Allowed

Official Liquidator v. Gol Offshore Limited

Bombay HC7 Feb 2020OLR/27/2020

Case brief

AI extract

What is this about?

The High Court allowed the Official Liquidator's report confirming the sale of three vessels (Gal Installer, Malaviya-Three, Malaviya-One) to highest bidders K.G. Salvage Corporation, Rajnish Steels, and Bansal Ship Breakers respectively, based on competitive public bidding, and directed the Controller of Homestyles to implement the sale.

What did the court decide?

Sale of three vessels to K.G. Salvage Corporation, Rajnish Steels and Bansal Ship Breakers respectively confirmed with respect to Official Liquidator's report.

Official Liquidator Vs Gol Offshore Limited — Company and Corporate | Bombay HC (2020)

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1 59) olr27-2020.doc

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SAS

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

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ORDINARY ORIGINAL CIVIL JURISDICTION

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OFFICIAL LIQUIDATOR’S REPORT NO.27 OF 2020 IN COMPANY PETITION NO.27 OF 2014 AND

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COMPANY PETITION NO.119 OF 2015

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In the matter of Companies Act, 1 of 1956;

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And

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In the matter of GOL OFFSHORE Limited (in Liqn.)

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Export Import Bank of India

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AND

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Punjab National Bank (International) Ltd.

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..Petitioners.

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Mr.Mahendhra Aithe, Company Prosecutor for the Ofcial Liquidator.

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Mr.Vikrant D.Shetty i/b,. Taurus Legal for K.E. Salvage.

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Mr.Rajnish Gupta for Rajnish Steels.

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Mr.Ashok Jain for ACE Ship Recyle Pte Ltd.

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CORAM : S.C. GUPTE, J.

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DATE : FEBRUARY 7, 2020

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2 59) olr27-2020.doc

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P.C. :-

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In this OLR, directions are sought towards sale of three vessels owned by the company in liquidation

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RE : GAL INSTALLER

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Three ofers have been received in response to the public notice issued by the Ofcial Liquidator. The ofer from Ace Ship Recycle Pte Ltd. is for Rs.2.50 crores, whereas the ofer fom K.E.Salvage Corporation is for Rs...52 crores and from Rajnish Steels is for Rs.3.75 crores. The ofers have been given with the payment of the requisite EMDs.

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The ofer of K.G.Salvage of Rs...52 crores being the highest bid received so far, the rival bidders were asked to better their ofers. Bidding took place thereupon amongst the aforesaid three bidders present in Court. After such bidding, final ofer of Rs.5.52 crores placed by K.G.Salvage is found to be the highest ofer. No other bidder is prepared to ofer anything above that ofer. The ofer of K.G.Salvage is accordingly accepted and the sale of the vessel Gal Installer is confirmed in its favour. EMD of Rs.1r crore paid by K.G. Salvage may be apportioned towards sale of the vessel to it. The balance payment shall be made in accordance with the terms and conditions of sale notice communicated to the parties by the Ofcial Liquidator, i.e. within 1r5 working days from today. Upon payment of the entire price, a sale certificate shall be issued immediately and the purchaser shall

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3 59) olr27-2020.doc

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be given possession of the vessel. It is made clear that port dues and other outgoings in respect of the vessel shall be borne from today onwards by the purchaser.

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.. EMD of other bidders, namely, Ace Ship Recycle Pte Ltd. and Rajnish Steels, may be returned by the Ofcial Liquidator to these parties immediately.

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Re : MALAVIYA-THREE

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So far as MALAVIYA-THREE is concerned, four ofers have been received. The first ofer of Rs.1r.0. crores is by Hatimi Steels; the second of K.E. Salvage Corporation, is for Rs.1r.52 crores; the third of Rajnish Steels is for Rs.1r.1r1r crores and of Shree Sai Baba Ship Breaking Co. is for Rs.1r.1r5 crores. The four parties present in Court were thereafter asked to bid. After bidding inter se between the parties, the ofer of Rajnish Steels of Rs.1r.27 crores appears to be the highest ofer; no other bidder is willing to go over it. Accordingly, the ofer of Rajnish Steels of Rs.2.1r7 crores is accepted and the sale is confirmed in its favour. EMD paid by the party be adjusted accordingly towards the sale.

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EMD of other bidders, namely, K.E.Salvage Corporation, Shree Sai Baba Ship Breaking Company and Hatimi Steels, may be returned by the Ofcial Liquidator to these parties immediately.

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The claim of K.E. Salvage Corporation who have carried out the salvage operations, shall be adjudicated by the

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4 59) olr27-2020.doc

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Ofcial Liquidator within a period of four weeks from today.

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Re : MALAVIYA-ONE

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So far as MALAVIYA-ONE is concerned, in response to sale notice issued by the Ofcial Liquidator, five ofers were received. Amongst these ofers, Bansal Ship Breakers’ ofer of Rs.1r.78 crores is the highest ofer. The ofer was announced in Court and other bidders were asked to increase their ofer. None of the bidders, however, ofered any price over and above R.1r.78 crores ofered by Bansal Ship Breakers. The ofer of Bansal Ship Breakers is broadly in keeping with the valuation report of the valuer and also particularly considering that the vessel is sinking, the ofer of Bansal Ship Brekers of Rs.1r.78 crores is accepted and the sale is confirmed in its favour. EMD of the party be adjusted towards the sale.

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EMD of the other bidders be returned to them immediately.

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1r0. The Ofcial Liquidator’s report is allowed in terms of prayer clauses (a), (b) and (c) and in the above terms.

Official Liquidator v. Gol Offshore Limited

Case brief

What is this about?

What did the court decide?

Official Liquidator v. Gol Offshore Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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