs was to be paid to the SIPCOT upon allotment of the lands and the balance amount to be paid by the LKTH Ltd.upon the completion of first phase of the project or at the end of three years from the date of allotment whichever is earlier. One of the crucial terms of the MOU was that the first phase of 2000 housing units was to be completed within three years of the date of the registration of the lands.

3.(b) After entering the MoU the dispute which arose between the defendant and the Government of Tamil Nadu subsequently had to do with the grant of the Environmental Clearance for the completion of the project. As the defendant has not obtained environmental clearance, the Ministry of Environment and Forest directed the Principal Secretary, Environment Department, Government of Tamil Nadu under Section 5 of the Environment (Protection)Act 1986 to direct the project proponent to stop the construc