9911796707
TMI Blog2004 (9) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court has been put in charge of the winding up operations of the Company ever since the order was passed for winding up of the company and has been taking steps for realization of the assets. 3. M/s. Karnataka State Industrial Investment and Development Corporation is a secured creditor of the Company under liquidation and it appears the secured creditor had taken over the factory unit of the Company under liquidation in exercise of its powers under section 29 of the State Financial Corporations Act even prior to the winding up order the State Financial Corporations Act even prior to the winding up order having came to be passed by this Court. As on the day, when the winding up order was passed, M/s. KSIIDC was in charge of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... har, learned counsel appearing for the applicant that the sale was one free from encumbrances even as indicated in the sale deed executed by M/s. KSIIDC on 29-1-2003 that is much later to the confirmation of sale, that was so in terms of a minutes recorded at a meeting of creditors etc., held on 12-7-2000 and as such any liability that had been attached to the property which is sold free of encumbrances should be discharged by the Company that which in effect means by the Official Liquidator who is now in charge of the Company and as non- payment of this amount has come in the way of the purchaser reaping full benefit of his purchase, the present application is made for issue of such directions to the Official Liquidator. 9. Objection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el appearing for the Official Liquidator that an application of this nature cannot be entertained inasmuch as any property sold by the Official Liquidator for realising the assets of a company under liquidation is always on an as is where is basis and the purchaser takes all liabilities that have attached to the property and there is no assurance on the part of the Official Liquidator for doing anything further than to hand over the property in question, in the instant case, the effort to sell the property had been made by M/s. KSIIDC, the secured creditor and the role of the Official Liquidator was only to ensure that the sale was not a distress sale, in the sense that the legitimate entitlement of other creditors were not defeated in any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nveyed by reason of any law or defect or want of title on the part of the Corporation or any other reason whatsoever relating to the title or the breach of any of the covenants and conditions herein and the Corporation hereby also covenants that the said property is free of all encumbrances and all charges and the same is not subject to any equitable mortgage, or any other form of mortgage, charge, attachment before judgment, execution proceedings etc. and the same has been conveyed without any encumbrances whatsoever." 13. Sri Ashok B. Hinchigeri, learned Counsel appearing for the Corporation, which has executed the sale deed submits that the Corporation does not assure any purchaser to clear charges or arrears of any taxes etc., in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion within the limits of statutory provisions. An assurance which cannot even be given by the Official Liquidator cannot be given by any one else also, if the asset of a company under liquidation is being sold even under the permission of the Court by such other person and in the instant case by a secured creditor. 16. While it is not possible and permitted in law to direct the Official Liquidator to make payment of the amounts due to the Panchayat and the electricity company in full and final settlement of some of the dues due to them in preference and at the instance of a person like the applicant from out of the sale proceeds realized from the assets of the company under liquidation, even as to the entitlement of the applicant the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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