9911796707
TMI Blog2019 (7) TMI 1358X X X X Extracts X X X X X X X X Extracts X X X X ..... Court directed sale of assets by following the procedure prescribed under the 1959 Rules, practically, there being not much of variation with respect to the procedure prescribed under the SARFAESI Act and 1959 Rules, in the facts of the present case, the difference, if any in procedure is not of much consequence. A part of the loan was extended to clear the arrears of the Syndicate Bank and the other part for expansion of the unit after revival. By the date of the applicant bank financing the company in liquidation, a part of the machinery was about eight-year old (originally the company was promoted in 1990s). It is but natural that machinery depreciates in value over the years and even under the Income Tax Rules, value becomes depreci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1956 and the same was directed to be wound up at the instance of the creditor in Company Petition No. 187 of 2012 vide orders of this Court dated 21.02.2013. The applicant bank had sanctioned term loan, on two occasions, of ₹ 315 lacs and ₹ 512 lacs in January 2009 and the company in liquidation had offered its plant and machinery along with land as collateral security and mortgaged the immovable properties in favour of the applicant bank apart from providing other securities and properties of the company and the promoters of the company in liquidation had also offered their private properties as security by creating equitable mortgage thereon. Subsequently, the company in liquidation became a sick unit and their operations f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... complying with the auction conditions in all respects. Inasmuch as the auction was conducted, the properties are required to be delivered to the successful bidder / auction purchaser and necessary documentation is required to be carried out to enable the latter to take possession of the property. Hence, the present Application was filed to permit the applicant to receive the balance sale consideration, appropriate the same and thereafter, register the sale certificate in favour of the highest bidder i.e. the 3rd respondent. The auction purchaser filed I.A. 1 of 2019 detailing their participation and their becoming successful bidder in the auction and payment of ₹ 7.01 crores to the applicant bank. It is asserted by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocedure as laid down by the Supreme Court in terms of the Rules, thus, the sale cannot be confirmed. The Official Liquidator submits that valuation of subject property in 2014 was given as ₹ 11 crores and now the same was reduced to ₹ 7 crores and it is not at all justifiable. Sri Deepak Bhattacharjee , learned Senior Counsel for the applicant refuting the allegations of the Official Liquidator would submit that the Official Liquidator had set out the chronology of events starting from 19.11.2014, responding to the letter received from the Official Liquidator, how the applicant bank from time to time had kept the Official Liquidator informed with regard to valuation of the properties and the dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since the auction purchaser s offer was acceptable, confirmation of sale was done in favour of the auction purchaser, which had also complied with the terms of the auction by depositing the amount. The learned counsel appearing for the auction purchaser would submit that the auction purchaser intends to revive the company and each day s delay would further complicate the matter and they are required to bring in additional capital of ₹ 3 to 5 crores to make the unit operational. It is only on account of their experience and exposure in the industry the auction purchaser with an intention to revive the company had participated and the valuation offered by them is just and fair and hence, prays for confirmation of the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e procedure prescribed under the SARFAESI Act and 1959 Rules, in the facts of the present case, the difference, if any in procedure is not of much consequence. There is no dispute that the auction was conducted in terms of the SARFAESI Act and the Rules and there was no allegation of any irregularity in conducting the auction. Though in 2014, the valuation of the assets was ₹ 11 crores, a perusal of the valuation report discloses that the valuation of the land remained same, however, that of the machinery has deteriorated which is but natural. On the directions of this Court, during the arguments, the applicant bank had placed on record the original letter sanctioning the loan in favour of the company in liquidation. It discloses that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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