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2023 Supreme(Online)(MAD) 34473

MADRAS HIGH COURT
Housing and Urban Development Department – Appellant
Versus
M/s.P.S.T.Engineering Construction – Respondent
A 422 2022



Appln.No.422 of 2022 in

C.S.(Comm. Div.)No.108 of 2021

IN THE HIGH COURT OF JUDICATURE AT MADRAS

Reserved on:

03.03.2023

Pronounced on:

11.12.2023

CORAM

THE HONOURABLE MR.JUSTICE C.SARAVANAN

Application No.422 of 2022

in

C.S.(Comm. Div.) No.108 of 2021

1.The Chairman,

Tamil Nadu Urban Habitat Development Board,

(Formerly Tamil Nadu Slum Clearance Board),

No.5, Kamarajar Salai, Chennai – 600 005.

2.The Managing Director,

Tamil Nadu Urban Habitat Development Board,

No.5, Kamarajar Salai,

Chennai – 600 005.

3.The Superintending Engineer,

Chennai North II Circle,

Tamil Nadu Urban Habitat Development Board,

(Formerly Tamil Nadu Slum Clearance Board),

No.5, Kamarajar Salai, Chennai – 600 005.

4.The Executive Engineer, Division III,

Tamil Nadu Urban Habitat Development Board,

Vyasarpadi, Chennai – 600 039.

..Applicants

Vs.

M/s.P.S.T. Engineering Construction

Represented by its Managing Partner,

V.S.Thennarasu,

2/352, Vavipalayam, Kolaram (Po.),

1/34

https://www.mhc.tn.gov.in/judis

Appln.No.422 of 2022 in

C.S.(Comm. Div.)No.108 of 2021

Paramathi Velur Tk.,

Namakkal District – 637 201.

..Respondent

Prayer: Application filed under Order XIV Rule 8 of the O.S.Rules read with

Order VII Rule 11 of C.P.C., 1908 praying to reject the plaint in C.S.No.108

of 2021.

For Applicants : Mr.Ramanlaal

Additional Advocate General

Assisted by

Mr.Edwin Prabakar

Special Government Pleader

For Respondent : Mr.M.S.Krishnan

Senior Standing Counsel

for Mr.S.Senthil

O R D E R

The defendants in C.S.(Comm.Div.).No.108 of 2021 have filed the

above application in A.No.422 of 2022 to reject the plaint in the above suit.

The above suit has been filed by the respondent herein ( the plaintiff) for the

following relief:-

a)To declare that the show cause Notice

Rc.No.TNUHDB/815/D1/SE(CC-II)V2017 dated

08.10.2021 issued by the third defendant to the

plaintiff as ultravires, null &void and arbitrary,

with the consequential relief of a permanent

injunction restraining the defendants from in any

manner initiating coercive steps to get the plaintiff

blacklisted by cancelling or suspending the

Plaintiffs Contractor Registration with respect to

Lump Sum Agreement C.R. No.7/SE(CC-III) 2017

- 18 dated 06.12.2017 entered into between the

2/34

https://www.mhc.tn.gov.in/judis

Appln.No.422 of 2022 in

C.S.(Comm. Div.)No.108 of 2021

Plaintiff and the 3rd Defendant, and

b) To grant a decree of mandatory injunction

directing the defendants to assist the Plaintiff Firm

to unlock the tenements under lock & key for the

purpose of re-doing the balance works at Blocks

A, B,C and D of K.P Park, Phase-I, Pulianthope,

Chennai, and

c) Cost of the suit and

d) Pass any further or other order(s) as this Hon'ble

Court may deem fit and proper in the facts and

circumstances of the case and thus render justice.

2.The suit has been filed by the respondent based on the alleged

threat perceived by the respondent on account of the letter dated 19.08.2021

followed by another notice dated 08.10.2021 of the Superintending Engineer

of the Tamil Nadu Urban Habitat Development Board (Formerly Tamil Nadu

Slum Clearance Board), the 3rd applicant herein.

3.The respondent had entered into a contract on 06.12.2017 with the

3rd applicant for the construction of 864 economically weaker section multi-

storeyed tenements for the applicant.

4.The contract value was for a sum of Rs.91,81,63,852/-. The period

of contract was for a period of 18 months starting from 19.1.2018. The case of

the respondent is that the work was completed and the building was handed

over to the applicants on 10.05.2019.

3/34

https://www.mhc.tn.gov.in/judis

Appln.No.422 of 2022 in

C.S.(Comm. Div.)No.108 of 2021

5.It is further case of the respondent that an inspection was

conducted and completion certificate was also issued to the respondent on

07.8.2019 by the applicant. The respondent claims that the comp

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