HONOURABLE MR JUSTICE S. M. SUBRAMANIAM AND THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ WP No. 8084 of 2017

2025:MHC:2499
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 27-10-2025
CORAM
THE HONOURABLE MR JUSTICE S. M. SUBRAMANIAM AND
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
WP No. 8084 of 2017
1. K.Ramamurthy
2. V.Nagammal
3. A.RoseMary
4. R.Shanthi
5. S.Padhma
6. R.Saraswathi
7. H.Sujatha
8. D.Selvi
9. V.Anitha
10. M.Alamelu
11. M.Parasuraman
12. P.N.Devaraj
13. B.Murugan
14. I.Tamilarasi
15. R.Panjavarnam
16. Sasikala.S.
17. R.Sathya
18. V.Thilagavathy
19. K.Gunasundhari
20. K.Pushpa
21. Mrs.K.Jayanthi
Petitioner(s)
Vs
1. The Securities Exchange Board of India, Southern Regional Office at Overseas Towers, 7th Floor,
No.756-L, Anna Salai, Chennai-2
2.The Inspector General of
Registration, No.100, Santhome High Road, Pattinapakkam, Chennai-28
3.The Inspector of Police
E.O.W.II Viswanathapuram,
Madurai 625 104
4.Disc Assets Lead India Ltd., rep. by its Managing Director Mr.V.Janarthanan, reg. Office at Old
D.No.59/1 (New No.119) Canal Bank Road, CIT Nagar, Chennai-35
5.M/s.M.V.T.Anthonasami(m/46)
The Secretary, Disc Asset Lead India Ltd,
Investors Welfare Association,
No.1-64-1, Main Road, Viswanathapuram, Shencottai, Tirunelveli District.
6.M/s.V.Janardhanan,
7.M/s.N.Arun,
8.C.Srinivasan,
9.M/s.M.N.Umashanker,
10.M/s.S.Jeevalatha,
11.M/s.T.Shyam Chander
12.Handiman Services Limited,
Having Its Branch Office At
F4, SG, Vaibogam Apartments, No.33/77, South Sivan Koil Street, Vadapalani, Chennai-026. Rep By Its Authorised Signatory Mr.T.D.Vivekanandan.
13.The Registrar Of Companies,
Southern Region, Office at Block No.6,
B Wing, 2nd Floor,
Shastri Bhawan, No.26, Haddows Road,Chennai-034.
14.Directorate Of Enforcement,
Rep. by the Joint Directorate of
Enforcement (Southern region),
2nd and 3rd floors, no.84, Greams road, Thousand lights, Chennai-600006.
15.M/s.Dal Provision Lead India Limited,
Rep by its Managing Director
D.V. Shreedhar, Flat 3-A,
1st Floor, Alankar Apartments, Door No.25,Raja Bather Street, T.Nagar, Chennai- 600 017.
16.M/s.Visvas Promoters Private Limited,
Represented by Managing Director, Mr.Sankara Iyer Seetharaman,
Having Office at No.84, T.P.K.Road, Andalpuram, Madurai 625 003.
17.Disc, Dal, Aiyan Group Of
Companies
Depositors and Agents Welfare
Association, Madurai (Reg No.38/2019),
Rep. by its Secretary,
Mr.Sundaram, No.12-1-12, Kasthuri Nagar,
Lakshmi Bakery Back side, Madurai Main Road, Palamedu, Madurai District-625 503.
18.C.Panchali,
19.Ayyanar,
20.Chitra Gajendhiran,
21.Santhi,
22.Poongavanam,
23.Devi,
24.Poomadevi,
25.Indhira,
26.Pattu,
27.Vijaya,
28.Subbu,
29.Kalaivani,
30.Sundari,
31.Navammal,
32.Pottukanni,
33.Krishnaveni,
34.Jayalakshmi,
35.Kala,
36.Krishnamoorthy,
37.Poongodi,
38.Amutha,
39.Mythili,
40.Selvi,
41.Sundhari,
42.Saraswathi,
43.Sundhari,
44.Sundarambal,
45.Rangarav,
46.Santhoshkumari,
47.Malliga,
48.Mailliammal,
49.Deepa,
50.Sangeetha,
51.Kasiyammal,
52.Amulu,
53.Thilakam,
54.Thamizharasi,
55.Manimegalai,
56.Unnaamalai,
57.Nithya,
58.Vengadesan,
59.Thenmozhi,
60.Karpagam,
61.Pottukannu,
62.Suguna,
63.Kamala,
64.Kasthuri,
65.Dhanalakshmi,
66.S.Selvi,
67.Kassiyammal,
68.Banumathi,
69.Kaniyammal,
70.Jayamani,
71.Bhuvaneswari,
72.Sathya,
73.Mariyammal,
74.Neelavathi,
75.Vijaya,
76.S.Selvi,
77.Vijayakumari,
78.Amsa,
79.Poongodi,
80.Chandhira,
81.Santhi,
82.Saroja,
83.Govinthammal Kannan,
84.V.Meena,
85.Subbammal,
86.Thanam,
87.Anandhi,
88.Nithya.B,
89.Kanimozhi,
90.Kamatchi,
91.Bharathi,
92.Anajali,
93.Muniyammal,
94.Sasikala,
95.Kalai Selvi,
96.Sarasu,
97.Kamala,
98.Malliga,
99.Selvi,
100.Sudhakar,
101.Iruchammal,
102.Sagunthala,
103.Mangai,
104.Savithri,
105.Subash Chandra Bose,
106.Kasiyammal,
107.Elumalai Bodi,
108.Arumugam,
109.Ammachi,
110.Lakshmi,
111.Muthammal,
112.Amudha,
113.Chakkaravathi,
114.G.Lakshmi,
115.Susila,
116.Mangammal,
117.M.Selvakumari,
118.Padmavathi,
119.Babu,
120.Bhuvaneswari,
121.Prema,
122.Seenuvasan,
123.Adhilakshmi,
124.Sarasu,
125.Valli,
126.Amutha,
127.Bhavani, 128.Mala,
129.M.Pachaiammal,
130.Kalima,
131.Saritha,
132.Alamelu Narasimmam,
133.Narayanasamy,
134.Bakkiyam Ramamoorthy,
135.Anusuya.E,
136.P.Thulasidas Patel,
137.Sri Balaji Vidyapeeth,
A Registered Trust, Represented By Its
Chairman, Mr.M.K.Rajagopalan, Office At Sbv Campus, Pillaiyarkuppam, Pondicherry 607 402.
138.Jayalakshmi,
139. S.Panchali,
140. E.Amurdham,
141. P.Ponni,
142. M.Kaliyamoorthy,
143. S.Sathya,
144. S.Pazhaniammal,
145. M.Kalaivani,
146. E.Vijaya,
147. S.Babu,
148. M.Sundhari,
149. G.Thopalan,
150. E.Subbu,
151. M.Selvam,
152. S.Muniyammal,
153. M.Sarala,
154.Kalaiyarasi,
155. S.Devendran,
156. N.Uma,
157. B.Padma,
158. N.Selvi,
159. K.Pavadai,
160. V.Pongavanam,
161. E.Lakshmi,162.K.Govindarasu,
163. R.Pavunammal,
164. K.Subramani,
165. G.Mani,
166. K.Veerappan,
167. G.Nagappan,
168.Ramachandran,
169. V.Bhavani,
170. N.Narayanasamy,
171. V.Amudha,
172. A.Yasodha,
173. S.Pottukanni,
174. A.Sivagami
175. N.Srinivasan
176. A.Ravi
177. T.Sathya
178. C.Thenmozhi
179.Ramudu 180.S.Kasthuri
181. K.Vellachi
182. S.Amudha
183. N.Subbammal
184. V.Kullammal
185. P.Thamizharasi
186. P.Mannagatti
187.Mangaiammal
188. A.Chandran
189. D.Valli
190. M.Kasiyammal
191. E.Kasiyammal
192. S.Rajamani
193. B.Elumalai
194. P.Vijay
195. A.Kanthamani
196.Mrs.Samtha Kothari
197.Mr.D.Naresh Kothari 198.The Tamil Nadu State Legal Services
Authority, Rep.By Its Member Secretary, Madras High Court Buildings Complex, Chennai.104.
199.Pala.Vellaisamy
200.M.R.Kalimuthu
201. Manimuthu
202. Thangavel
[Impleaded vide order dated 27.10.2025 in WMP.No.38743 of 2025]
Respondent(s)
PRAYER
Directing the respondents 1 to 3 to allow the sale of the assets of the 4th respondent through an Hon’ble Retired Judge of this Court or an Advocate Commissioner appointed by this Court to settle the depositors of the 4th respondent.
For Petitioner(s): No appearance
——————————————————-
Mr.C.Manichankar
Senior Counsel &
Mr.M.S.Krishnan
Senior Counsel
Amicus Curiae
Mr.B.Dinesh
Administrator Committee For Respondent(s):
Mr.P.Kumaresan
Additional Advocate General asst by Mr.M.Babamuthumeeran Additional Public Prosecutor for R3
Mr.S.Dhakshnamoorthy for R4
Mr.Rajnish Pathiyil for R14
Mr.A.Suresh Sakthimurugan for R17
Mr.N.k.Ponraj for R201 & 202
No appearance for R1, 2, 5,6, 7,
12, 13, 15, 16, 18 to 197, 199 & 200
ORDER
(Order of the Court was made by S.M.Subramaniam J.)
Disc Assets Lead India Limited and its sister concerns, are finance companies, collected deposits from public at large and not repaid the matured deposits along with interest as per agreement. The depositors instituted legal proceedings to prevent the said company from collecting money from the public and to repay the deposits due to by the investors.
2. Learned Additional Public Prosecutor would bring it to the notice of this Court that 12,38,000 complaints have been received approximately, and the amount involved is about Rs.950 crores. Properties of the company, its Managing Director, and Directors are under attachment, and few properties had been sold by the Administrator’s Committee headed by the Hon’ble former Chief Justice of Jammu and Kashmir High Court. The Administrator’s Committee made earnest efforts to realise money by auctioning the properties. Amount to the tune of Rs.263,54,37,915/- has been deposited in Indian Bank, Madras High Court Branch. Huge documents are maintained by the Administrator’s Committee.
3. The criminal case registered by the police is pending on the file of the
Special Court, constituted under Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act,1997 at Madurai (Special Court under TNPID Act, Madurai). Trial has to be commenced by Special Court under TNPID Act at Madurai. This Court appointed Administrator’s Committee to protect the investments made by innocent depositors and to ensure speedy remedies to the investors.
4. The Chairman of Administrator’s Committee filed a final report setting out facts, amounts recovered, and the details regarding deposits etc. In Paragraph No. 21 of final report, the Administrator’s Committee has stated as follows,
“It is therefore prayed that this Hon’ble Court may permit the committee to handover available land documents, the claim forms, two CD’s and pen drive received from the erstwhile Managing Director given through DSP/10 and order transfer of the amount
lying in the Account of the Administrator’s Committee in savings bank account (now changed by the Bank as Current Account) number 6578025810 of Indian Bank, Madras High Court Branch, either to the TNPID Court Madurai or taking note of the number of
investors and huge amount of money to be
disbursed, to any other Court which may be specially empowered by this Hon’ble Court, to receive the same and proceed further with sale of remaining properties of Disc Assets Lead India Limited, Ayan Marketing & Dal Provisions and disburse the
proportionate amount to the depositors / legal heirs to be identified and pass such other orders as this
court may deem fit and thus render Justice.”
5. Subsequent to final report, a memo has been filed on 01.08.2025 by the Chairman of the Administrator’s Committee, which reads as under,
“In the above writ petitions, the First Bench of
this Hon’ble Court, by order dated 11.10.2017, appointed the Administrator Committee to sell the properties of Disc Assets Lead India Limited, its sister concerns, directors and distribute the investors either in full or on prorata basis, depending on the amounts to be realized. I was appointed as the Chairman of the Administrator Committee and I have served as the Chairman for 91 months. I have filed 12 reports and explained about the sale of properties
and about fixed deposits made from the sale proceeds in the Indian Bank Madras High court
branch.
I am unable to continue as the Chairman of the Administrator Committee due to personal and other reasons. Hence it is prayed that this Hon’ble Court may be pleased to relieve me as the Chairman of the
Administrator Committee and thus render justice.”
6. Distribution of money to the depositors/investors is a herculean task, and to be undertaken by the Special Court under TNPID Act. There may be claims and counter-claims either by the original investors or by their legal heirs or by other parties. These disputes cannot be resolved by the Administrator’s Committee, as it involves legal implications and rights of the parties. That apart, the Act contemplates that such adjudication ought to be done by following procedures as contemplated under TNPID Act and Rules framed thereunder. Therefore, such an exercise need not be delegated to the Administrator’s Committee by the High Court, as it may result in causing prejudice to the investors or result in miscarriage of justice. Thus, the procedures set out under the Act and Rules are to be scrupulously followed by the Special Court for the purpose of disposal of the case and to return back money to the investors in full or proportionately, based on their respective claim petitions filed, by verifying the records, and by following the procedures.
7. It is brought to the notice of this Court that some more properties are yet to be sold, and in this regard, TNPID Court has to take all appropriate actions to ensure that those properties are sold by following the procedures. The amounts already deposited by the Administrator’s Committee in Indian Bank, shall be distributed to the investors proportionately, based on their respective claims, without causing any undue delay, and the final claim, if any, pending may be settled after disposal of the remaining properties or otherwise, as the case may be.
8. Since the Administrator’s Committee has filed a final report and requested that all documents may be handed over to the Special Court under TNPID Act, Madurai, including the deposits made by the Administrator’s Committee, it would be appropriate for this Court to consider the said request made by the Administrator’s Committee in the best interest of the victims.
9. Learned Additional Public Prosecutor would submit that
Mr.R.Rajamurali, Deputy Superintendent of Police, Economic Offences Wing, Madurai, has investigated the present case and an additional charge sheet is going to be filed soon by the investigating officer.
10. (i) Mr.R.Rajamurali, Deputy Superintendent of Police, Economic Offences Wing, Madurai is directed to collect all original and other documents and the materials available, if any, from the Administrator’s Committee and hand it over to the Presiding Officer, Special Court under TNPID Act, Madurai within a period of 3 weeks from the date of receipt of a copy of this order.
(ii) The Presiding Officer, Special Court under TNPID Act, Madurai, shall ensure that the documents and materials received from Mr.R.Rajamurali, Deputy Superintendent of Police, Economic Offences Wing, Madurai are kept in safe custody for conducting trial in the criminal case, pending in CC.No.9 of 2019.
(iii) Till such time, the documents are handed over to Mr.R.Rajamurali, Deputy Superintendent of Police, Economic Offences Wing, Madurai, the police protection already provided must be continued.
(iv) The amount of Rs.263,54,37,915/- deposited in Indian Bank, High
Court Branch, Chennai – 600 104, is directed to be transferred to the credit of CC.No.9 of 2019 on the file of the Special Court under TNPID Act, Madurai, within a period of 3 weeks from the date of receipt of a copy of this order.
(v) On receipt of the said amount, the Presiding Officer, Special Court under TNPID Act, Madurai, shall deposit the same in interest-bearing fixed deposit scheme in any one of the nationalized bank and to be renewed periodically until amounts are dispersed/settled in favour of the Creditors/investors.
(vi) In this regard, the Administrator’s committee may issue necessary authorisation or the procedures required to be adopted by Indian bank, High Court Branch, Chennai to transfer the deposits.
(vii) In respect of claim petitions already filed before the Committee, along with the original documents, if any, the Special Court under TNPID Act, Madurai, may consider them and take necessary actions to disburse amounts proportionately, following the procedures under the Act and Rules.
(viii) The Principal Secretary to Government, Revenue Department, Fort St.George, Chennai – 600 009 shall ensure that the competent authorities contemplated under TNPID Act are appointed for taking possession and selling of the remaining properties, and deposit the money before TNPID Court and to discharge all functions, including disposal as expeditiously as possible.
11. The depositors/investors are at liberty to file appropriate applications/petitions before the TNPID Court for the purpose of realization of their money and to redress their grievances, if any, exists.
12. Consequently, the writ petition is disposed of. No costs. The connected miscellaneous petitions, if any, are closed.
(S.M.SUBRAMANIAM J.)(MOHAMMED SHAFFIQ J.)
27-10-2025
gd
Index:Yes/No
Speaking/Non-speaking order
Internet:Yes
Neutral Citation:Yes/No
To
1.The Securities Exchange Board of India, Southern Regional Office at Overseas Towers, 7th Floor, No.756-L, Anna Salai, Chennai-2
2.The Inspector General of
Registration, No.100, Santhome High Road, Pattinapakkam, Chennai-28
3.The Inspector of Police
E.O.W.II Viswanathapuram, Madurai 625 104
4.The Tamil Nadu State Legal Services
Authority, Rep.By Its Member Secretary, Madras High Court
Buildings Complex, Chennai.104.
S.M.SUBRAMANIAM J.
AND
MOHAMMED SHAFFIQ J. gd
WP No. 8084 of 2017

27-10-2025