2019 (9) TMI 1323 - HC - Companies Law

Direction to hand over the possession of the property within a reasonable period - sale of the assets of the respondent company - HELD THAT - In view of the total sale consideration having been paid by the applicant, the sale is confirmed in the favour of the applicant, M/s. Fashion Accessories. The Official Liquidator is directed to hand over physical possession of the property to the applicant within a period of three weeks from today and also execute the necessary sale deed in respect of the said property. Application disposed off.

Summary

Issues Involved:
1. Confirmation of sale of property and possession handover.
2. Payment of balance amount and possession of another property.

Analysis:

Issue 1: Confirmation of sale of property and possession handover
The High Court had initially accepted the bid of M/s. Fashion Accessories for a property in Gurgaon, Haryana. The successful bidder had paid an earnest deposit and was required to pay the balance bid amount within 60 days. The petitioner, through their counsel, informed the Court that they had deposited the balance amount within the stipulated time. Consequently, the Court confirmed the sale in favor of M/s. Fashion Accessories. The Official Liquidator was directed to hand over physical possession of the property within three weeks and execute the necessary sale deed. This part of the application was disposed of by the Court.

Issue 2: Payment of balance amount and possession of another property
In a separate application, the petitioner sought possession of another property along with the factory building. The petitioner expressed readiness to pay security charges and requested the Official Liquidator to deseal the industrial premises and hand over vacant possession. The Court directed the Official Liquidator to file a reply within 10 days and listed the matter for further hearing in October 2019. The petitioner's ownership documents had been verified, and they were willing to pay the outstanding security charges.

The judgments delivered by Ms. Jyoti Singh, J., focused on confirming the sale of the property, directing possession handover, and addressing the payment and possession issues related to another property. The Court ensured compliance with the terms of the auction and the petitioner's obligations while safeguarding the rights of all parties involved in the liquidation process.