Madras HC cancels land sale deed executed by fake arbitration centre

A Division Bench of Madras HC comprising Justice PN Prakash and Justice S Srimathy had cancelled the sale deed on allowing a writ petition filed by late KS Jagannathan, who was a resident of Adhiyamankottai village and his legal heirs are conducting the case after him.

The petitioners prayed for a direction to the district registrar, Dharmapuri district to cancel the sale deed of 18.16 acres of land owned by them executed on 02.05.2017 in a fake arbitration proceeding in favour of one Rajendran by one advocate K Rajaram.

On recording the submissions, the bench held that the case as one of the extraordinary cases inasmuch as an arbitration centre has been established in Dharmapuri to make ordinary people believe that it is a regular court and in that premises, an award has been passed in respect of the property of KS Jagannathan in an alleged money dispute between Nagaraj and Rajendran.

“For the above writ petition is allowed and the sale deed dated 02.05.2017 registered on the file of Sub Registrar, Dharmapuri (West), stands quashed. We direct the Sub-Registrar to cancel the sale deed dated 02.05.2017 registered as on the file of Sub Registrar, Dharmapuri (West) and also make appropriate entries in the encumbrance register so that the cancellation towards sale deed appears therein, “ the Justice PN Prakash held.

The case is pertaining to the act of Nagaraj, a local politician who had entered into a loan agreement with Rajendran on 05.04.2004 and received Rs.40 lakhs by giving the property of Jagannathan as security. Nagaraj and Rajendran were in collusion and contrived a dispute, appointed K Rajaram, advocate as an arbitrator, based on which, Rajaram passed an award dated 31.10.2014 in a fake arbitration proceeding directing execution of a sale deed in respect of 8 acres and 16 cents of Jagannathan’s property in favour of Rajendran.

The arbitration proceedings have been conducted by A R Chandran, who was running ‘Asia - Pacific Arbitration Centre’ with Government of India Emblem in Dharmapuri District, where Paneerselvam acted as bailiff. Kumar and Raja acted as Chandran’s personal gunmen to give credibility. Police have arrested all the accused.