2018 (1) TMI 652 - HC - Companies Law

Court approves sale committee recommendations for assets in liquidation, including upset prices and payment permissions.

Official Liquidator of M/s Testeels Ltd (In Liqn) Versus Central Bank of India And 3

The Court approved the recommendations made by the sale committee regarding the sale of assets and properties of the company in liquidation, including ... Sale of the assets and properties of the company in liquidation - Held that:- As considered the contents of the present report with the copy of the supplementary valuation report dated 14.09.2017, as also the minutes of the meeting of the sale committee at Annexure – F, finds that the prayers made in the present report could be granted. Accordingly, it is directed that for sale of the assets and properties of the company in liquidation, the upset price and EMD shall as recommended by the sale committee. The schedule programme for sale of the assets and properties of the company in liquidation shall be as stated above in para-4. The Official Liquidator shall issue advertisement in daily newspapers “Gujarat Samachar” in all editions of the State of Gujarat in Gujarati script and in “Times of India” in English script in Ahmedabad edition for inviting offers for sale of land of the company in liquidation. The Official Liquidator is also permitted to make payment to the concerned Advertising Agency on receipt of the bill from such agency towards advertising expenses. The action taken by the Official Liquidator for deploying 06 (six) security guards of M/s.Shubham Protection Force as per the decision taken by the members of the sale committee held on 25.05.2017 and 14.09.2017 is ratified and the Official Liquidator is permitted to make monthly payment of ₹ 70,200/- inclusive of all taxes to the said security agency for providing security guards to safeguard the assets and properties of the company in liquidation from the funds available with the Official Liquidator in the company’s account. Issues:1. Fixing upset price and EMD for the sale of land in liquidation.2. Direction for advertisement in newspapers for inviting offers.3. Permission for payment from the company's account for advertisement.4. Ratification of action for deploying security guards.5. Other orders and directions.Issue 1:The report sought the fixing of upset price and EMD for the sale of land in liquidation based on a valuation report. The valuation report by M/s. Pranav Parikh & Associates was considered, and the sale committee recommended specific upset prices and EMDs for different properties. The Court accepted the recommendations and directed the upset price and EMD as suggested by the sale committee.Issue 2:The report requested the Court to direct the Official Liquidator to issue advertisements in newspapers for inviting offers for the sale of land in liquidation. The sale committee recommended giving advertisements in two newspapers, one in Gujarati and the other in English. The Court approved the advertisement plan in 'Gujarat Samachar' and 'Times of India' for inviting offers for the sale of the land.Issue 3:Permission was sought for the Official Liquidator to make payments for advertisements from the company's account upon receiving the bill. The Court permitted the Official Liquidator to make payments to the concerned Advertising Agency upon bill receipt towards advertising expenses.Issue 4:The report sought ratification of the action taken by the Official Liquidator for deploying security guards to safeguard the assets and properties of the company in liquidation. The Court ratified the action and permitted the Official Liquidator to make monthly payments for security services from the available funds.Issue 5:Apart from the specific issues mentioned, the report also sought other orders and directions as deemed just and appropriate. The Court, after considering the report, supplementary valuation report, and minutes of the sale committee meeting, granted the prayers made in the report, including the upset price and EMD recommendations, the sale program schedule, advertisement directions, and ratification of security guard deployment.In conclusion, the Court disposed of the report accordingly, approving the recommendations made by the sale committee regarding the sale of assets and properties of the company in liquidation, including upset prices, EMD, advertisement plans, and security guard deployment, while also permitting necessary payments and actions from the company's account.