9911796707
TMI Blog1999 (2) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... calling for tenders. vide the order dated October 9, 1998, the highest offer to Rs. 65 lakhs in favour of M/s. Enrich Engineering Works Ltd. was accepted, who were directed to deposit the entire amount of sale consideration in four monthly instalments. The official liquidator has reported vide his report No. 19 of 1999, that the full sale consideration has been deposited in four instalments, the last of which fell due on February 9, 1999. Consequently, the official liquidator has prayed that the sale be confirmed. I have heard Shri G.D. Srivatsava, learned senior counsel in support of his application (A-59) filed on behalf of the company (in liq.), Shri Vikram Nath, learned counsel appearing for the IFC and two others in support of his application (A-63) and the official liquidator. I have also heard Shri R. P. Agrawal, learned counsel who had put in appearance on behalf of the highest bidder M/s. Enrich Engineering. The main submission of Shri Srivastava is to the effect that the valuation of the assets of the company (in liq.) had not been properly done and it should be revalued by a technical expert so that the proper valuation of the price of the said assets could be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel appearing for the party which has given the highest offer has submitted that the sale of the assets was duly advertised in as many as four newspapers and also in the Auction Journal and had been given wide publicity. The concerned party had given the highest offer and there is no reason why the same should be rejected. It has been submitted that the sale should not be set aside merely on general and vague allegations specially when no higher offer has been given. A valuable right has accrued in favour of the concerned party and the sale should be confirmed as the entire amount of sale consideration has been deposited within the time granted by this court. I have perused the averments made in the affidavits and have carefully considered the respective submissions made by learned counsel for the parties and the official liquidator. As already noticed above, the company (in liq.) was ordered to be wound up on December 16, 1993 and the official liquidator was appointed the liquidator. However the official liquidator could not take possession as- firstly, an application was filed for recalling the said order and, thereafter various dilatory tactics were adopted. It is oh re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt despite specific orders passed by the court directing them to make payment. It has also been pointed out by the official liquidator that even for the last 5 years, the statement of affairs has not been filed by the ex-management of the respondent-company. While considering the objections raised on behalf of the ex-management and the financial corporations, these factors could not be lost sight of. So far as the submission made by Shri Srivastava that according to the balance-sheet of the company for the year 1992, the assets of the company ran into several crores is concerned, the same may not be very relevant in view of the fact that the report of the official liquidator that the major and valuable parts of the machinery had been removed prior to handing over possession in the year 1995. Consequently, the machines have lost their value and were merely scrap. It is for that reason the valuation given in the balance-sheet of the year 1992-93 will not be a correct reflection of the market value of the machines now existing. It is for that reason that despite wide publicity and the sale notice being advertised thrice, genuine buyers were not attracted. So far as the submission t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst the interest of the secured creditors. So far as this submission is concerned, the order dated May 24,1996, was passed by this court on the application filed by the financial corporations for appointing a receiver over the said property. While rejecting the said application, this court had merely observed that the assets could be disposed of jointly by the applicants as well as the official liquidator and the advertisement could also be published jointly. However, there were no specific orders in respect thereof. Subsequently, after hearing learned counsel for the parties including Shri O.P. Mishra, who appeared for the corporation, this court had vide its order dated December 18, 1997, directed the official liquidator to advertise the sale and call for tenders. This order had become final as the applicants did not contest the said order or made any prayer for the joint sale of the assets. The official liquidator has submitted that the applicants were informed about the dates and they had full knowledge of the date when the tenders were opened and on earlier occasions they were represented. However, merely because on the last date when the tenders were opened neither repre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of a higher price in the future may strain the credibility of the court sale itself and may yield diminishing returns as was proved in this very case." In para. 9 of the same decision, it has been further observed as follows (page 1335) : "But it is not as if the court should go on adjourning the sale till a good price is got, it being a notorious fact that court sales and market prices are distant neighbours. Otherwise, decree holders can never get the property of the debtor sold. Nor is it right to judge the unfairness of the price by hindsight wisdom. May be, subsequent events, not within the ken of the executing court when holding the sale, may prove that had the sale been adjourned a better price could have been had. What is expected of the judge is not to be a prophet but a pragmatist and merely to make a realistic appraisal of the factors, and, if satisfied that, in the given circumstances, the bid is acceptable, conclude the sale. The court may consider the fair value of the property, the general economic trends, the large sum required to be produced by the bidder, the formation of a syndicate, the futility of postponements and the possibility of litigation, and s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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