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TMI Blog2007 (7) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmation of the sale of the movable and immovable properties of M/s. Scanomax India Ltd., a company under liquidation, in favour of M/s. International Fresh Farm Products (India) Ltd., Mohali (respondent No. 4 herein) who is the highest bidder in the sale conducted by the sale committee constituted by this court. 2. Vide order dated February 21, 1997, passed by this court in C.P. No. 7 of 1996, M/s. Scanomax India Ltd., was ordered to be wound up and official liquidator attached to this court was appointed as its liquidator. Subsequently, the movable and immovable properties of the company under liquidation were sold by the official liquidator in a public auction for Rs-2-50 crores, but the sale was not confirmed by this court vide order dated September 21, 2006, passed in C.A. No. 591 of 2006. While passing the said order, this court constituted a sale committee under the chairmanship of Shri I.P. Singh, advocate of this court with the representatives of the secured creditors and official liquidator as its members. The said sale committee in its meeting dated October 18, 2006, decided to get fresh valuation of the assets/properties of the company under liquidation. The s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proval from the competent authority, and 15 days time was also given to the highest bidder after the receipt of such approval to deposit 25 per cent of the bid money after adjusting the initial earnest money. The representatives of the secured creditors were requested to ensure that the decision regarding seeking approval from the competent authority should be taken by all the secured creditors within that 15 days period so that proceedings of the auction could be finalized. 4. Within 15 days, all the secured creditors, including PSIDC intimated in writing to the official liquidator that the highest bid given by International Fresh Farm Products (India) Ltd., (respondent No. 4 herein) has been accepted by the competent authority. The letter given by PSIDC to the official liquidator is dated May 4, 2007, which has been annexed with this application as annexure A6. After receiving the intimation from all the secured creditors, the official liquidator accepted 25 per cent of the bid amount paid by respondent No. 4 towards the sale consideration. When all the formalities were completed, the official liquidator filed the instant application for confirmation of the sale. 5. When ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cting the re-auction. ( ii )that the Corporation will bear the expenses of security charges for the time taken in the re-auction and for confirmation of the sale. ( iii )that the Corporation will also bear the loss in case the property is sold for less than Rs. 4.21 crores in the re-auction. Counsel for respondent No. 1 PSIDC seeks three days time to seek instructions from the Corporation. If the Corporation is ready to accept the aforesaid conditions then the re-auction can be ordered. The matter of confirmation of sale will also be considered on the next date and in case the Corporation declines to accept the aforesaid conditions, the decision will also be taken about the loss caused because of the stand taken by the respondent-Corporation." 6. In pursuance of the abovesaid order, respondent No. 1 filed C. A. No. 460 of 2007 submitting its written submission. As per the application, respondent No. 1 has agreed with conditions Nos. 1 and 2. However, they have shown disagreement to condition No. 3. 7. On the other hand, counsel for the official liquidator and other secured creditors opposed the prayer of respondent No. 1 for re-auctioning the properties of the compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommittee dated October 18, 2006 and March 12, 2007, in which the representatives of respondent No. 1 also participated, submitted that all the secured creditors, including respondent No. 1 took the decision to get the valuation report prepared from M/s. NITCON, a Government enterprise and the said responsibility was given to one of the secured creditors, i.e. , PFC, which is again a Government enterprises. Counsel further submitted that it was decided in the meeting of the sale committee that the valuation report will be supplied by the aforesaid valuer in the sealed cover. When the said report was received in the sealed cover by the chairman, it was made available to all the members of the sale committee including the representative of all the secured creditors. The representatives of all the secured creditors were satisfied with the valuation report and nobody raised any objection to the same. Thereafter, the tenders were opened and inter se bidding between four bidders was conducted. M/s. International Fresh Farm Products (India) Ltd., gave the highest bid of Rs. 4.21 crores. All the members of the sale committee including the representatives of the secured creditors showed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing respondent No. 1 on March 12, 2007. None of the secured creditors, including respondent No. 1 raised any objection to the valuation report. Rather, all the secured creditors showed their satisfaction over the valuation report. The representatives of respondent No. 1 also showed their satisfaction to the valuation report and thereafter the tenders were opened and inter se bidding was conducted in which respondent No. 4 gave the highest bid. Thereafter, 15 days time was given to all the secured creditors to get approval of the highest bid from the competent authority. Respondent No. 1 gave its approval in writing to the official liquidator, a copy of which has been annexed as annexure A6 to the effect that they have no objection if the highest bid is accepted and a request was made to the official liquidator to move an application for confirmation of the sale in favour of respondent No. 4 at the earliest. Even thereafter for two months, they did not raise any objections. It appears that subsequently respondent No. 1 with some oblique motive raised objections to the confirmation of the sale in favour of the highest bidder, which in my opinion, is not justified at all. This court g ..... 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