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2014 (12) TMI 1302 - GUJARAT HIGH COURTAuction - higher bid/offer made by the appellant herein of ₹ 148 Crores for the land/property of the Company in liquidation - Rule 9 of the Company (Court) Rules - interpretation of statute. Held that: - it emerges that the learned Company Court has specifically observed and held that while accepting the higher bid of the appellant of ₹ 148 Crores on the date of auction i.e. on 17.12.2013, the relevant factor such as potential development of the land which can be said to be a relevant factor while determining the market price was not considered by him. That the learned Company Court has also specifically observed that the highest price offered by the appellant of ₹ 148 Crores which came to be accepted vide order dated 17.12.2013 was an inadequate price. That the factum of change in the FSI was in offing and the aforesaid relevant factor of change in the FSI which would have a direct bearing on the potential development of the land was not considered by the Court which has resulted into irregularity and injury. While observing as stated herein above, the learned Company Court has taken everything upon itself and has accepted that the relevant factors like potential development of the land even as on 17.12.2013 were not considered by him which has resulted into accepting the inadequate price and irregularity and injury and therefore, this is a fit case to exercise the inherent powers conferred under Rule 9 of the Companies (Court) Rules. Therefore, as such the learned Company Court has tried to correct the error committed by it and has recalled its earlier order dated 17.12.2013 accepting the higher offer of the appellant of ₹ 148 Crores [market price of ₹ 148 Crores which is held to be grossly inadequate and substantially low] and has passed the order to reauction the land by fixing the upset price at ₹ 214 Crores. In the present case the learned Company Court has in exercise of inherent powers under Rule 9 accepting and/or taking upon itself that certain relevant factors like potential development and the change in the FSI which had a direct bearing on the determination of the market price was not considered by him on 17.12.2013 when the offer of the appellant of ₹ 148 Crores was considered. Under the circumstances, the aforesaid aspect is not required to be considered and/or gone into detail. Appeal dismissed - decided against appellant.
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