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2021 Supreme(Mad) 1267

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.S. SUNDAR, J.
Carborundum Universal Ltd. - Petitioner
Versus
Chennai Metropolitan Development Authority, Rep. by its Member Secretary & Ors. - Respondents
W.P. No. 30124 of 2013
Decided On : 24-03-2021

Advocates Appeared:
For the Petitioner: Mr. S. Raghunathan for B. Giridhara Rao.
For the Respondents: Mr. P.S. Ganesh.

Headnote:

Transfer of Property Act - Section 10 and 11 - Execution a Sale Deed - Lease cum sale agreement - Writ of Certiorarified Mandamus - Petitioner is a public limited company and engaged in business of manufacture of bonded and coated abrasives - Originally first respondent acquired a large tract of lands to an extent of about acres situated at four different villages - After acquiring lands first respondent laid out entire property into various plots for industrial use besides setting out of lands for purpose of laying roads drains and other common purposes by way of implementing a scheme which was framed to promote industries and to generate employment - It is admitted that first respondent alloted plot in CMDA industrial complex at Bonded Abrasives Pvt. Limited predecessor in interest of petitioner - Allotment of plot was pursuant to application that was submitted by erstwhile company in - It is also stated by petitioner that first respondent has passed a transfer order upon payment of requisite transfer fee - Held, Hon'ble Supreme Court had an occasion to deal with similar issue and has repeatedly held in several cases that condition restraining alienations found in transactions by which Government intend to give absolute right in favor of individuals is void - Condition that is found in draft sale deed to compel the petitioner to sell the property at price originally agreed at time of allotment is certainly repugnant to transfer that was expected as per the lease cum sale agreement - As pointed by this Court earlier none of terms of lease cum sale agreement enable the respondents to import a condition which not only restricts the absolute power of alienation but also repugnant to the right to be conferred upon petitioner under lease cum sale agreement - Writ petition is allowed.

ORDER :

This writ petition is filed for issuing a writ of Certiorarified Mandamus calling for the file of the 2nd respondent leading to the letter No. AL/10/4322/2008 dated 14.1.2011, and quash the same and to direct the respondents to execute a Sale Deed in favour of the petitioner herein in respect of Plot Nos.C4 and C5 in the CMDA Industrial Complex at Maraimalai Nagar, Chengalpattu Taluk in Kancheepuram District, without imposing any claim or condition giving a right of preemption to purchase the plots at the original cost or obtaining NOC for sale of plots as stipulated in clause 18 of the draft sale deed furnished by the Second Respondent.

2. Brief facts that are set out in the affidavit filed in support of this petition are as follows:

The petitioner is a public limited company and engaged in the business of manufacture of bonded and coated abrasives. Originally the first respondent acquired a large tract of lands to an extent of about 600 acres situated at four different villages. After acquiring the lands, the first respondent laid out the entire property into various plots for industrial use besides setting out of lands for the purpose of laying roads, drains and other common purposes by way of implementing a scheme which was framed to promote industries and to generate employment. It is admitted that the first respondent alloted plot No.C4 and C5 in CMDA industrial complex at Maraimalai Nagar to M/s. Cutfast Bonded Abrasives Pvt. Limited, the predecessor in interest of the petitioner. The allotment of plot was pursuant to the application that was submitted by the erstwhile company in 1979. The original allottee was using the plots for their manufacturing activities. Unfortunately M/s. Cutfast Bonded Abrasives Pvt. Limited was amalgamated with another company known as M/s. Cutfast Abrasives Tools Limited, under the scheme of amalgamation. As per the terms of amalgamation it is stated that all the assets of property of M/s. Cutfast Abrasives Tools Limited stood transferred and vested with the petitioner company pursuant to the order of this Court passed in C.P. No.99 and 98 and C.P. No.103 of 1990. Since the properties of the erstwhile company vest with the petitioner's company, the petitioner approached the first respondent for transfer of allotment of two plots which were originally alloted by the first respondent in favour of the erstwhile company. It is admitted that the second respondent by proceedings dated 17.12.2002, transferred the allotment of the said plots in favour of the petitioner. It is also stated by the petitioner that the first respondent has passed a transfer order upon payment of requisite transfer fee. Subsequently the first respondent executed a lease cum sale agreement on 05.05.2003 in favour of the petitioner. The allotment in respect of Plot No.C4 and C5 was transferred to the petitioner on a lease cum sale basis. As per the lease cum sale agreement, on completion of one year from the date of commercial production and adhering to the terms and conditions of the said agreement, the first respondent is expected to sell and convey to the allottee the property namely Plot Nos. C4 and C5. The memorandum of lease cum agreement dated 05.05.2003, are of course subject to certain conditions which are set forth in the agreement.

3. It is stated by the petitioner that there is no condition giving right of preemption in the lease cum sale agreement. As per the lease cum sale agreement, the petitioner is entitled to have the sale deed subject to the terms and conditions contained in the lease cum sale agreement. However, it is stated that the second respondent has insisted the petitioner to execute a sale deed with a condition to the effect that in the event of allottee wants to sell the site even after the execution of the sale deed they should give first preference to CMDA to purchase at the original cost and if they decline to take back, then the same shall be sold to third parties with No Objection Certif

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