2009 (3) TMI 577

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....o file a reply and subsequently the petition for winding up was admitted and an official liquidator was appointed as the provisional liquidator. 2. The learned Company Judge in terms of the Order dated 25-1-2007 directed valuation of the properties of the appellant. 3. It is the grievance of the appellant that the valuer appointed to carry out the task undervalued the properties. The appellant filed an application CA 666/2007 before the learned Company Judge inter alia challenging the valuation report and seeking to keep in abeyance the auction of the assets of the company. However, learned Company Judge acted in pursuance to the report of the valuer and directed auction of the property in open court on 12-7-2007 and finalized the auc....

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....sion. It was taken note of that in such auctions, the value achieved is normally less than the true market value. The payment to be realized by auction is utilized to settle the claims of the creditors and the appellant-company could not in this manner indefinitely postpone its obligations while giving no alternative solution. Thus, there is no infirmity in the impugned order in this behalf. 8. The second submission is predicated on the plea of absence of authority in the provisional liquidator to sell the property. Learned counsel for the appellant submits that the powers of the official liquidator acting as a provisional liquidator are not the same as the powers to be exercised by the official liquidator and this is apparent from the d....

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.... was directed by the Company Court and in fact the auction was finalized before the Court. Thus, the sale has taken place in pursuance to the specific authority and sanction of the Court and it certainly is not the plea that the Company Court cannot authorize the provisional liquidator to do the needful. This aspect has been considered in para 8 of the impugned order and we find no reason to differ from the same. 10. The last aspect urged is that there is an interim stay granted by the Allahabad High Court against the disposal of assets of the appellant-company. In this behalf, the learned Company Judge has taken note of the fact that this order was never brought to the notice of the official liquidator or to the Court. The order is stat....