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Issues:
Compulsory winding up order, sale of mill premises, highest bid, recommendation by Official Liquidator, subsequent higher offer, confirmation of sale, court's discretion, inadequate purchase price, judicial exercise of discretion, subsequent higher bid impact on confirmation, reserve price suggestion. Analysis: The case involves an appeal from an order of the Chief Justice as Company Judge regarding the compulsory winding up of a company and the subsequent sale of its mill premises. Initially, the Official Liquidator recommended against confirming the sale to the highest bidder, the appellant, due to an inadequate offer of Rs. 1,10,000. Subsequently, another firm made a higher offer of Rs. 1,14,000. The Company Judge then directed the Official Liquidator to advertise the property again for higher offers. Despite not receiving the advertisement, the appellant was informed of the court date. However, in a letter, the appellant indicated reluctance to raise the offer. The Chief Justice, considering all circumstances, accepted the higher offer of Rs. 1,15,000 from another firm, leading to the appellant's appeal. The appellant argued that without a finding of inadequacy of his offer, the sale should have been confirmed to him. The court highlighted that the auction explicitly stated the sale was subject to court confirmation, indicating the appellant had no automatic right to acceptance. The court opined that the Chief Justice's decision to accept the higher offer was within his discretion, especially considering the Official Liquidator's opinion on the inadequacy of the initial bid. The court emphasized that the appellant had no legal right to insist on his offer being accepted, and the discretion exercised by the court was justified. The court also discussed the impact of subsequent higher bids on sale confirmations by Official Liquidators. It suggested that as long as the price is adequate and there is no fraud or irregularity, a higher bid should not automatically lead to refusal of confirmation. The court recommended setting a reserve price to provide clarity to potential buyers and ensure that a sale can be confirmed even if a subsequent higher offer is received. Ultimately, the court dismissed the appeal, emphasizing that the court's discretion was judiciously exercised in this case, and no costs were awarded.
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