2017 (7) TMI 180 - SC - Companies Law

Auction of properties of Saharas - permitting the sale of Grosvenor House Hotel - Held that - In the interlocutory application relates to grant of permission for sale of Grosvenor House Hotel, i.e. by transfer of shares of the company to the buyer i.e. GH Equity U.K. Limited. Mr. Arvind P. Datar, learned senior counsel appearing for the S.E.B.I. has no objection if such permission is granted. The permission is, accordingly, granted. Permit Saharas to sale their lands at the price less than 90% of circle rate - Held that - Direction for auction of the property confimed. Therefore, no further order need be passed on the said prayer. Accept the properties of Saharas as a security for the balance principal amount instead of cash deposit - Held that - We are not inclined to pass any order thereon and, accordingly, they are rejected at this stage. As we had directed the Official Liquidator of the High Court of Bombay to proceed with the drafting of terms and conditions of sale notice for the Amby Valley property. Mr. Vinod Sharma, Official Liquidator submits that the terms and conditions have been scrutinized by Justice B.N. Agarwal, formerly a Judge of this Court, who has been nominated to supervise the refund process. A copy of the terms and conditions be handed over to the learned counsel for the contemnor. The original terms and conditions of the sale notice which have been filed in the Court be taken on record.Let the matter be listed at 3.30 p.m. on 5th July, 2017.

Summary

Issues: Application for directions seeking extension for compliance, permission for sale of properties, security for balance amount, and vacation of previous order.

In this judgment, an application was filed seeking directions, including an extension for compliance with an undertaking, permission for the sale of properties, and security for the balance amount. The contemnor had previously deposited a substantial sum in the SEBI Sahara Refund Account but still had a balance to pay. The court considered the request to sell a property below the circle rate and decided that it should be auctioned instead. The court extended the time for compliance by ten working days and directed the contemnor to deposit the remaining amount by a specified date. Permission was granted for the sale of Grosvenor House Hotel by transferring shares to the buyer. The court rejected the requests for alternative security and vacation of a previous order. Additionally, the Official Liquidator was directed to draft terms and conditions for the sale notice of another property, which would be considered at the next hearing. The matter was scheduled for further proceedings, with a warning of custody if the balance amount was not paid by the given date.