Company liquidation sale confirmed after valid bidding process, with possession, refunds, and publication expenses ordered in priority.

A court-approved company liquidation sale may be confirmed where notice is duly published, bids are invited, inter se bidding is held, and the highest offer exceeds the reserve price. Where the secured creditor raises no objection and the record shows no challenge from any other quarter, confirmation of the sale follows, with possession to be delivered after receipt of the full consideration. Unsuccessful bidders are entitled to refund of earnest money, and sale-publication expenses may be paid in priority to other debts.

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Issues: Whether the highest bid in the sale conducted by the Official Liquidator was liable to be confirmed and the ancillary reliefs of handing over possession, refund of earnest money to unsuccessful bidders, and payment of sale-publication expenses in priority were to be granted.

Analysis: The application was moved under Section 457(3) of the Companies Act, 1956 read with Rule 9 and Rule 272 of the Companies (Court) Rules, 1959. The sale process had been conducted after publication of notice, bids were invited, inter-se bidding was held, and the highest offer was found to be above the reserve price. The secured creditor, through affidavit, recorded no objection to confirmation of the sale and stated that it had stepped into the shoes of the secured creditor after payment of dues. In the absence of any objection from any quarter, the Court accepted the minutes of the meeting and found no impediment to confirmation of the sale.

Conclusion: The highest bid was confirmed, the Official Liquidator was directed to hand over possession after receipt of the full sale consideration, refund the earnest money of the other bidders, and pay the publication expenses in priority to other debts.

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