TaxTMI 
TaxTMI 
2008 (9) TMI 560
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....ficial Liquidator's Report No. 143 of 2007 was permitted to make a higher bid for the property of Global Arya Industries Ltd. (hereinafter to be referred to as 'the Company in liquidation'), whose properties had already been put to auction by the Company Court and sale confirmed in favour of the appellant herein. 2. The facts briefly stated : the properties of the Company in liquidation were valued at a sum of Rs. 64,00,000 as per report of the valuer and the highest offer received by the Sale Committee was of Rs. 67,00,000. Thereafter, the appellant herein along with others was permitted to make a higher offer by paying late entry charges. It is an accepted position that respondent No. 1 herein was also a party to the auction proceed....
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....ustries Ltd. Further in case of inter se bidding, please inform us to enable us to participate and revise further our offer thereof." 5. Pursuant thereto respondent No. 1 herein moved Company Application No. 450 of 2007 which came to be rejected by this Court on 11-10-2007 by recording as under : "4. Since the applicant herein who was one of the participant, raised the offer only upto Rs. 125 lakhs and the highest offer of one Bipin Lathia for Rs. 127 lakhs was accepted. It is only by way of an afterthought, the applicant has come out with the present application stating that the applicant is desirous to purchase the property by offering the amount of Rs. 141 lakhs. 5. In normal circumstances, once the sale is confirmed, unless,....
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.... case of Sarvariya Exports Ltd. v. Official Liquidator of Urmi Oil Ltd. on 11-8-2008 to submit that this Court has considered the entire case law and come to the conclusion that a confirmed sale cannot be set aside unless and until the relevant tests permitting such an exercise are shown to be satisfied and merely an offer of higher price cannot constitute a valid ground for setting aside a confirmed sale. 8. As against that the learned advocate appearing for respondent No. 1 has submitted that the background in which the second Company Application came to be moved by respondent No. 1 had been appreciated by the Company Court and on facts respondent No. 1 had made out a case in its favour. That respondent No. 1 had raised its offer from ....
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....ring pendency of the appeal. The said orders read as under : Date: 28-2-2008 It is stated that when the property was auctioned, offer of Rs. 1.51 crore was given by respondent No. 4, and option was given to the appellant if he is prepared to pay Rs. 1.51 crores. Counsel for the appellant prays for time to seek instruction from his client, whether appellant is prepared to pay Rs. 1.51 crores. List on 3-3-2008. Date 3-3-2008 On 28-2-2008, when some other party offered Rs. 1.50 crores, we gave the option to the appellant to offer similar amount, as the Court felt that preference should be given to the appellant, if similar amount is offered by the appellant. Today, respondent No. 1 Shradhha Aromatics Pvt. Ltd. offered Rs. 1.6....
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....terim order is final and is always subject to the final order that may be made. 11. It is necessary to note that the appeal was admitted on 27-12-2007 but except for a direction to the Official Liquidator not to hand over possession of the property in question to the buyer there was no other order made by this Court setting aside any of the earlier orders. In the circumstances, when the appellant had challenged the order dated 27-11-2007 there was no question of the Court, during pendency of the appeal, calling upon the parties to make inter se bids without first quashing and setting aside an existing order. That order was favouring respondent No. 1 and was operating to the prejudice to the appellant. Moreover, there cannot be inter se b....
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.... auction sale will ever be complete because always somebody can come after the auction or its confirmation offering a higher amount. 32. It could have been a different matter if the auction had been held without adequate publicity in well-known newspapers having wide circulation, but where the auction sale was done after wide publicity, then setting aside the sale after its confirmation will create huge problems. When an auction sale is advertised in well-known newspapers having wide circulation, all eligible persons can come and bid for the same, and they will be themselves be to blame if they do not come forward to bid at the time of the auction. They cannot ordinarily later on be allowed after the bidding (or confirmation) is over to ....