2016 (6) TMI 537 - HC - Indian Laws

Official Liquidator proceedings for sale of the remaining assets of the Company in liquidation - Held that - The verification report in respect of claim raised by GIDC is taken on record. As far as prayers prayed for in para 17 (b), (c) and (d) are concerned, the Official Liquidator is permitted to initiate the proceedings of sale of immovable properties of the company situated at GIDC, Panoli and the upset price and Earnest Money as well as the schedule is fixed As far as prayer 17(e) is concerned, the OL is directed to file a fresh report stating further details and the balance amount in the account of the company under liquidation.

Summary

Issues:
1. Official Liquidator's prayer for various reliefs including sale of assets and payment of dues.
2. Directions sought by Official Liquidator for sale of assets and related procedures.
3. Verification of claims by GIDC and fixing upset price for sale of immovable properties.

The judgment involves a Company Petition where the Official Liquidator sought several reliefs, including recording the claim verification report, selling remaining assets, fixing upset price, and paying advertising agency bills. The Official Liquidator requested permission to proceed with the sale of the company's assets, emphasizing the need for appropriate upset price and earnest money. The respondent, representing GIDC, asked for directions regarding the dues certified by the Chartered Accountant. The history of the case revealed attempts at asset disposal in previous years, leading to the current valuation report and sale proceedings.

The Court reviewed the case history, noting the winding up of the company and subsequent appointment of a Provisional Liquidator. Various attempts to dispose of assets were made in previous years, culminating in fresh valuations and sale proceedings directed by the Court. The recent report detailed the receipt of multiple offers for the purchase of movable items, leading to the confirmation of the sale to the highest bidder. The Court addressed the refund of Earnest Money Deposit (EMD) and rejected requests to return Demand Drafts to prevent non-genuine bidders from staking claims.

In response to the Official Liquidator's prayers, the Court accepted the verification report of GIDC's claim and permitted the initiation of sale proceedings for the immovable properties. The upset price, earnest money deposit, and sale schedule were fixed for the mentioned property. Additionally, the Court directed the Official Liquidator to provide further details and the remaining balance in the company's liquidation account. The judgment disposed of the report based on the stated terms and directions, outlining a timeline for advertisement, inspection, tender forms, and opening of offers before the High Court.

In conclusion, the judgment addressed the Official Liquidator's requests for sale of assets and payment of dues, provided directions for sale proceedings, and verified GIDC's claims while fixing the upset price for immovable properties. The Court's decision encompassed detailed procedures for asset sale, including timelines for advertisement, inspection, tender forms, and offer opening. Additionally, the judgment instructed the Official Liquidator to submit a fresh report with further details and account balance information.