2008 (2) TMI 625

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....ment of interest on the amount of earnest money of Rs. 4540,000 in C. A. No. 691 of 2007 and Rs. 45,00,000 in C. A. No. 691 of 2007 for the period the amount remained with the official liquidator, i.e., from February 27, 2006, to August 10, 2007. Pursuant to the order dated January 12, 2006, passed by this court in Company Application No. 939 of 2005 in Company Petition No. 50 of 1999, a sale notice was published in The Tribune (Chandigarh edition), Daink Bhaskar (Chandigarh edition), Ajit (Jalandhar edition), Amur Ujala (Kanpur edition), The Economic Times (Mumbai and Delhi editions) and Daily Thanti (Chennai) on January 25, 2006, for the sale of the assets/properties of M/s. Domino Leathers Ltd. (in liquidation). The applicants also subm....

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....h more amount than the applicants. While accepting the highest bids, vide orders dated July 26, 2007 and August 2, 2007, direction for refund of the earnest money paid by unsuccessful bidders including applicants in these applications also came to be passed. In both these orders, there was no direction for payment of interest. Learned counsel for the applicants has relied upon the case of Industrial Credit and Investment Corporation of India Ltd. v. Official Liquidator, H. C, Calcutta, AIR 1994 SC 167, wherein the hon'ble Supreme Court while setting aside the sale and ordering re-sale of the property of the company in liquidation, has observed as under (page 169): "6. As a consequence of the directions made by us, the deposits made by Lax....

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....nd 3, the appellant is entitled to get interest at 18 per cent, per annum on the amount deposited by the appellant and the sale should be so, conducted keeping in view the interest liability. From the amount secured by sale, apart from discharging the liabilities fastened on the lands, the interest also should be repaid to the appellant from the date of the deposit till date of repayment to the appellant." No doubt in both the aforesaid judgments, the hon'ble Supreme Court directed the refund of money with interest. However, in none of these cases, there was any stipulation in the sale/auction notice like in the present case. Conditions Nos. 3 and 13 sufficiently conveyed to all the participant bidders that they will not be entitled to int....