Madras High Court: The Court held that the High Court while exercising
its jurisdiction under Article 226 of the Constitution does not sit as
an appellate authority over the acts and deeds of the Financial
Corporation and seek to correct them. Further, in a matter between the
Corporation and its debtor, a writ court has no say except in two
situations: (a) there is a statutory violation on the par
t of the Corporation, or (b) where the Corporation acts unfairly i.e. unreasonably.
The court dismissed the writ petition filed by the petitioner praying
to quash the impugned order of Tamil Nadu Industrial Investment
Corporation Ltd. and to settle the dues of the petitioner through a
one-time settlement. The court relied upon U.P. Financial Corpn. v. Gem
Cap (India) (P) Ltd., (1993) 2 SCC 299 and Karnataka State Industrial
Investment and Development Corpn. Ltd. v. Cavalet India Ltd., (2005) 4
SCC 456. [Vaanavil Dyeing Unit No.2 v. Tamil Nadu Industrial Investment
Corporation Ltd., WP No. 1720 of 2012 decided on July 13, 2012]This judgment is reproduced from a publicly available source for informational purposes and does not constitute legal advice. If you believe this listing contains an error,
let us know.