2018 (8) TMI 1913 - HC - Indian Laws

Auction - sale to highest bidder - Permission to carry out the formalities for disposal of the immovable properties of the Company in liquidation - HELD THAT - Considering the highest offer from M/s. Recycling Solutions Pvt. Ltd. Panoli, through Mr.Viral K. Shah, learned advocate, which is proper and adequate, the same deserves to be accepted as sale consideration of immovable property being property of Lot No.I i.e. Leasehold land admeasuring about 25,912 sq.mtrs., being Plot No.208/2, G.I.D.C, Panoli, Ankleshwar , originally belonging to the Company (in liquidation) and the same be sold in favour of M/s. Recycling Solutions Pvt. Ltd., Panoli, as per the conditions mentioned in the advertisement - M/s. Recycling Solutions Pvt. Ltd. Panoli, being the highest bidder, shall deposit remaining amount of ₹ 7,88,00,000/- (Sale consideration of ₹ 8.37 Crores - ₹ 49,00,000/- received as EMD) within the time prescribed as per the terms and conditions. Thus, the sale is confirmed by accepting the bid of M/s. Recycling Solutions Pvt. Ltd., Panoli, being the highest bidder. On receipt of total sale consideration from M/s. Recycling Solutions Pvt. Ltd., Panoli, the Official Liquidator shall give physical and actual possession of the immovable properties of the Company (in liquidation) i.e. Leasehold land admeasuring about 25,912 sq.mtrs., being Plot No.208/2, G.I.D.C, Panoli, Ankleshwar to it and thereafter shall undertake the exercise of executing a sale deed in favour of M/s. Recycling Solutions Pvt. Ltd., Panoli.

Summary

Issues:
- Disposal of immovable properties of a company in liquidation
- Auction process and highest bid determination
- Confirmation of sale and possession of the property

Disposal of Immovable Properties:
The High Court permitted the Official Liquidator to carry out formalities for the disposal of immovable properties of the company in liquidation. The fair market value of the land, building, plant, and machinery was determined by the Sale Committee and fixed accordingly. An advertisement for the sale of the properties was published in newspapers as per the court's order, ensuring extensive publicity throughout the State of Gujarat.

Auction Process and Highest Bid Determination:
After receiving bids from various bidders, including a late bid submission in open court, a total of 15 rounds of auction were conducted. The bid from Recycling Solutions Pvt. Ltd. at ?8.37 Crores emerged as the highest after the completion of the auction rounds. The Official Liquidator and the legal counsel confirmed the adequacy and propriety of the highest bid, leading to the acceptance of the bid for the immovable property listed as Lot No. I.

Confirmation of Sale and Possession:
Following the acceptance of the highest bid, Recycling Solutions Pvt. Ltd. was directed to deposit the remaining amount within the specified time frame. Once the total sale consideration is received, the Official Liquidator will provide physical possession of the property and execute a sale deed in favor of the successful bidder. The EMD amounts of other bidders will be returned, and late fees charges were imposed on a late bidder for bid submission.

The report was disposed of with the mentioned directions, and a separate report was required for a specific prayer.