TaxTMI 
TaxTMI 
2010 (4) TMI 611
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....d single judge in Company Application No. 1231 of 2004 in R. C. C. No. 20 of 2000, dated December 30, 2004, whereby at the instance of the company in liquidation viz., M/s. Circar Paper Mills Ltd., through its official liquidator the application purported to have been filed under section 457(1)(c) of the Companies Act, 1956, read with rules 9 and 11(b) of the Companies (Court) Rules, 1959, seeking for permission to sell the properties in question and for other consequential reliefs was ordered. 2. The brief facts, arising out of the present proceedings, are that in respect of the said company an order of winding up was passed on February 14, 2001, by the learned single judge in R. C. C. No. 20 of 2000. Thereafter, on an application filed....
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....and and the other extent of acre 40.65 is an assigned land. There appears that no objection is expressed in the initial stage for proceeding with the alienation, and therefore, the entire auction was proceeded with and ultimately the sale virtually came to a final conclusion. The learned single judge by taking into consideration all these and other facts and checkered events, including the objections raised by the appellants herein, rejected the same and allowed the application filed by the official liquidator confirming the highest bid in favour of respondent No. 5 for an amount of Rs. 780 lakhs and with further directions to complete the formalities. While, allowing the said application, the learned single judge has taken into account the....
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....the consent or acceptance for proceeding with the alienation. 6. The aforesaid submissions were sought to be repelled on behalf of the respondents pointing out the various checkered events, and especially, the total lull on the part of the appellants herein without any proper proceedings or objections at the appropriate time, and therefore, the entire claim of the appellants is stated to be totally unsustainable. 7. On these and consideration of other submissions made on behalf of both sides and on perusal of the material, the point which arise for consideration is: whether on the facts and circumstances the objection in regard to alienation' of the landed property which is sought to be sold on behalf of the appellants is sustainable ....
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....roperties and on July 29, 2004, sale ordered, this was followed by issuance of notice for the sale of property by the official liquidator by making up due publications of sale proclamation in the local newspapers in Eenadu Telugu daily newspaper on July 28, 2004 and Deccan Chronicle English newspaper on July 29, 2004. 10. At this juncture, the Mandal Revenue Officer appears to have initiated the proceedings purportedly under the provisions of the Andhra Pradesh Assigned Lands (Prohibition of Transfer) Act, 1977, on July 20, 2004, by issuing notice only to the company in liquidation, but no notice was given to the official liquidator. It is stated, since the company was being in liquidation the notice could not have been received by itsel....
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....ot make it legal where it is illegal. 11. For convenience sake, the relevant portion of the said Act is extracted below : "Section 4.-. . ." 12. The provisions of the Andhra Pradesh Assigned Lands (Prohibition of Transfer) Act, 1977, is a social welfare legislation and sufficiently well pro tected under the Constitution of India. Necessarily, it prevails over all other laws including the company law and therefore any act done in pursuance of the Companies Act, 1956, would not in any way hamper or discard the incidents, which follow in respect of any such lands which are assigned. The prohibition as contained therein as against alienation is complete and it has been now well established that any such act of alienation or meddling th....
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....g its claim on the land, which runs quite contrary to the letter of the law and the incidents following. We are conscious of the directions given by the learned single judge for deposit of Rs. 1,50,000 per acre with the State however that itself would not in any way take out from the purview of the legal bar as contemplated under the law. Neither such a course is permitted under any of the provisions of the Act, and in fact, it would only amount to adding premium to the illegal act which is prohibited under the law. Nothing can be compensated towards relinquishment of sovereign power. Therefore, the respondents including respondent No. 5 herein, the auction purchaser cannot take any advantage of such conditions made by the learned single ju....