2016 (9) TMI 1049

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....9 ("Rules,1959") seeking extension of time to deposit the balance 75 % of the bid amount to the tune of Rs. 53,62,500/- within 60 days from the date of acceptance of the bid (i.e. 13-3-2016). As it reveals from the record that the winding up order was passed by the Company Court dt.12-5-2006 of the company in liquidation namely M/s. Shri Sidh Plantation & Farm Ltd and the Official Liquidator attached to the Rajasthan High Court Jaipur after seeking prior permission & approval of the Company Judge on the administrative side of the draft tender notice with terms & conditions of the auction sale, vide order dt.5-2-2016, issued auction notice dt.13-2- 2016 and the auction bid was held of two lots I & II and the appellant submitted its bid wh....

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.... and thus in comparison to the present appellant the second highest bidder for Lot no.1 recorded their presence has not exceeded Rs. 36,80,000/-. The Company Court vide its order dt.15-3-2016 accepted the highest bid of the present appellant for Lot no.1 for a sum of Rs. 71,50,000/- obviously as per the terms & conditions indicated in the tender notice and in furtherance thereto the official liquidator issued acceptance letter dt.15-3- 2016 to the concerned bidder as per the terms & conditions of the sale approved by the Company Court & in compliance thereof the appellant deposited 25% within a period of thirty days and the remainder of 75% he was supposed to deposit as per the terms and conditions of the tender within sixty days of the acc....

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.... the terms & conditions of the tender notice. In the present appeal, when the facts were brought to our notice that despite wide circulation of the tender notice in the month of February,2016 & against the reserved price of Rs. 31,06,480/- for Lot no.1, the present appellant was the highest bidder who offered double the reserve price of Rs. 71,50,000/- which was accepted by the Company Court vide its order dt.15-3- 2016 and 25% of the bid as per the terms & conditions of the bid was deposited by the appellant within time and as regards the remainder of 75% the appellant because of short comings in the collection of fund requested to grant reasonable time considered appropriate and is ready to deposit the remainder amount along with inter....

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....el for the respondent on instructions from Official Liquidator present in Court informed that they are not agreeable in granting indulgence to the appellant as prayed for & they would like to contest the matter on merits & 25% of bid amount has been forfeited and the Official Liquidator proposes to re-auction the subject property, it may fetch the better price & further submits that it will give fair opportunity to the appellant as well to participate in the re-auction process obviously without any lien on the amount already forfeited by the respondent. We have heard counsel for the parties and also taken note of objections raised by the respondents. Counsel for respondent has tried to persuade this Court that after the terms & condit....

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.... whatever amount the subject land may fetch the sale proceeds received on auction will certainly be used/utilized for disbursing to its secured/unsecured creditors on pro rata basis and technically what is being pleaded by the respondent's counsel might have some substance but in the present scenario this Court can take stock of the situation that the winding up of the company took place way back on 12-5-2006 & the subject property when put to auction with the reserved price of Rs. 31,06,480/-, 15 tenders were received & opened on 10-3-2016 & the bid sheet is self explanatory that amongst those who participated and recorded their presence no one offered the bid above Rs. 35 Lakhs and as regards the present appellant is concerned his bid....

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....f the valuation report and the publication of the auction notice of the subject property in question including other ancillary charges is approx. Rs. 12 Lakhs and taking the matter in totality & the fact in particular that the appellant is ready & willing to deposit the remainder of 75% along with interest @ 24% within the time which this Court may consider appropriate, in our considered view the appellant deserves indulgence to deposit the remainder of 75% of the auction sale with interest @ 24% within a period of seven days invoking clause 12(iii) of the terms and conditions of the auction notice. Accordingly, in the light of what has been observed by us (supra), while setting aside the order of the Ld. Company Judge impugned dt.13-5-2....