IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED:11.2.2011 CORAM THE HONOURABLE MR. JUSTICE R.SUDHAKAR Writ Petition No.2854 of 2011 and M.P.No.1 of 2011 M/s.Automotive Ancillary Services Ltd., represented by its Managing Director Mr.R.Chandrasekar, 66, 3rd Main Road, Kasthuribai Nagar, Adyar, Chennai-600 020 ... Petitioner vs. 1. The Chief Executive Officer, Chennai Metropolitan Development Authority, Thalamuthu-Natarajan Building, 1, Gandhi Irwin Road, Egmore, Chennai-600 008. 2. The Project Manager, Chennai Metropolitan Development Authority, Thalamuthu-Natarajan Building, 1, Gandhi Irwin Road, Egmore, Chennai-600 008. ... Respondents The Writ Petition is filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus directing the first respondent to grant approval to the Petitioner company by issuing No Objection Certificate in terms of Clauses 25 and 31 of the Lease cum Sale Agreement dated 16.04.2009 as per the request made by the petitioner in their letter dated 28.12.2010. For Petitioner : Mrs.Rita Chandrasekaran for M/s.V.Kalyana Raman For Respondents : Mr. J.Ravindran https://hcservices.ecourts.gov.in/hcservices/ O R D E R The Writ Petition is filed praying to issue a Writ of Mandamus directing the first respondent to grant approval to the Petitioner company by issuing No Objection Certificate in terms of Clauses 25 and 31 of the Lease cum Sale Agreement dated 16.04.2009 as per the request made by the petitioner in their letter dated 28.12.2010. 2. The petitioner in this case is an Automotive Ancillary Unit. The petitioner was allotted Plot Nos.11 and 12D, at Thirukkachiyur in Sengundram Area and Maraimalai Nagar Industrial area in Maraimalai Nagar, for the purpose of setting up an industrial unit. A lease-cum-sale agreement was entered into on 16.04.2009 and that lease is subsisting as on today. The petitioner has paid the entire sale consideration and sale deed alone has to be executed. Pending the same, the petitioner entered into a joint venture with another company and in accordance with the conditions contained in the lease-cum-sale agreement, more particular, Clauses 25 and 31 of the lease-cum-sale agreement. The petitioner made an application for No Objection Certificate on 28.12.2010, which reads as follows: "We are pleased to inform you that we have successfully entered into a joint venture agreement with M/s.Sodesia SGPS, Portugal. The broad terms of agreement with them would entail acquisition of 88% of the equity capital of our company. This would result in a change in the shareholding of our company. As per the terms of sanction of our lease cum sale agreement for our industrial plot Nos.11 and 12D, Thirukatchur and Sengundram, Maraimalai Nagar we bring it to your kind notice the change in the shareholding pattern of our company. This is for your necessary information to carry out suitable changes, if any in your records. In these circumstances, we would request you to grant your consent for change in shareholding." This letter was given in person and acknowledged by the chief Executive Officer, CMDA., who gave an audience to the petitioner and, thereafter, no development has taken place. Subsequently, on 14.01.2011, the petitioner has made a further request which reads as follows: "We wish to inform you that we are availing credit facilities from state Bank of India, Industrial Finance Branch, Anna Salai, Chennai 600 002. They have sanctioned term loan and working capital facilities as per their sanction letter reference No.IFB/AMT4/07 dated 28.10.2010. we want to mortgage additional collateral of https://hcservices.ecourts.gov.in/hcservices/ the above property for our credit facilities. We are enclosing herewith copy of the above sanction letter for your reference. We request you to kindly issue no objection certificate for mortgage of the above property at the earliest" The request of the petitioner is to permit them to mortgage the property for raising funds for their business purpose as they have already paid the entire sale consideration. On 25.01.2011, the petitioner made a further request to the respondents-Authority to issue "No Objection Certificate" as above, in view of the urgency to proceed with the joint venture agreement. The petitioner referring to Clauses 25 and 31 of the lease-cum-sale agreement dated 16.04.2009, sought for the consent of the CMDA, which is not considered so far. 3. The respondents inspected the property and submitted a report on 07.02.2011 stating that the industrial plot is a vacant land and there is no compound wall. Except stating that there is no compound wall no other reason appears to be standing in the way of the petitioner getting the "No Objection Certificate" and the written consent in terms of Clause 31 of the lease-cum-sale agreement dated 16.04.2009. 4. As pointed out by the learned counsel for the petitioner the automotive Ancillary Unit in and around Chennai is fast developing, the respondent–Authority should keep in mind the fast industrial growth, the requirement of the State and improve the industrial sector. It will also enable more employment and therefore, the respondent should not deny to grant the approval as sought for by the petitioner. 5. Considering the urgency in the matter, the respondents are directed to consider and issue written consent and No objection Certificate in terms of Clause 25 and 31 of the lease cum sale agreement dated 16.04.2009 within a period of two weeks from the date of receipt of a copy of this order. 6. With the above direction, the writ petition is disposed of. Consequently, connected miscellaneous petition is closed. No costs. Sd/- Asst.Registrar. /true copy/ Sub Asst.Registrar. kal https://hcservices.ecourts.gov.in/hcservices/ To 1. The Chief Executive Officer, Chennai Metropolitan Development Authority, Thalamuthu-Natarajan Building, 1, Gandhi Irwin Road, Egmore, Chennai-600 008. 2. The Project Manager, Chennai Metropolitan Development Authority, Thalamuthu-Natarajan Building, 1, Gandhi Irwin Road, Egmore, Chennai-600 008. 1 cc to Mr.V. Kalyanaraman, Advocate, Sr. 10561 1 cc to Mr.J. Ravindran, Advocate, Sr. 10859 Writ Petition No.2854 of 2011 and M.P.No.1 of 2011 MS (CO) kk 18/2 https://hcservices.ecourts.gov.in/hcservices/