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2021 Supreme(Online)(Mad) 71237

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Hon`ble Mr Justice T.RAJA
M/S KEYARAM HOTEL PVT LTD – Appellant
Versus
THE MEMBER SECRETARY – Respondent



IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2021 CORAM THE HONOURABLE MR.JUSTICE T.RAJA AND THE HONOURABLE MR.JUSTICE V.SIVAGNANAM W.A.Nos.2599 & 2600 of 2012 M/s Keyaram Hotel Pvt.Ltd., rep.by its Director Mr.Gopichand Idandas No.23, College Road Chennai 600 006 .. Appellant in W.A.No.2599 of 2012 M/s Keyaram Hotel Pvt.Ltd., rep.by its Director Mr.K.Sandrasegaran No.2, Harrington Road Chetpet, Chennai 600 031 .. Appellant in W.A.No.2600 of 2012 -vs-

1. The Member Secretary Chennai Metropolitan Development Authority No.1, Gandhi Irwin Salai Egmore, Chennai 600 008 .. 1st Respondent in W.A.No.2599 of 2012

2. The Chief Manager Large Advances Branch Bharat Overseas Bank Ltd., 756, Anna Salai, Chennai .. 2nd Respondent in W.A.No.2599 of 2012

3. The Secretary to Government Housing and Urban Development Department Fort St.George Chennai 600 009 .. 1st Respondent in W.A.No.2600 of 2012

4. The Member Secretary Chennai Metropolitan Development Authority No.1, Gandhi Irwin Salai Egmore, Chennai 600 008 .. 2nd Respondent in W.A.No.2600 of 2012 Appeals filed under Clause 15 of the Letters Patent against the common order dated 20.09.2012 made in W.P.Nos.27465 & 29485 of 2008.

For Appellant :: Mr.S.Sundaresan For Respondents :: Mr.Tiruvenkadam for CMDA Mr.V.Manoharan Government Advocate for State JUDGMENT (Judgment of the Court was made by T.RAJA, J.)

These two writ appeals are directed against the impugned common order dated 20.09.2012 passed by the learned single Judge in Writ Petition Nos.27465 & 29485 of 2008.

2. Learned counsel appearing for the appellant-M/s Keyaram Hotels Private Limited submitted that the appellant applied for planning permission to develop the property situated at Door No.1, Harrington Road, Chennai. After processing the same, the respondent-Chennai Metropolitan Development Authority (for short, the CMDA) has granted the planning permission with a direction to pay a sum of Rs.33,00,000/- vide their letter of demand No.C3/22322/99 dated 22.2.99, after the Government have issued the Government Order granting planning permission for the development. The appellant challenged the said demand in Writ Petition Nos.3104 & 4421 of 1999, but the Court directed the appellant to pay the amount by way of bank guarantee. Accordingly, the bank guarantee was initially given for a period of 5 years and the guarantee shall be enforceable by CMDA on demand at any time before the expiry of the period specified therein. Learned counsel appearing for the appellant also submitted that the Development Control Rules clearly prescribes that the security deposit amount is refundable on completion of the building and after issuance of the completion certificate. Therefore, when the building was completed and the CMDA had inspected the premises, they had also issued the completion certificate on 20.9.2002 by letter No.ECI/31008/2002. Since the building has been completed in accordance with law, on the basis of the issuance of the completion certificate, the security deposit shall be refunded as per the approved plan as certified by CMDA. When the CMDA had issued the completion certificate after inspection of the building, the appellant is entitled to get the security deposit. But curiously, the CMDA issued a show cause notice dated 13.10.2003 calling upon the appellant to explain as to why the bank guarantee should not be invoked stating as if the appellant had violated the Development Control Rules in the construction. This show cause notice was issued after the appellant insisted for return of the bank guarantee. However, the appellant, after receiving the show cause notice, explained through the letter dated 10.11.2003 that the show cause notice is wrong, because there is no deviation and the same was also received by the CMDA on 12.11.2003. Once again the appellant has given another reply on 29.11.2003. Thereafter, the CMDA has sent another letter on 30.1.2004 directing the appellant to apply for a revised plan, for which the appella

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