Disposed

Official Liquidator of M/S Esskay Pharmaceuticals Ltd. v. the General Manager India Sme Asset Reconsturction Co. Ltd.

Gujarat HC7 May 2018OLR/48/2018

Case brief

AI extract

What is this about?

The Single Judge approved the official liquidator's report to sell company assets in liquidation. The court sanctioned the upset price of Rs. 3.35 crore, the 10% EMD, and the appointment of an e-auction agency over the coming month.

What did the court decide?

Approval of upset price, EMD, and e-auction process; permission to issue advertisements.

Official Liquidator of M/S Esskay Pharmaceuticals Ltd… — Company and Corporate | Gujarat HC (2018)

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C/OLR/48/2018 ORDER

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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

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R/OFFICIAL LIQUDATOR REPORT NO. 48 of 2018

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In COMPANY PETITION NO. 289 of 1997

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

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OFFICIAL LIQUIDATOR OF M/S ESSKAY PHARMACEUTICALS LTD

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Versus

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THE GENERAL MANAGER INDIA SME ASSET RECONSTURCTION CO LTD

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

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MS KJ BRAHMBHATT(202) for the PETITIONER(s) No. 1 for the RESPONDENT(s) No. 1,2

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

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CORAM: HONOURABLE MR.JUSTICE C.L. SONI

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Date : 07/05/2018 ORAL ORDER

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Following are the prayers made in paragraph No.10 of the present report:

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“a) This Hon’ble High Court may be pleased to approve the Upset Price and EMD for sale of the assets and properties of the Company in liquidation as stated in para-8 (Table-”A”) of this report or such other upset price, EMD, as may be considered appropriate by this Hon’ble Court.

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b) This Hon’ble High Court may be pleased to permit the Official Liquidator to issue advertisement in newspapers namely “Gujarat Samachar” Gujarati Daily in All Gujarat Editions and “Times of India” All Gujarat Edition for inviting offers for sale of assets of the company in liquidation or in such other newspapers as may be considered appropriate by this Hon’ble Court and also permit the Official Liquidator to make the payment of advertising agency on receipt of the bill from the

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Page 1 of 4

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C/OLR/48/2018 ORDER

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common pool fund of various company in liquidation as maintained by the Official Liquidator subject to adjustment against the sale consideration to be received in Company account.

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c) This Hon’ble High Court may be pleased to approve the sale schedule for the assets of the Company in liquidation as stated in para-8 of this report or such other schedule, as may be considered appropriate by this Hon’ble Court.

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d) This Hon’ble High Court may kindly permit the Official Liquidator to conduct e-auction through e-auction agency M/s. E-procurement Technologies Ltd. and may kindly approved Terms and Conditions dated 19-01-2018 of the said agency for sale of assets of the Company on date as may be fixed and subject to confirmation by this Hon’ble Court.

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e) This Hon’ble High Court of may further permit the Official Liquidator to filed further report for confirmation of sale upon completion of bidding process and after receipt of report from the e-auction agency or as may be directed in this regard by the Hon’ble High Court of Gujarat.

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f) This Hon’ble High Court may be pleased to pass such further and other orders and directions as may be considered just and appropriate in facts and circumstances of the case.”

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For the properties of the company in liquidation, the sale committee has recommended that the properties described in paragraph No.8 of the report may be sold at the estimated average fair market value of Rs.3,35,00,000/- and as upset price at the same value with EMD at 10% of the upset price.

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In the report, the suggestion is also made to permit auction of

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Page 2 of 4

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C/OLR/48/2018 ORDER

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properties by e-auction process through suitable e-auction agency and for the purpose of wide circulation of sale proclamation, it is suggested that the advertisement be permitted to be given in ‘Times of India’ in English Script and in all Gujarat Editions of ‘Gujarat Samachar’ in Gujarati Script. It is stated that the sale committee has unanimously approved the terms and conditions of M/s. e-procurement Technologies Ltd. to be engaged for the purpose of carrying out e-auction subject to approval of this Court. It is stated that such agency has agreed to provide e-auction platform as per the terms and conditions approved by the sale committee.

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Learned advocate Ms.Brahmbhatt appearing for the Official Liquidator submitted that the recommendations made by the sale committee for the purpose of fixing upset price with EMD and for e- auction may be approved and the Official Liquidator may be permitted to issue sale proclamations in two different newspapers as suggested in the report. She has also suggested the sale schedule as under:

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SALE SCHEDULE

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Date of Advertisement	: 15/05/2018
Date of issuance of Tender forms	: 17/05/2018
Date of inspection of Properties	: 22/05/2018 (between 11:30 AM to 4:30 PM)
Last date of receipt of Offer/	: 06/06/2018
Tender forms
Auction/Inter-se-bidding in the	: 15/06/2018

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Page 3 of 4

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C/OLR/48/2018 ORDER

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the Hon’ble High Court of Gujarat, at Ahmedabad

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The Court, having heard learned advocate Ms.Brahmbhatt and having perused the minutes of the meeting of the sale committee as also the valuation report at page No.30, finds that the upset price and the EMD as recommended by the sale committee could be fixed for sale of the properties of the company and the Official Liquidator could also be permitted to hold auction through e-auction process and to publish advertisement as suggested in the report.

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In view of the above, it is ordered that the upset price and EMD for sale of the properties of the company shall be Rs.3,35,00,000/- and Rs.33,50,000/- respectively. The Official Liquidator is permitted to conduct the auction of the properties through e-auction process by engaging M/s. e-procurement Technologies Ltd. as per the terms and conditions dated 19.01.2018 approved by the sale committee. The sale proclamation shall be issued in Gujarati Daily ‘Gujarat Samachar’ in all Gujarat Editions in Gujarati Script and in English Daily ‘Times of India’ in English Script. The sale schedule for the sale of the properties of the company shall be as suggested by Ms.Brahmbhatt. On completion of the e-auction process, the Official Liquidator shall file appropriate report before the Court. The present 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 Esskay Pharmaceuticals Ltd. v. the General Manager India Sme Asset Reconsturction Co. Ltd.

Case brief

What is this about?

What did the court decide?

Official Liquidator of M/S Esskay Pharmaceuticals Ltd. v. the General Manager India Sme Asset Reconsturction Co. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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