ORDER

This Writ Petition has been filed challenging the order passed by the second respondent dated 08.08.2006, thereby directed the respondents to remit a sum of Rs.28.43 lakhs towards differential land cost for registration of sale deed.

2. The petitioner was incorporated on 19.09.2002 as a Private Limited Company. Before being incorporated as a Company, the petitioner was a Partnership firm in the name and style of M/s.Meenakshi Exports, consisting of two partners. During its existence as a partnership firm, the first respondent notified to hold a public auction on 29.01.2002 for sale of a property land, building and materials belonging to M/s.Solvent Extractions (P) Limited (hereinafter referred to as “the Company”) situated in Plot No.11, SIPCOT Industrial Estate, Ranipet, Lalapet, Walajah Taluk, Vellore District. As per the conditions of tender-cum-public auction, the highest bidder will have to deposit 10% of the tender amount on the date of the auction as advance. On payment of the balance bid amount, the first respondent shall have to execute and register a sale deed in favour of the highest bidder.

3. As per the terms and conditions, the first respondent would issue the sale deed or deliver notice to the successful bidder or his nominees where the sale deed is issued in favour of the nominee, provided there should be satisfactory proof of their involvement as a Co-promoter of the industrial venture with the assets purchased in the public auction. The partnership firm was declared as a successful bidder with a bid amount of Rs.21 Lakhs for the land and building. They also deposited 10% of the bid amount on 29.01.2002. After the auction, the first respondent requested to enhance the bid amount and accordingly, the petitioner agreed to pay a sum of Rs.23 lakhs, for which, a sum of Rs.20,000/- was also paid on 19.05.2002, being the differential amount of 10% of the enhanced bid amount. By a communication dated 19.08.2002, the first respondent confirmed the bid amount in favour of the partnership firm and requested to pay the balance amount of Rs.20.70 lakhs.

4. While being so, the partnership firm was incorporated as private limited company with the Registrar of Companies vide R.C.No.18-49624 dated 19.09.2002. The erstwhile partners of the partnership firm had become the Directors. Therefore, the petitioner requested the first respondent to execute the sale deed in respect of the auctioned property in its favour. However, the first respondent informed that the sale deed can be executed in favour of the partnership firm not in the name of the petitioner. Thereafter, on 22.02.2005, the first respondent had recognized the petitioner as the successful bidder. On receipt of the communication from the second respondent dated 11.06.2003, thereby informed that the petitioner had cleared all the dues of the Company, who was the erstwhile leaseholder of the subject property. In the meanwhile, the first respondent handed over the possession of the land and building, which was auctioned on 11.11.2002. The second respondent also issued No Objection Certificate to sell the subject property in favour of the petitioner in the auction sale. Further, the second respondent informed that the petitioner should approach the second respondent for transfer of the auctioned plot with regard to 99 years lease. Therefore, the petitioner submitted a representation to the second respondent justifying their entitlements for sale deed and requested to issue sale deed. Further, the second respondent informed the petitioner that there was a change in the controlling interest / Management and therefore, according to their norms for allotment of plots, whenever, there is a change in the management, the differential plot cost has to be remitted. Though the petitioner replied that there was no change in the controlling interest of the petitioner Company, since the partnership firm was registered as a Private Limited Company, in which, the partners have becam