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Issues:
1. Undervaluation of bid offer and rejection request. 2. Acceptance of bid offer by official liquidator. 3. Applicant's challenge to the bid acceptance. 4. Lack of legal provision for recalling bid acceptance. 5. Concerns regarding fairness and natural justice in the application process. Undervaluation of bid offer and rejection request: The applicant filed an application under section 460(6) of the Companies Act, 1956, seeking rejection of a bid offer for the assets of a company in liquidation, alleging undervaluation. The applicant claimed that the bid offer was underestimated and submitted its own bid for a higher amount. The applicant argued that the public interest should prevail, and their offer should be accepted instead. Acceptance of bid offer by official liquidator: The official liquidator had invited tenders for the sale of the company's assets, with a reserve price set at rupees one crore twenty-five lakhs. The bid offer from Jyoti Steels and Traders was accepted and confirmed in favor of Delhi Minerals and Metals Pvt. Ltd. The secured creditors supported this bid acceptance, emphasizing the importance of finalizing the sale to avoid potential difficulties in finding another buyer. Applicant's challenge to the bid acceptance: The applicant contested the bid acceptance, claiming that the bid offer was undervalued and that their own offer of a higher amount should be considered in the interest of justice. However, the court noted that the applicant had not submitted an offer before the bid acceptance process was concluded, raising doubts about the sincerity of their intentions and suggesting a possible ulterior motive behind the late submission. Lack of legal provision for recalling bid acceptance: The court highlighted the absence of legal provisions allowing for the recall of bid acceptances once confirmed, especially in the absence of fraud or misconduct by the highest bidder. The court stressed the importance of upholding the integrity of the bidding process and the finality of bid acceptances to maintain public trust in the system. Concerns regarding fairness and natural justice in the application process: The court expressed concerns about the fairness of the applicant's challenge, noting the potential adverse impact on the highest bidder whose bid had already been accepted. The court emphasized the principles of natural justice and fair play, highlighting the necessity of involving all relevant parties, including the highest bidder, in such proceedings. The court dismissed the applicant's application but allowed for alternative legal avenues to be pursued, such as filing an appropriate application before the Division Bench or impleading the highest bidder in a fresh application.
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