9911796707
TMI Blog2000 (9) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... ndicate that the reserve price, shall be the amount equal to the total decree including interest which has accrued upto 31-12-1999 in favour of the appellant-bank, and shall also has to pay the balance interest which accrues, till full payment is made. The publication shall also indicate that purchaser has also to pay the liabilities of other claimants in the proceeding for the liquidation of the company. - CIVIL APPEAL NOS. 5411-5413 OF 2000 - - - Dated:- 26-9-2000 - A.P. MISRA AND DORAISWAMI RAJV, JJ. Dr. A.M. Singhvi, Gobind Das Parag, P. Tripathi, Bijoy Kumar Jain, Ashok Jain, C. Mukund, Rakesh Jain, Deepak Jain, Subir Sinha, Kailash Galla, G.S. Chatterjee, Raja Chatterjee, Ms. Aruna Mukerjee, Sachin Das, Ms. Asha Barmolar, S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the aforesaid judgment-debtor-company went into liquidation under the order of the winding up dated 4-6-1990. 4. On 12-12-1997, the High Court appointed the Official Liquidator in the said execution case, to take possession of the assets of the company and directed it to take steps for the sale of the assets of this company. The relevant portion of this order is quoted hereunder : "The Official Liquidator is appointed receiver for the purpose of making an inventory of the assets of the company in liquidation and have the same valued by a qualified valuer for the purpose of sale of the said assets. The condition for such sale shall be settled by him subject to confirmation by this Court." 5. On 19-12-1997, this order was modifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrear dues of the workmen and if so the manner in which they proposed to pay off the said dues. It should be mentioned in the said notice that the sale shall be subject to confirmation by this Court." 6. Another order dated 10-7-1998 was passed by the High Court directing the Official Liquidator to sell all the assets of the company in liquidation as a going concern . 7. On these facts, the submission, on behalf of the appellant-bank, is that respondent No. 4 - Rishra Steels Ltd. the judgment-debtor was not functional even before the date of winding up, i.e., it is not a running concern since last more than ten years. The argument is, by order dated 19-12-1997, the Court directed for the sale of plant, machinery and movable which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total decree along with interest till 31-8-1999 recorded is Rs. 8,29,48,725.72p. It is true, the Court must find that method of sale of the assets or of the company, which brings maximum price to satisfy its creditors. This may, in a given case, include recovery through instalments out of the production of the company. This would depend on the potentiality, viability and health of a company. Sometimes when company is taken over under section 29 of the State Financial Corporations Act, 1951 corporation may run or get the factory run to recover the loan. In another set of cases, where company has become non-functional, sick due to its heavy debt, lack of production, mismanagement, etc., then possibility of its revival is examined through exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned counsel who appeared for the benefit of the employees that more than 100 employees were starving to death and in the later para stated that the Court was informed by the learned advocate appearing for the employees union that more than 100 employees have already died. Without there being any application on record and without there being proper verification of the facts from the concerned parties, it is not just and proper to make such observations. It is not impossible that because of the lapse of 17 years, out of 1200 workers who might have worked in the said factory 100 employees might have died a natural death. But in any circumstances it was unjustified to make a case over it and to accept oral submission and to dispose of the val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limit. 14. After considering submission of the learned counsel for the parties, we are granting this indulgence, by permitting the sale of the company as a going concern with certain conditions only. 15. The Official Liquidator for this purpose shall advertise the sale of the company in liquidation-judgment-debtor as a going concern as ordered by the High Court. Such publication shall indicate that the reserve price, shall be the amount equal to the total decree including interest which has accrued upto 31-12-1999 in favour of the appellant-bank, and shall also has to pay the balance interest which accrues, till full payment is made. The publication shall also indicate that purchaser has also to pay the liabilities of other clai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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