Madras HC cancels the deed of sale of land executed by a fake arbitration center


A Division Bench of Madras HC comprising Judge PN Prakash and Judge S Srimathy had set aside the Deed of Sale allowing a Petition for Writ filed by the late KS Jagannathan, who was a resident of Adhiyamankottai Village and his legal heirs lead the case after him.

The petitioners have sought an instruction from the District Registrar of Dharmapuri District to void the deed of sale of 18.16 acres of land belonging to them executed on 02.05.2017 in a bogus arbitration proceeding in favor of a Rajendran by a lawyer K Rajaram.

While recording the observations, the bench considered the case to be one of the extraordinary cases as an arbitration center was set up in Dharmapuri to make ordinary people believe that it is an ordinary court and at these premises an award has been made in respect of the property of KS Jagannathan in an alleged financial dispute between Nagaraj and Rajendran.

“For the above written request is hereby authorized and the deed of sale dated 02.05.2017 registered in the file of the sub registrar, Dharmapuri (West) is cancelled. We direct the sub registrar to cancel the deed of sale dated 02.05.2017 registered in the file of the Sub-Registrar, Dharmapuri (West) and to also make the appropriate entries in the register of charges so that the cancellation of the deed of sale appears there,” said the Judge PN Prakash held.

The case concerns the deed of Nagaraj, a local politician who entered into a loan agreement with Rajendran on 05.04.2004 and received Rs.40 lakhs by pledging Jagannathan’s property as collateral. Nagaraj and Rajendran were in collusion and organized a dispute, appointed K Rajaram, lawyer as arbitrator, on the basis of which, Rajaram issued an award dated 31.10.2014 in a bogus arbitration proceeding ordering the execution of ‘a deed of sale concerning 8 acres and 16 cents of Jagannathan’s property in favor of Rajendran.

The arbitration proceedings were conducted by AR Chandran, who headed the “Asia-Pacific Arbitration Center” with the Government of India emblem in Dharmapuri district, where Paneerselvam acted as bailiff. Kumar and Raja acted as Chandran’s personal gunmen to lend credibility. The police arrested all the accused.