Allowed

Official Liquidator of M/S Tai Chongbang Ind. Ltd. v. Dena Bank

Gujarat HC2 May 2018OLR/21/2018

Case brief

AI extract

What is this about?

The Gujarat High Court accepted offers of Rs.43 lac each for two bungalows from intending purchasers Kailashben M. Jhala and Bhavnaben R. Jhala in a company liquidation sale after the previous bid was below the upset price, dismissing the earlier low offer.

What did the court decide?

Offers of Rs.43 lac for Lot No.1 and Lot No.2 sold bungalows accepted; sales confirmed in favor of Bhavnaben R. Jhala and Kailashben M. Jhala respectively.

Official Liquidator of M/S Tai Chongbang Ind. Ltd. Vs Dena Bank — Gujarat HC (2018) — LawSathi Research

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C/OLR/21/2018 ORDER

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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

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R/OFFICIAL LIQUDATOR REPORT NO. 21 of 2018

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========================================================== OFFICIAL LIQUIDATOR OF M/S TAI CHONGBANG IND. LTD.

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Versus DENA BANK

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========================================================== Appearance:

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MR SAURABH M PATEL(5019) for the PETITIONER(s) No. 1 NOTICE SERVED BY DS(5) for the RESPONDENT(s) No. 1,2,3

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==========================================================

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CORAM: HONOURABLE MR.JUSTICE C.L. SONI

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Date : 02/05/2018 ORAL ORDER

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In order dated 23.03.2018, the Court observed in para No.5 as under:

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“5. The Court finds that the offer received from sole bidder is below upset price. Therefore, it is not possible to accept such offer. When it was stated to the husband of Bhavnaben that since offer of Bhavnaben for purchase of property of Lot No.1 was below the upset price, it cannot be accepted, he stated before the Court that the offer for purchase of the property could be increased upto the upset price and he also stated that if the Court accepts the offer to purchase property of Lot No.1 at the upset price, he may also come forward to purchase the Lot No.2 property for the price equal to upset price. For consideration of the above and for learned advocate Mr.Patel to point out as to how many attempts were made earlier for sale of the two lots – properties of the company in liquidation, the report is adjourned to 5^th April 2018. The documents of offer received and undertaking taken out from the sealed cover are ordered to be placed in the cover to be sealed and sealed cover now be kept with the Official Liquidator.

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Page 1 of 4

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C/OLR/21/2018 ORDER

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S.O. to 5^th April 2018. ”

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Thereafter, the Official Liquidator filed report dated 05.04.2018 pointing out that earlier, the sale proclamation was issued for sale of properties of the company in liquidation – Bungalow No. T-21 and T-22 situated at Riddhi Siddhi Bungalows, Opposite Hero Honda Showroom, Sanand Ahmedabad Highway, Sanand, Ahmedabad where, the upset price was decided to be fixed at Rs.52 lac for each bungalow, and compliance of the order made by the Court for publication for sale proclamation, the sale proclamation was issued but no offer was received from any intending purchaser. The Court then permitted Official Liquidator to issue sale proclamation for the second time by fixing the upset price at Rs.41 lac for each Bungalow as recommended by the sale committee.

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The Court, when on earlier date of hearing, perused the papers of Official Liquidator’s Report No.158 of 2017 and found that for each of the bungalows, the fair market price was arrived at Rs.45.35 lac in the valuation report, asked learned Senior advocate Mr.Bharat Naik, who represented the intending purchaser, as to whether his client was agreeable to increase the offer so as to bring her offer near to Rs.45 lac to purchase one Bungalow. Then on the next date of hearing, Mr.Naik stated before the Court that considering the dues of the electricity, the property tax dues and the dues of the society, which will required to be discharged by the purchaser, the intending purchaser could raise the offer upto Rs.43 lac.

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When it was put to learned advocate Mr.Patel appearing for the Official Liquidator whether such offer of Rs.43 lac for each bungalow could be accepted, Mr.Patel stated before the Court that considering the dues of the electricity, the property tax and dues of

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Page 2 of 4

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C/OLR/21/2018 ORDER

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the society, the Court may consider the offer.

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The Court found that since in earlier attempt, no person came forward with any offer to purchase the properties of the company in liquidation and this time also, single offer was received to purchase one bungalow at Rs.37 lac, which is now raised to Rs.43 lac, it could be accepted. It was at that stage, learned Senior advocate Mr.Bharat Naik stated before the Court that as recorded by this Court in the order dated 23.03.2018, since the intending purchaser stated before the Court that if the Court was to accept his offer, he would even come forward to purchase second bungalow, i.e., Lot No.2 property, the Court may consider his offer for second bungalow and permit execution of the document for the second bungalow, i.e., Lot No.2 property in the name of nominee to be suggested by the intending purchaser as such nominee was none other than the sister-in-law of intending purchaser. However, the Court expressed to Mr.Naik that the execution of any document for sale of the properties of the company was not permissible in the name of nominee, and therefore, if at all second bungalow was to be purchased in the name of the sister-in-law of the intending purchaser, it was open to the sister-in-law to send her offer.

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Today, Mr.Patel appearing for the Official Liquidator states before the Court that he has received offer from Kailashben M. Jhala in sealed cover. Mr.Patel is asked to open the sealed cover. On opening the sealed cover, it is found that Ms.Kailashben M. Jhala has made offer of Rs.43 lac to purchase the second bungalow No.T-22. Such offer is sent in the sealed cover with the cheques for EMD amount of Rs.4,10,000/- and the late fee charge of Rs.10,000/-.

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The Court finds that the above two offers for two bungalows are since above the upset price, such offers could be considered. The respondents to whom the notice was served have chosen not to

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Page 3 of 4

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C/OLR/21/2018 ORDER

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appear before the Court. When no offer was received in earlier attempt made for purchase of the above two properties, the Court deems it appropriate to accept the offer of Rs.43 lac from each of the offerers for sale of each bungalow – the property at Lot No.1 and property at Lot No.2.

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In view of the above, the above offers are accepted. The sale in favour of the offerer named Bhavnaben R. Jhala shall stand confirmed for Bungalow No.T-21, which is referred as the property of Lot No.1, for Rs.43 lac subject to her complying with usual terms and conditions. Similarly, the sale for the bungalow No.T-22, referred as the property of Lot No.2, shall stand confirmed in favour of the second offerer Kailashben M. Jhala for Rs.43 lac subject to her complying with terms and conditions for sale of the properties of the company. The official Liquidator is now permitted to deposit the demand drafts received from the offerers in the company’s account. The report stands disposed of.

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(C.L. SONI, J)

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GUPTA*

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Page 4 of 4

Official Liquidator of M/S Tai Chongbang Ind. Ltd. v. Dena Bank

Case brief

What is this about?

What did the court decide?

Official Liquidator of M/S Tai Chongbang Ind. Ltd. v. Dena Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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