9911796707
TMI Blog2004 (2) TMI 371X X X X Extracts X X X X X X X X Extracts X X X X ..... under liquidation through a public auction sale. 2. The Applicant Corporation is also a secured creditor of the companies under liquidation and they were permitted to stand outside the winding up proceedings and to effect the sale of the assets over which they had a charge and that is how they have conducted the sale of the landed property and building of the companies under liquidation. 3. The applicant Corporation got published the auction sale to be held on 19th December, 2003 as per paper publication issued on 1st December, 2003 in the news daily published at Bangalore. 4. The reserve price of the properties was fixed at Rs. 7 crores. At the public auction held on 19th December, 2003 amongst various bidders the highest bid p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s at the price of Rs. 23.20 crores. 7. I have heard Sri Deepak, learned counsel appearing for the Official Liquidator and it is submitted that though there were attempts to effect the sale of the properties of the companies under liquidation since in the year 1994, such efforts were not fruitful, that the price offered by bidders was not even touching the reserve price of Rs. 7 crores and as such the earlier attempts had become futile. Learned counsel for the Official Liquidator submits that it is only this time it has fetched a better price and it will be in the interest of all concerned connected with the companies under liquidation to accept this bid and confirm the sale, so that the amount of Rs. 23.20 crores which is realised is av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant had neither deposited Rs. 7 crores as offered in the application nor had this Court stayed the conduct of the auction sale. The application thus had become infructuous but had not been disposed of and had been tagged on without applications and has come up for orders along with these two applications referred to above. 10. These applications had come up for orders before the Court as on 12th February, 2004 and after hearing counsel for the parties in all these applications I had passed the following order : "Sri. Gopal Hegde, learned counsel appearing for the respondent - Karnataka State Financial Corporation (KSFC) files his client s objections in company application No. 1961/03. 2. Sri. Gopal Hegde, learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicant and the present highest bidder viz. , M/s. ISKON Charities who is able to pay a better price for the property and in the event in such a process the property can be bought by the applicant, the applicant has to compensate M/s. ISKON Charities the expenses, losses or damages that they claim in connection with the transaction. Sri. Chalapathy to indicate this amount to the Court, as well as to the applicant by or before Thursday the 19th February 2004. 7. Applicant also to deposit a sum of Rs. 35 lakhs before this Court by or before Tuesday the 17th February 2004, the amount which had been deposited by all other bidders in the auction sale and insofar as this amount is concerned the conditions as had been published and notified ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re not keen on depositing any amount nor participating in such subsequent proceedings. 14. The sale of the properties of the companies under liquidation was done after giving sufficient publicity and after publishing the sale in the local newspapers such as Economic Times, Hindu and Vijaya Karnataka published at Bangalore. The properties in question are located at Bangalore. As many as 11 bidders participated and offered their bids. These are all matters which cannot be said not within the knowledge of applicant in company application No. 1961/03. In fact this applicant had come before the Court even before such developments and therefore the entire proceedings were within the knowledge of this applicant who is an applicant who has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particularly as the Corporation will be losing interest for the period in between and submits in the circumstances it is just and necessary that the cost should be awarded in favour of the Corporation. 17. The cost of Rs. 20,000 levied in this proceeding is payable to the Karnataka State Finance Corporation in whose favour a certificate shall be issued by the Registry, on non payment of the amount by the applicant to the Corporation within 4 weeks from today and the same to be in the form of a decree passed by this Court. 18. In the circumstances indicated above I am satisfied that the sale proceeds of Rs. 23.20 crores represents a fair price for the properties sold in favour of the highest bidder, that the transaction of sale is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
