Liquidation sale control: court confirms tug sales, secures proceeds, treats necessary expenses as liquidation costs, and orders sale of the third tug.

In a liquidation sale, the court confirmed the sale of two tugs and directed issuance of the sale certificate to the purchaser. The sale proceeds were to be deposited with the Official Liquidator and kept in fixed deposit, with separate accounts maintained for expenses, and no disbursement was permitted without further orders. Necessary charges, including port dues, advertisement expenses and manning expenses, were treated as liquidation expenses recoverable from the proceeds. The third tug was directed to be advertised for sale at the reserved price fixed on valuation, with inspection allowed to prospective purchasers and provisional manning arrangements made. Priority claims, including maritime liens and maritime claims, were left for later determination.

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Issues: Whether the sale of the two tugs was to be confirmed and the related sale proceeds, expenses, and further sale process for the third tug were to be regulated.

Analysis: The sale of the two tugs was confirmed and the sale certificate was directed to be issued to the purchaser. The sale consideration was directed to be deposited with the Official Liquidator and invested in fixed deposit, with separate accounts to be maintained for expenses. The Official Liquidator was restrained from disbursing the sale proceeds without further orders, while claims against the proceeds, including maritime liens and maritime claims, were left to be dealt with in accordance with the applicable priority of claims. Charges such as port dues, advertisement expenses, and manning expenses were treated as liquidation expenses recoverable from the sale proceeds. The third vessel was also directed to be advertised for sale at the reserved price fixed on the basis of valuation, with inspection to prospective purchasers and provisional arrangements for manning.

Conclusion: The sale of the two tugs was confirmed, directions were issued for preservation and controlled disbursement of the sale proceeds, and the third tug was directed to be put up for sale.

Final Conclusion: The order finally settled the immediate sale process and interim handling of proceeds and expenses, while leaving the parties' substantive rights to the sale proceeds open for future adjudication.

Ratio Decidendi: In a liquidation sale, the court may confirm the sale, regulate custody and investment of sale proceeds, treat necessary expenses as liquidation expenses, and defer final distribution of proceeds and priority claims for later determination.

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