2010 (8) TMI 1084 - HC - Companies Law

Court approves sale of land to auction purchaser, exempts from liabilities, directs recovery of dues, and funds distribution to claimants.

The Court confirmed the sale of land at plot no.1037 to Mahakali Scrap Traders for &8377; 2.45 Crores after an inter-se bidding process. The auction ... - Issues involved: Confirmation of sale of land, inter-se bidding process, liabilities towards pre-liquidation period, payment of dues to Commercial Tax Officer, distribution of sale consideration among claimants.Confirmation of sale of land: The Official Liquidator sought confirmation of the sale of land at plot no.1037 of Survey No. 1037/p and 1038/p of Village Rajpur, Taluka- Kadi, District Mehsana. Despite an initial offer of &8377; 1.15 Crores by Mahakali Scrap Traders, the Court directed for a re-advertisement with an upset price of &8377; 1.15 Crores to attract higher bids due to inflationary trends. Subsequently, after inter-se bidding, the land was confirmed to Mahakali Scrap Traders for &8377; 2.45 Crores, with certain modifications in terms and conditions.Inter-se bidding process: Following the Court's order, the Official Liquidator published advertisements and invited offers from interested parties. Out of 9 participants, 3 opted out of the bidding process, while the rest agreed to pay late entry charges to participate. Ultimately, Mahakali Scrap Traders emerged as the highest bidder at &8377; 2.45 Crores, leading to the confirmation of the sale in their favor.Liabilities towards pre-liquidation period: The auction purchaser was exempted from discharging liabilities towards the pre-liquidation period as per the tender document's condition. This exemption was granted as part of the modifications made to the terms and conditions of the sale.Payment of dues to Commercial Tax Officer: An affidavit filed by the Commercial Tax Officer highlighted an unpaid amount of &8377; 4,13,787 by the Company in liquidation as of December 31, 2009. The Commercial Tax Officer was directed to lodge a claim before the Official Liquidator for the recovery of these dues, which would be paid in accordance with Section 530 of the Companies Act, 1956.Distribution of sale consideration among claimants: Upon realization of the full sale consideration, the Official Liquidator was instructed to initiate the process for distribution among the claimants. This step was crucial for ensuring the fair and timely distribution of funds to the rightful parties.In conclusion, the Official Liquidator's report was disposed of in accordance with the specified directions and observations, thereby resolving the issues related to the sale of land, inter-se bidding process, liabilities, payment of dues, and distribution of sale consideration among claimants.