The Official Liquidator of City Limouzines (India) Ltd… — Company and Corporate | Bombay HC (2025)

The Official Liquidator of City Limouzines (India) Ltd… — Company and Corporate | Bombay HC (2025)

What the court decided

AI extract

Outcome

OLR allowed in terms of prayer clauses (a) to (f); Official Liquidator permitted to replace Exhibit 'B' (draft sale notice and draft terms and conditions of sale) within one week; reserve price fixed at Rs. 2.75 crores and EMD at Rs. 27.50 lakhs on the valuation report (report resealed); directions on outstanding advertisement-agency bills and deposit of sale proceeds deferred until sale is undertaken and confirmed; OLR disposed of with liberty to approach the Court on prayer clause (g) at the confirmation stage; Official Liquidator to take consequential steps.

Issue for consideration

Whether to grant the Official Liquidator's sought approvals for sale of the Andheri Property (Flats Nos. 113, 114 and 115, Building No. 23, Samarth Nagar III, Oshiwara, Andheri (W), Mumbai – 400053), including permitting replacement of the draft sale notice and draft terms and conditions of sale at Exhibit 'B', as covered by prayer clauses (a) to (f). +3 more

Court's answer

The Official Liquidator is permitted to replace the draft sale notice and draft terms and conditions of sale at Exhibit 'B' collectively, within one week.

Ratio / Principle

Upon perusal of the valuation report (taken out of its sealed envelope), the reserve price for the Andheri Property is fixed at Rs. 2.75 crores and the EMD is fixed at Rs. 27.50 lakhs; the valuation report is put back in a sealed cover.

Key takeaways

The directions sought regarding payment of outstanding bills of the advertisement agency and deposit of sale proceeds are deferred; they can wait till the process of sale is undertaken and is eventually confirmed by the Court.ratio¶26
The OLR is allowed in terms of prayer clauses (a), (b), (c), (d), (e) and (f), with the Official Liquidator to take consequential steps accordingly.ratio¶33
The OLR is disposed of in the above terms, with liberty to the Official Liquidator to approach the Court again for appropriate directions in terms of prayer clause (g) after the process of sale is undertaken and is at the stage of confirmation.

Detailed headnote1 paragraphs

Bombay High Court (O.O.C.J.) — Official Liquidator's Report No. 34 of 2024 in Company Petition No. 234 of 2010 (Manish Pitale, J.; decided 24 January 2025). In the matter of M/s. City Limouzines (India) Ltd. (in liquidation) and M/s. City Realcom Ltd. (in liquidation), under the Companies Act, I of 1956, with Prasad Mhatre and SureShot Advertising as Petitioners; Mr. Ranjeev Carvalho appeared for the Official Liquidator. The Official Liquidator sought directions for sale of the Andheri Property (Flat Nos. 113, 114 and 115, Building No. 23, Samarth Nagar III, Oshiwara, Andheri (W), Mumbai – 400053), earlier sale attempts having failed, and sought approval of the sale notice and terms and conditions of sale. The Court permitted the Official Liquidator to replace the draft sale notice and draft terms and conditions at Exhibit 'B' within one week; opened the sealed envelope containing the valuation report and, on perusal, fixed the reserve price at Rs. 2.75 crores and the EMD at Rs. 27.50 lakhs, putting the report back in a sealed cover. The OLR was allowed in terms of prayer clauses (a) to (f); the prayers relating to outstanding advertisement-agency bills and deposit of sale proceeds were deferred until the sale process is undertaken and confirmed; and the OLR was disposed of with liberty to the Official Liquidator to approach the Court afresh on prayer clause (g) once the sale reaches the confirmation stage.

bipin prithiani

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9-olr-34.24.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

OFFICIAL LIQUIDATOR’S REPORT NO. 34 OF 2024 IN

COMPANY PETITION NO. 234 OF 2010

In the matter of The Companies Act, I of 1956;

AND

In the matter of M/s. City Limouzines (India) Ltd. (in liquidation)

In the matter of M/s. City Realcom Ltd. (in liquidation)

Prasad Mhatre 2) SureShot Advertising

… Petitioners

Mr. Ranjeev Carvalho for Official Liquidator. Mr. Chandan Kumar, Official Liquidator. Ms. Nikita Yadav, Assistant Official Liquidator.

CORAM: MANISH PITALE, J. DATE : 24^th JANUARY 2025

P.C. :

. Heard learned counsel for the official liquidator.

BIPINDHARMENDERPRITHIANI Digitally signed byBIPIN DHARMENDERPRITHIANIDate: 2025.01.2710:11:55 +0530

By this Official Liquidator’s Report (OLR), the official liquidator is seeking appropriate directions for sale of immovable property belonging to the company in liquidation i.e. Flat

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bipin prithiani

Nos.113, 114 and 115 located in Building No.23, Samarth NagarIII, Oshiwara, Andheri (W), Mumbai – 400053, referred to as the Andheri Property. It is brought to the notice of this Court that earlier attempts for sale of the said property had not succeeded and therefore, a further attempt is being made. In that light, the official liquidator is seeking the approval from this Court of sale notice and the terms and conditions of sale. At this stage, the learned counsel for the official liquidator submits that the draft sale notice and draft terms and conditions of sale at Exhibit ‘B’ collectively, may be permitted to be replaced in the interest of justice.

In view of the above, the official liquidator is permitted to replace the Exhibit ‘B’ collectively, within one week from today.

The other directions sought in the OLR pertain to payment of outstanding bills of the advertisement agency and to permit the official liquidator to deposit amount of the sale proceeds from the Andheri property in the account of the M/s. City Limizounes (India) Ltd. (in liquidation). The aforesaid prayer clause can wait till the process of sale is undertaken and it is eventually confirmed by this Court.

In order to ascertain the reserve price and EMD, in respect of the said property, this Court has opened the sealed envelope containing the valuation report.

Upon perusal of the valuation report, the reserve price for

bipin prithiani

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9-olr-34.24.doc

the property is fixed at Rs.2.75 crores and the EMD is fixed at Rs. 27.50 lakhs. The valuation report is put back in a sealed cover.

The OLR is allowed in terms of prayer clauses (a), (b), (c), (d), (e) and (f).

The official liquidator to take consequential steps accordingly.

At this stage, the learned counsel for the official liquidator submits that this Court may consider reserving liberty for the official liquidator to seek appropriate directions in terms of prayer clause (g) after the process of sale is undertaken and the same is at the stage of confirmation.

In that light, the OLR itself is disposed of in above terms, with liberty to the official liquidator to approach this Court again for appropriate directions in terms of prayer clause (g).

MANISH PITALE, J.