9911796707
TMI Blog1959 (10) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... his application have been exhaustively and clearly set out in the report submitted by the official liquidator. The Taj Clay Works Ltd. has been directed to be compulsorily wound up by an order of this court dated July 18, 1958. This court made an order on the 10 July, 1959, permitting the official liquidator to sell the assets of the company by inviting offers from intending purchasers. The official liquidator duly advertised the sale in eight leading daily newspapers in English, Telugu and Urdu. The conditions of sale were approved by an order of this court (in Application No. 446 of 1959) dated the 7th August, 1959, in and by which the official liquidator was authorised to receive offers from intending purchasers up to 4 p.m. on the 30th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant reiterating the offer and expressing his preparedness to deposit any earnest money that the official liquidator might decide and to accept any terms that he might impose. It is submitted by Mr. Narasimha Aiyangar on behalf of the applicant that this court can accept any higher offer before the sale is actually confirmed and that his client's offer being the highest, it should be accepted. Now, it may be stated at the outset that the applicant wrote to the official liquidator on the 23rd March, 1959, in the following terms: "For all the above mentioned items, I offer Rs. 2,00,000 (two lakhs only), subject to title being clear and no legal impediments whatsoever and I shall be in no way liable to pay any Government and public ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f sale supplied to him by the official liquidator that he should make a deposit of 5% of the price offered within the time fixed. Admittedly, he made no deposit of this 5% as required. Furthermore, as is seen from his letter dated 3rd March, 1959, his earlier offer lapsed after 30 days and it was not renewed. Therefore, his statement that his "misapprehension" was responsible for his not making a fresh offer is a pure afterthought. Section 457 of the Companies Act (1 of 1956), corresponding to section 179 of the now repealed Companies Act, defines the powers of the liquidator, and they are in identical terms. Under section 457( i )( c ), the liquidator, in a winding up by the court, shall have power with the sanction of the court to sell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... properties of the company are sold by the official liquidator after his having obtained the sanction of the court and subject to the confirmation of the court, he should be free to dispose of the property provided he observes the conditions previously imposed by the court and the price is adequate. As observed by Stodart J., in Rowthmall Neopani v. Nagarmall Madan Gopal [1939] 9 Comp. Cas. 335 at 347 : " (otherwise) offers for the purchase of the property will be merely tentative. A prospective purchaser will not disclose to the liquidator the final figure to which he is prepared to go if his offer is liable to be outbid by someone else when the sale comes up before the court for approval." In the present case, the offer of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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