Writ Petition No.11079 of 2025 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 28.03.2025 CORAM THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH Writ Petition No.11079 of 2025 SRC Projects Private Limited Represented by its Chief Executive and Managing Director Dr.M.Mahudeswaran ... petitioner Vs 1. The Sub-Collector Mettur Salem District - 636 455. 2. The Tahsildar Omalur Taluk Salem - 636 455. ... Respondents Writ Petition filed under Article 226 of the Constitution of India seeking issuance of a Writ of Certiorarified Mandamus, calling for the entire records of the 1st respondent which culminated in the impugned order dated 31.01.2025 in Na.Ka.170/202/C rejecting the appeal of the petitioner and thereby confirming the order of the 2nd respondent made in Na.Ka.3129/2023/R dated 17.09.2023 and quash the same as illegal, arbitrary and unsustainable and further direct the respondents to transfer patta No.25 for the lands comprised in S.Nos. 4/5A measuring an extent of 2.79 acres, 4/5B measuring an extent of 0.02 Acre and 4/5C measuring an extent of 2.72 acres totally measuring an extent of 5.53 Acres situated at Anaikoundampatti, Omalur Taluk, Salem District to the 1/6 https://www.mhc.tn.gov.in/judis Writ Petition No.11079 of 2025 name of the petitioner herein. For Petitioner : Mr.V.P.Sengottuvel Senior Counsel for Mr.K.R.Nishanth For Respondents : Mr.A.Selvendran Special Government Pleader for R1 and R2 ***** O R D E R This writ petition has been filed challenging the impugned proceedings of the first respondent dated 31.01.2025 confirming the order passed by the second respondent dated 17.09.2023 and for a consequential direction to transfer the patta with respect to the subject property in the name of the petitioner. 2. Heard Mr.V.P.Sengottuvel, learned Senior Counsel appearing for the petitioner and Mr.A.Selvendran, learned Special Government Pleader for the respondents. 3. Originally, the partnership firm was running the business in the name of Sri Ranganathar and Company. Certain properties belonged to the firm. These properties, even though were purchased in the name of partners, since it was treated as the properties of the firm, by virtue of Section 14 of the Indian Partnership Act, 1932, it became the properties of the firm. 2/6 https://www.mhc.tn.gov.in/judis Writ Petition No.11079 of 2025 4. The partners unanimously resolved to convert the partnership firm into a joint stock company. Accordingly, they underwent the process and a company came into existence namely, SRC Projects Private Limited. The assets of the partnership firm vested with the company. 5. The petitioner submitted an application before the second respondent seeking for transfer of existing patta in the name of the company. Such application came to be rejected by the second respondent through proceedings dated 17.09.2023. Aggrieved by the same, an appeal was filed before the first respondent. The first respondent through the impugned proceedings dated 31.01.2025, confirmed the order passed by the second respondent. Aggrieved by the same, the present writ petition has been filed before this Court. 6. The only reason that has been assigned by the first respondent, while rejecting the appeal is extracted hereunder: ',e;neh;tpy; SRI RANGANATHAR & CO g';Fjhuh;fshy;. nkw;go epWtdj;jpw;fhf XkYhh; rhh;gjpthsh; mYtyf Mtz vz;/17 of Book 4 ehs;11/03/2022d;go Vw;gLj;jg;gl;Lss Supplement to deed of Partnership MtzkhdJ/ nkw;go epWtdj;jpw;fhf g';Fjhuh;fshy; Vw;fdnt 19/05/1978. 01/04/1983 kw;Wk; 18/01/1983y; Vw;gLj;jg;gl;l deed of Partnershipf;fhd Jiz 3/6 https://www.mhc.tn.gov.in/judis Writ Petition No.11079 of 2025 Mtzk; vd;gjhYk; nkYk; nkw;go Mtzj;jpy; SRI RANGANATHAR & CO g';Fjhuh;fshy; ,e;jpa epWtd rl;lk; 1956d;go fpuak; bgwhj jdpg;gl;l Kiwapy; Mtz vz;/1246-1989 ehs; 02/06/1989d;go 50y; fpuak; bgwg;gl;l Mizft[z;lk;gl;o fpuhk g[y vz;fs; 4/5A, 5B, 5Cy; bkhj;j tp!;jPh;zk; g[/bcwf;/2/24/0 epyj;ij Supplement to deed of Partnership & SRI RANGANATHAR & CO XkYhh; rhh;gjpthsh; mYtyfj;jpy; chpik ghpkhw;wk; Mfhj Mtzj;jpw;fhd Book 4 mog;gilapy; gjpt[ bra;Js;sjhYk;. kDjhuUf;F gl;lh khWjy; bra;a ,ayhJ vd cj;jutplg;gl;Ls;sJ/' 7. In the considered view of this Court, if the properties originally belong to the firm, which is subsequently converted into a company, Section 575 of the Companies Act, 1956 (Section 368 of the Companies Act, 2013) makes it abundantly clear that the properties will vest in the newly incorporated company without any need for separate conveyance. This fundamental principle of law was not considered by both the authorities and hence, the impugned proceedings of the respondents require the interference of this Court. Both the authorities went wrong in finding that the properties have to be separately conveyed in favour of the company and only then the patta can be transferred in the name of the company. 4/6 https://www.mhc.tn.gov.in/judis Writ Petition No.11079 of 2025 8. In the light of the above discussion, the impugned proceedings of the first respondent dated 31.01.2025 confirming the proceedings of the second respondent dated 17.09.2023 is hereby quashed and there shall be a direction to the first and second respondents to pass appropriate orders and issue patta in the name of the petitioner by mutating the revenue records within a period of four weeks from the date of receipt of a copy of this order. In the result, the Writ Petition is allowed. There shall be no order as to costs. 28.03.2025 Neutral Citation: Yes/No Index: Yes/no Speaking Order/Non-Speaking Order mk To 1. The Sub-Collector Mettur Salem District - 636 455. 2. The Tahsildar Omalur Taluk Salem - 636 455. N.ANAND VENKATESH, J mk 5/6 https://www.mhc.tn.gov.in/judis Writ Petition No.11079 of 2025 Writ Petition No.11079 of 2025 28.03.2025 6/6 https://www.mhc.tn.gov.in/judis