# In the matter of SCM Silks Private Limited vs. The State of Tamil Nadu & Ors.

> HC judgment dated 2023-07-07. Citation: TCN-2023-HC-00054. The case involves two writ petitions (WP No.22388 and WP No.23846 of 2022) questioning the validity…

- **Court:** HC
- **Order date:** 7 Jul 2023
- **Citation:** TCN-2023-HC-00054
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/scm-silks-private-limited-vs-the-state-of-tamil-nadu-ors-90e5cbe8

## Summary

### Background

The case involves two writ petitions (WP No.22388 and WP No.23846 of 2022) questioning the validity of an order dated 30.06.2022 issued by the Secretary to Government, Revenue and Disaster Management Department, Chennai. The order pertains to M/s. SCM Silks Private Limited's request for exemption under Section 73 (vi)(vii) of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961. The impugned order states that M/s. SCM Silks Private Limited's request cannot be considered for grant of exemption and further action will be taken after resuming the land from Sri Ramachandra Educational and Health Trust. The order also stipulates that further action will be taken for resumption of the Government lands from Sri Ramachandra Educational and Health Trust for whom

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## Facts

In 1985, the government approved a proposal for a new private medical college in Tamil Nadu, involving Sri Ramachandra Educational and Health Trust. In 1987, the government permitted the Trust to acquire approximately 269.34 acres of land under Section 37-B of the Land Ceiling Act. This included both government poromboke land (125.66 acres) and patta land (133.68 acres). In 1989, the Trust requested the government to alienate approximately 108.40 acres of government poromboke land, but this was rejected. Later in 1989, the Managing Trustee passed a resolution agreeing to the government taking over the Ramachandra Medical College and Research Institute. The government took over the college and handed it over to TAMARAI. Various sale deeds were executed by Sri

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## Issues and analysis

### Issue 1: Whether the petitioner M/s.SCM Silks Pvt Ltd., is entitled to seek exemption under Section …

**Ratio:** The ratio is that exemption under Section 73(vi)(vii) is not applicable to M/s.SCM Silks

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**Reasoning:** The court reasoned that the impugned order was passed rejecting the application of

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**Interpretation:** The interpretation is that Section 73(vi)(vii) of the Act, which provides for

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**Application:** The ratio and reasoning apply to the specific facts of the case, as the court

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## Parties

- **Judges:** S.M.SUBRA…
- **Appellants:** M/s. SCM Silks…
- **Respondents:** The State of…
- **Other parties:** Kohi…

## Timeline

- **1985-07-01 — Government A…**: Government approved the proposal for starting a new Private Medical College in Tamil Nadu…
- **1987-12-17 — Government Pe…**: Government permitted the Trust to acquire approximately 269.34 acres of land under…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 73(vi) — Punishment for false representations to…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-73)

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