9911796707
TMI Blog1999 (4) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... nd costs. 2. Pursuant to the advertisement issued by the Official Liquidator on 21-9-1996, for sale of assets of the company in liquidation, including leasehold land measuring 25222 sq. yds. approximately and freehold land measuring 15000 sq. yds. approximately, on as is where is basis , three parties, including the applicant, gave their bids but subsequently, vide order dated 13-12-1996, another party, namely, S. Bhupinder Singh was also permitted to participate in the bidding. Keeping in view the area of the property, the Court considered it appropriate to go in for open bidding, in which only the said S. Bhupinder Singh and the applicant-company participated. The bid of S. Bhupinder Singh was for Rs. 6.05 crores and that of the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant there was complete mis-understanding on the part of the Official Liquidator in respect of the nature of the assets owned by the company in liquidation and the information furnished in the advertisement was incorrect inasmuch as; ( i ) out of total 15000 sq. yds, stated to be freehold land, only 2400 sq. yds. is actually freehold; ( ii ) out of the balance 12600 sq. yds. of the so represented freehold land, 12229 sq. yds. is of leasehold nature and in respect of balance of approx. 371 sq. yrds. there are no records; ( iii ) though there are two power of attorneys in respect of 12229 sq. yds. freehold land in favour of Mr. R.N.G. the ex-Managing Director of the company in liquidation, authorising him to execute the sale deed, nei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled only with a view to wriggle out of the order passed on 17-12-1996 as the applicant is not in a position to pay the balance amount in terms thereof. In the reply-affidavits, filed in opposition, it is stated that : ( i ) in the latest jamabandi for the year 1990-91, Bharat Carpets (P.) Ltd., the company in liquidation, is recorded as the lessee for 99 years commencing from 24-7-1975 onwards and the executants of the general power of attorneys in favour of Mr. R.N.G. are recorded as the owners of their respective shares; ( ii ) Mr. R.N.G. is holding general power of attorneys on behalf of the said owners of land and sale considerations have also been paid to them; ( iii ) the UCO Bank has already applied to this Court for issue of dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ranty in respect thereof. This is because he must proceed on the basis of what the records of the company in liquidation show. It is for the intending purchaser to satisfy himself in all respects as to the title, encumbrances and so forth of the immovable property that be proposed to purchase. Having purchased the property on such terms, he cannot prefer any claim or raise objection on the ground of defect in title or description of the property [ See : United Bank of India v. Official Liquidator 1993(4) Scale 19]. 7. In the instant case, as noticed above, in the advertisement for sale of assets of the company in liquidation it was made clear that the sale would be on "as is where is basis" and before making the bid the applicant-auc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 263 of 1997) was filed by the applicant, seeking a direction to the Official Liquidator to transfer the marketable title of the lands admeasuring 6875 sq. yds. and 5354 sq. yds. to the applicant and along with the application a draft sale deed, which the applicant wanted the Official Liquidator to execute in their favour, was annexed. I feel that in the event of execution of sale deed in the format furnished by the applicant, the applicant-company will acquire a clear title in the lands in question and no cause for applicant s grievance in this behalf will survive. 9. Relying on section 20 of the Indian Contract Act, 1872, it was submitted by the learned counsel, for the applicant that since the applicant had submitted their bid un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licant within thirty days of receipt of intimation from the Official Liquidator about the date and time for execution of sale deed in their favour after the same has been registered in favour of the Official Liquidator. The Official Liquidator shall take appropriate steps for getting the matter, stated to be pending before the Registrar, expedited and submit a monthly progress report in this behalf on the administrative side. If the applicant fails to make payment in terms of this order, the entire amount deposited by them with the Official Liquidator shall stand forfeited. It is also directed that in the sale deed to be executed in favour of the applicant, a clause, stating that the applicant-company shall be indemnified by UCO Bank as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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