No preferential right for a lessee to buy company-in-liquidation land; open auction remains the proper mode of sale.

A lessee of land belonging to a company in liquidation has no preferential right to purchase the property on a capitalised value fixed by the Court. The land remained part of the assets under the control of the Official Liquidator after the winding-up order, and the assets had to be realised for the benefit of creditors and contributories. The property was therefore required to be sold through open auction, with the applicant permitted to participate and the market value to be redetermined for that purpose. The lessee was not entitled to secure transfer outside the auction process.

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Issues: Whether a lessee of land belonging to a company in liquidation has a preferential right to purchase the property and secure transfer on a capitalised value fixed by the Court, or whether the property must be sold through open auction.

Analysis: The land formed part of the assets of the company in liquidation and was under the control of the Official Liquidator after the winding up order. The applicant, being only a lessee, could not claim a superior or preferential right to acquire the property. Since the assets of the company in liquidation had to be realised for the benefit of creditors and contributories, the property was required to be brought to sale through an open auction. The applicant was permitted to participate in that auction, and the market value was to be redetermined for that purpose.

Conclusion: The applicant had no preferential right to purchase the land. The property was directed to be sold in open auction, with the applicant left free to compete in the auction process.

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