STATE REP. REPRESENTED BY PRINCIPAL SECRETARY TO GOVT. HOME (POLICE XIX) DEPT. vs K S PALANICHAMY .

The Supreme Court examined the validity of the High Court's order setting aside the Government Order (G.O. Ms. No. 989) dated 24.12.2012, which attached the properties of partners of a financial establishment under Section 3 of the Tamil Nadu Protection of Interests of Depositors (In Financial Establishments) Act, 1997. The Court held that the State Government has the authority to attach properties of financial establishments that default on deposits, as per Section 3 of the Act, and emphasized the need for the competent authority to act in accordance with the provisions of Section 4. The Supreme Court allowed the appeal, reinstating the G.O. and affirming the attachment of properties.