TaxTMI 
TaxTMI 
2010 (12) TMI 1061
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..... 2. Company Appeal No. 1 of 2008 has been filed by the "Pradeshiya Industrial Investment Corporation of U. P. Ltd." under section 483 of the Companies Act, 1956, against the order dated October 3, 2008, passed by the learned company judge of this High Court. Respondent No. 1 before this court is the official liquidator and respondent No. 2 M/s. Shubham Enterprises is the auction purchaser. 3. The brief facts of the case are that on a reference being made by M/s. Vishwa Ingot P. Ltd., under section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, the BIFR after making enquiries under section 16(1) of the Act recommended that the company, i.e., M/s. Vishwa Ingot P. Ltd., should be wound up. This court vide an order da....
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..... 2, however, moved an application before the learned single judge that the time given to him for depositing the remaining amount be extended. This was strongly objected by the secured creditors on the plea that during this period the price of the property has soared high and there are people who are ready and willing to offer a much higher price ranging up to Rs. 1,00,00,000 for the property and respondent No. 2 should not be given any time to deposit the remaining amount. The learned single judge, however, in order to meet the ends of justice and considering the fact that respondent No. 2 was the highest bidder extended time for the deposit of the remaining amount with a condition that he will have to pay interest of 24 per cent. simple i....
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....ipulated condition that the amount has to be given with an interest of 24 per cent. which we think is very reasonable and takes care of the secured creditor to a large extent inasmuch as the amount ultimately which the secured creditors would get including the interest would be very close to the one they expect to fetch from the prospective bidders, etc. 5. Rule 7 of the Companies (Court) Rules, 1959, reads as under : "7. Power of court to enlarge or abridge time.-The court may, in any case in which it shall deem fit, extend or abridge the time appointed by these rules or fixed by an order of the court for doing any act or taking any proceeding, upon such terms (if any) as the justice of the case may require and any such enlargement may b....