Muneeshwaran vs. State Of Tamilnadu Rep By Inspector Of Police, Bazaar
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The petitioner, Muneeshwaran, filed a Criminal Revision Case before the Madurai Bench of the Madras High Court challenging an order passed by the Judicial Magistrate No. I, Ramanathapuram. The petitioner sought to modify an onerous condition imposed by the Magistrate in Crl.M.P. No. 648 of 2026, dated June 22, 2026. This condition required the petitioner to produce a solvency certificate. The petitioner argued that due to a Government Order (G.O.(Ms)No.282) issued by the Revenue and Disaster Management Department on May 26, 2026, revenue authorities were no longer issuing solvency certificates, making compliance with the Magistrate's order impossible. The petitioner requested the court to strike off this condition.
Held
The Court allowed the Criminal Revision Case, modifying the condition imposed by the Judicial Magistrate No. I, Ramanathapuram. The Court noted that the G.O.(Ms)No.282 dated 26.05.2026, which was based on the recommendations of an Empowered Committee, highlighted the challenges in obtaining solvency certificates and their diminishing relevance. The Committee observed that solvency certificates were no longer considered a primary indicator of financial stability for project execution. Instead, a list of alternative documents, including Income Tax Clearance Certificate, Auditor's Certificate, Audited Accounts certificate, Annual turnover report, Recent Audited Balance Sheets, GST and VAT Clearance Certificate, and others, were identified as more reliable indicators of financial strength. The G.O. mandated the discontinuation of the existing process for issuing solvency certificates and instructed the Finance Department to amend relevant rules to incorporate these alternatives. Consequently, the Court directed the petitioner to produce a Bank Guarantee for Rs. 5,00,000/- instead of a solvency certificate to establish financial stability, aligning with the spirit of the G.O.
Key Issues
1. Whether the condition imposed by the Judicial Magistrate No. I, Ramanathapuram, requiring the petitioner to produce a solvency certificate is legally sustainable, given the subsequent Government Order that discontinues the issuance of such certificates and provides alternative documents to establish financial stability? The petitioner contended that the G.O.(Ms)No.282 dated 26.05.2026 clearly indicates that solvency certificates are no longer being issued by revenue authorities. Therefore, the condition imposed by the Magistrate is impossible to comply with and should be struck off. The petitioner relied on the G.O. to support this argument. The respondent, State of Tamil Nadu, represented by the Inspector of Police, did not record any specific arguments against the petitioner's plea in the judgment. The judgment notes the submission of the petitioner and then proceeds to analyze the G.O.
Sections Cited
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Cause title — parties, addresses and appearances
ORDER This Criminal Revision Case is filed seeking to call for the records pertaining to the order passed in Crl.M.P.No. 648 of 2026 dated 22.06.2026 on the file of the Judicial Magistrate No.I, Ramanathapuram to Modify the onerous condition No.2 (2).
The learned counsel for the petitioner submitted that pursuant to the issuance of G.O.(Ms)No.282 the Revenue and Disaster Management Department Revenue Administration Wing RA-3(2) Section, dated 26.05.2026, the revenue authorities, are not issuing solvency certificates and sought the indulgence of this Code to struck off the first condition.
A careful perusal of the above said GO, would make it clear that instead of solvency, the following documents can be considered.
The current challenges observed in the existing process for the issuance of Solvency Certificate has been placed before the Empowered Committee. The Empowered Committee in its meeting on 01.04.2025 perused and considered the minutes of Screening committee on the 2/6 https://www.mhc.tn.gov.in/judis possibilitieso f simplification of procedures in issuing Solvency Certificate as follows:- (I) It was discussed that citizens faced significant challenges in obtaining a Solvency Certificate due to its one- time validity, requiring frequent reapplications whenever needed. Also the current process involves extensive documentation, difficulties in acquiring key certificates such as the Liability Amount Certificate and Mortgage Certificate and delays caused by the discretionary authority of officials, making the entire procedure complex and inconsistent. (ii) More so, it was observed that the Solvency Certificate is no longer relevant and relied upon as an indicator of financial stability or strength for the execution of projects. Actual financial stability and strength is often determined by other alternatives that ar mentioned as tender conditions and includes a combination of some of the following:- a) Income Tax Clearance Certificate b) Auditor's Certificate c) Audited Accounts certificate d) Annual turnover report e) Recent Audited Balance Sheets f) GST and VAT Clearance Certificate g) Solvency Certificate / Capability Certificate from banks 3/6 https://www.mhc.tn.gov.in/judis h) Bank Account Statement i) Bank Guarantee j) IT Returns k) Credit Line Certificate l) PAN Card m) Collateral documents that are kept for the issue of loans n) CRISIL rating and the like. (III) These alternatives have made the Solvency Certificate redundant and all institutions tend not to rely on it for financial strength and stability to execute project or for other purposes. Instead, the alternatives submitted above have become the indicator of financial strength and stability and appear to be far more reliable and binding on the parties involved. (IV) After a detailed discussion, the Committee unanimusly decided. * That the existing process for issuance of Solvency Certificate be discontinued. * That the Finance Department shall issue the necessary instructions to amend the Tamil Nadu Transparency in Tender Rules, 2000 and other prevailing orders accordingly in the light of the available currently relevant alternatives." The above documents can be utilised for determining actual financial stability and strength. 4/6 https://www.mhc.tn.gov.in/judis
In view of the above, this Criminal Revision Case is allowed by modifying the first condition of the order passed by the learned Judicial Magistrate No.1, Ramanathapuram District, in Crl.M.P.No. 648 of 2026 dated 22.06.2026, directing the petitioner to produce Bank Guarantee for an amount of Rs.5,00,000/- as per the above G.O., instead of producing solvency certificate, to establish his actual financial stability.
2026 NCC : yes / no Index : yes / no pnn To 1.The Judicial Magistrate No.1, Ramanathapuram District.
The Inspector of Police, Bazaar Police Station, Ramanathapuram Distirct. Cr.No. 188 of 2026. 3. The Additional Public Prosecutor, Madurai Bench of Madras High Court, Madurai. 5/6 https://www.mhc.tn.gov.in/judis L. VICTORIA GOWRI, J. pnn
ORDER IN CRL RC(MD) No.1331 of 2026 Date : 10/08/2026 6/6 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.