TaxTMI 
TaxTMI 
2009 (1) TMI 481
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....al Liquidator ('OL') was directed to take possession of the assets of the said Company. The endeavours to revive the said Company had failed, but the Union of the Employees of the said Company filed an application on 5-5-2005 under sections 529A and 546 of the said Act submitting a proposal for revival of the said Company along with one M/s. Cygnus Developers (P.) Ltd. ('Cygnus'). 2. It is a case of the Employees Union that M/s. Cygnus was directed to deposit a sum of Rs. 10 lakhs on 26-5-2005 with the further direction to deposit an additional sum of Rs. 65 lakhs with the OL. It is further claimed that though a cheque of Rs. 65 lakhs was given to the OL, the same was never presented, but, on the other hand, the application filed by the ....
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....nt Ltd. and the Employees Union. The OL representing the said Company has placed today before us the status of the claims received, which are as under :- Sl. No. Particulars Number of Claims Amount Admitted (In Rs.) 1. Workers including 2 Officers 78 1,81,57,417.83 2. Secured Creditors 1 87,54,076.00 3. Unsecured Creditors 7 71,82,000.00 4. Investors Nil Nil 5. Preferential Claims Nil Nil 6. Claim Rejected 1 - Grand Total 87 3,40,93,493.83 Thus, the aforesaid is the total liability of the said Company and a sum of Rs. 7 crores stands deposited by the successful purchaser for purchase of the said factory premises. 7. A perusal of the ....
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....tate of West Bengal. The Government of West Bengal filed a compliance report dated 2-5-2005 in respect of the demarcation along with maps with the total area under occupation of the said Company being specified as 4.74 acres. 10. Learned Company Judge has, thus, taken note of the fact that the issue of demarcation itself took more than three years and the relevant reports were placed on record. It is only after the maps were filed before the Court an open bid was held on 12-5-2005 in which six bidders participated. The highest bid was of Rs. 2.5 crores coming by M/s. Balaji, but in view of the application filed by M/s. Cygnus, further sale process got stalled till the application of M/s. Cygnus was dismissed on 4-8-2005. 11. The endea....
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....lly increased the bidding amount to Rs. 7 crores by M/s. Balaji, which had already deposited the EMD and the said bid was consequently accepted. 14. Learned senior counsel for one of the appellant companies once again seek to take up the issue of demarcation and their inability to properly inspect the said factory premises as the area was not clean, completely ignoring the fact that the status report about the demarcation was on record. 15. We cannot lose sight of the fact that a period of almost nine years had elapsed from the date of winding up of the said Company till the bidding process and the assets could not indefinitely be kept in abeyance without them being sold. The bidding had taken place on 'as is where is basis' and the t....
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....n a recent judgment by learned Single Judge of this Court in the matter of : Saraf Paper Mills Ltd. (In Liquidation) v. Official Liquidator [2008] 155 DLT 517, the Company Court took note of the fact that where the process of issuance of sale proclamation, initiation of bid and making of bids by only handful of persons resulted in limited inter se bidding in Court, the same was vitiated by gross material irregularity if not fraud with inadequate price. 20. The aforesaid are well settled principles. The Company Judge is to make every endeavour to get the best price. No doubt, learned senior counsel for one of the appellant companies on instructions stated that the said appellant was willing and is still willing to pay now Rs. 8.5 crores f....