TaxTMI 
TaxTMI 
1988 (3) TMI 369
X X X X Extracts X X X X
X X X X Extracts X X X X
....en inviting members of the public to offer their bids on the same terms and conditions on which the offers were invited earlier. (2)In the fresh advertisement, it shall be stated that offer should not be for an amount less than Rs. 13,25,000. (3)After the offers are received, the provisional liquidator will open the sealed covers in the court and seek further directions with respect to confirmation of sale. It is made clear that it will be open to this court to accept that offer which this court finds to be most advantageous and it will not be open to anyone to claim that because his offer is the highest, it must be accepted by this court. (4)The official liquidator shall return to the two offerers their demand draft of Rs. 50,000 each. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re convinced that the price for the articles involved in this case will be much higher than the one offered by the appellant before the provisional liquidator. The learned judge, after elaborating all the facts and also the cases cited by Mr. Shah, learned counsel appearing for the appellant, gave the aforesaid directions, which we have extracted above. Incidentaly, it has to be noted that the officer of the Dena Bank has also valued the 31 items of the properties at Rs. 31.27 lakhs. Against the order passed by the company judge in Company Application No. 29 of 1988, this O. J. appeal has been filed. Mr. Shah, learned counsel appearing for the appellant, mainly contended that the direction dated December 11, 1987, has specifically given po....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sed by the learned judge. It is clear from the facts of the present case that one of the highest bidders, who is the appellant herein, has raised his bid from Rs. 3,25,000 to Rs. 13,25,000 and yet another bidder has raised his bid from Rs. 2,00,000 to Rs. 13,00,000. When the matter was subsequently referred to the company court by the provisional liquidator, two other offerers came forward for the purpose of giving still higher offers. Considering these glaring facts, which were before the court, the learned judge thought it fit to give the directions which we have quoted above. It is a clear case where inadequate price has been offered by the appellant at the intial stage, when he in response to the advertisement offered his price for the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... proposed exercise of any of the powers conferred by this section". Rule 272 of the Companies (Court) Rules, 1959, reads as follows: "272. Sale to be subject to sanction and to confirmation by court.-Unless the court otherwise orders, no property belonging to company which is being wound-up by the court shall be sold by the official liquidator without the previous sanction of the court, and every sale shall be subject to confirmation by the court." Thus, reading both the section and the rule, it is clear that the control of the court for the purpose of deciding as to the genuineness of sale and confirming the same is paramount and it cannot be said that the court has abdicated its power by simply asking the provisional liquidator to sell ....