9911796707
TMI Blog1969 (10) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... commissioners for the purpose of selling the immovable and movable properties and actionable claims of the aforesaid company in accordance with the terms and conditions mentioned in the order. Accordingly, a sale proclamation was drawn and issued on 1st August, 1964, by respondents Nos. 2 to 4 inviting offers for the purchase of the movable and immovable properties and actionable claims of the company as a single unit. According to the terms and conditions of sale the commissioners were not bound to accept the highest offer and were at liberty to reject any offer without assigning any reason. Immediately after the offer was accepted by the commissioners the offerer had to deposit 15 per cent. of the offer amount as initial deposit and the balance of the amount together with the amount required for non-judicial stamp paper within 15 days from the date of acceptance. Acceptance of the offer by the commissioners was subject to the condition of confirmation by the High Court and the offerer was entitled to take delivery of possession of the properties only after such confirmation. It was made abundantly clear in clause 16 that in all matters relating to the sale of the properties the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a demand draft for a sum of Rs. 1,00,015. The learned judge decided that the property did not fetch its proper price and there was possibility of higher bids. Instead of directing a fresh auction or calling for fresh offers the learned judge thought it proper to arrange an open bid in the court itself on that very day, as between the appellant and Gopaldas Darak. Before starting the bid the learned judge gave time to the appellant to think over and say whether it was willing to accept the course decided upon and to participate in the auction bids. The appellant consented and volunteered to take part in the bid and became the highest bidder at Rs. 8,82,009. The learned judge accepted the said bid as final bid and concluded the sale in favour of the appellant directing it to pay the balance of the money together with the amount required for non-judicial stamp on or before 31st January, 1965, making it clear that in case of default the deposit already made would be forfeited. The appellant paid the balance of the amount on 30th January, 1965. On the same day one Padam Chand Agarwal made an application (Company Application No, 44 of 1965) offering Rs. 10,00,000. He complained that publ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court. All sales shall be made by public auction or by inviting sealed tenders or in such manner as the judge may direct." The principles which should govern confirmation of sales are well-established. Where the acceptance of the offer by the commissioner is subject to confirmation of the court the offerer does not by mere acceptance get any vested right in the property so that he may demand automatic confirmation of his offer. The condition of confirmation by the court operates as a safeguard against the property being sold at an inadequate price whether or not it is a consequence of any irregularity or fraud in the conduct of the sale. In every case it is the duty of the court to satisfy itself that having regard to the market value of the property the price offered is reasonable. Unless the court is satisfied about the adequacy of the price the act of confirmation of the sale would not be a proper exercise of judicial discretion. In Gordhan Das Chuni Lal v. T. Sriman Kanthimathinatha pillai AIR 1921 Mad. 286 it was observed that where the property is authorised to be sold by private contract or otherwise it is the duty of the court to satisfy itself that the price fixed is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment, dated 29th August, 1963, in which the value of the property was shown as Rs. 13,40,000. Besides, on that very day, one Gopaldas Darak had come before the court with a higher offer showing his bona fides and earnestness by depositing more than one lakh of rupees. He came with the complaint that there was not sufficient publicity as to attract people from the north and that as soon as he came to know he gave his offer. In these circumstances, the learned single judge was right in expressing his reluctance to confirm the offer of Navalkha & Sons. He therefore decided to have an open bid as between the appellant and Darak in the court itself on that very day. The complaint of Padam Chand Agarwal is that the second step taken by the single judge of holding an auction without giving wide publicity was not justified in law. Rule 273 of the Companies (Court) Rules provides that all sales shall be made, by public auction or by inviting sealed tenders or in such manner as the judge may direct. It appears that on 17th April, 1964, at the instance of the official liquidator and at the instance of a contributory, the court had approved of the terms and conditions of sale which provided fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
