9911796707
TMI Blog2004 (8) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. 2. The case, in brief, is that M/s. S.N. Corporation Limited being opposite party No. 2 was established in the year 1982 in joint sector in association with Industrial Promotion and Investment Corporation (for short, IPICOL ) and its commercial production was started in or about 1985. But, due to mismanagement by the private entrepreneur and for other reasons the said company being opposite party No. 2 started incurring loss since the beginning. The management of the said company was transferred to Industrial Development Corporation of Orissa Limited (for short, IDCOL ) being opposite party No. 1 herein. In 1990 the said company became sick and remained in BIFR for about 13 years till 5-5-2003 and on that date finding no other alte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed any proposal for revival of the company to the BIFR. They waited till the order of winding up was passed by the BIFR and it referred the matter to this Court. The learned Company Judge of this Court issued public notice inviting objections against the proposed winding up of the company by his order dated 4-9-2003. At that time the appellant-company offered a price of Rs. 2.10 crores for purchasing the assets of the company. Another party also made an offer of Rs. 2.24 crores to purchase the same. Opposite Party No. 4 being SCAW Industries Pvt. Ltd., (for short, SIPL ) which was due to set up a steel plant in or about the same area offered only Rs. 1 crore for the surplus land of 40 acres along with Guest House- cum -Administrative Build ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g standing thereon in abeyance and further directed that fresh advertisement may be issued inviting offers from interested parties for sale of the entire assets of the company including land, building, plant and machinery along with surplus assets of 39.98 acres of land with Guest House- cum -Administrative Building standing thereon as Package-I and for plant and machinery and the remaining land excluding the said 39.98 acres of land whereon the Guest House- cum -Administrative Building stands as Package-II. However, the earlier offer of SIPL of Rs. 1.25 crores for the said plot of land measuring about 39.98 acres with Guest House- cum -Administrative Building standing thereon was kept under consideration of the learned Company Judge. In ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Package-II was fixed at Rs. 5.99 acres. When the bids were opened in presence of all the bidders, it was known to everybody that SFL offered Rs. 5.20 crores for the plant and machinery and movable assets of the company under Package-II with the condition that it would take away the said movable assets of the factory to their factory at Chennai. However, SFL suo motu increased their offer by a further amount of Rs. 1.05 crores to compensate their inability to run the plant in Orissa where the factory was situated by their letter dated 30-4-2004. Therefore, the offer made by SFL amounted to Rs. 6.25 crores, i.e., (Rs. 5.20 crores + Rs. 1.05 crores) for the plant and machinery and the movable assets only. They did not propose in their bi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 004 in Misc. Case No. 19 of 2004. The learned Company Judge by his order dated 9-7-2004 found that the recommendations of the Asset Disposal Committee to sell the plant, machineries, equipments, raw materials, tools, work in progress etc. to M/s. Sundaram Fastners Limited (for short, SFL ) to be shifted outside the State and to sell the plot of land measuring about 39.98 acres with Guest House- cum -Administrative Building to opposite party No. 4 at a total price of Rs. 7.50 crores was in the interest of the company. Further the company was required to pay a sum of Rs. 1.09 crores by 1st of July, 2004 to the State Bank of India towards one time settlement of the dues of the company which worked out to a total sum of Rs. 27 crores. In these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndeed in the best interest of the company. The learned Company Judge thought it proper to pass such an order which will serve the interest of the company. We are not concerned with other considerations as to whether the revival of the company will serve its interest. The sick company has to repay the loans which it had taken from the State Bank of India. The offer made by the appellant-company is found to be less than the offer made by opposite party Nos. 4 and 5. That apart the plot of land measuring about 20 acres with factory and other structures thereon will remain untouched. By either selling this property or by setting up a new industry thereon it would serve the interest of the said company. The primary consideration for the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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