2015 (4) TMI 1298 - HC - Companies Law

Sale of property - what is essentially urged is the property to be sold to the applicant on applicants ready and willing to purchase the same at the price mentioned thereunder - HELD THAT - The grounds for such a prayer are that despite repeated attempts, the property is not being sold and even the value of the property offered which is commensurate with the existing Jantri rate, Court be appropriate for granting relief prayed in this application. This Court is of the considered view that the order of such nature would ordinarily be not rejected straightway, as there cannot be any objection to treat such offer to be an offer, which would give fair and appropriate valuation for seeking further valuation and setting up appropriate upset price based whereupon the bids can be invited from the open market and in such an eventuality, it is always open for the applicant to put forward its offer. Therefore, at this stage, while rejecting this application, Court is inclined to issue following direction to the official liquidator. Application disposed off.

Summary

Issues:
1. Application for sale of land by the applicant with specific prayers.
2. Consideration of the grounds for the sale application.
3. Submission regarding the rehabilitation scheme and the applicant's future participation.
4. Court's view on the application and issuance of directions to the official liquidator.
5. Disposal of the application.

Analysis:
The judgment pertains to an application made by the applicant for the sale of a specific piece of land, with detailed prayers outlined. The applicant sought acceptance of their offer to purchase the land and requested the court to direct the official liquidator to expedite the sale procedure. The grounds for the application included the property not being sold despite efforts and offering a price in line with the existing Jantri rate. The court considered the request and noted that such offers should not be outright rejected, as they provide a basis for fair valuation and setting an appropriate upset price for inviting bids from the market.

Furthermore, the court acknowledged that the rehabilitation scheme was under consideration in another matter and suggested that the applicant could participate when the property is put up for sale. Consequently, the court decided not to entertain the application at that stage but issued directions to the official liquidator. The official liquidator was instructed to assess the situation, provide a progress report, and consider the price offered if the property is to be sold in the future. The court clarified that the decision to not entertain the application should not be interpreted as a rejection based on merits, and the applicant was not hindered by any other obstacles.

In conclusion, the court disposed of the application, emphasizing that the direction issued to the official liquidator was aimed at ensuring a fair and transparent process if the property is to be sold in the future. The judgment highlighted the importance of considering offers for valuation purposes and setting appropriate prices for inviting bids, while also addressing the applicant's potential participation in the sale process at a later stage.