Confirmed auction of Raghu Fabrics Ltd. assets. Sanctioned acceptance of Rs.70 Lakhs bid by Spansules Formulations. Directed balance payment within 30 days.
Application accepted; Rs.70 Lakhs bid confirmed; balance of Rs.65 Lakhs due in 30 days; EMDs to unsuccessful bidders returned.
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THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY
Company Application No.1724 of 2011
23rd December, 2011
Between :-
M/s.Raghu Fabrics Ltd., (In Liqn) Rep.by the Official Liquidator, High Court of A.P., Hyderabad .. Applicant
And
Asset Reconstruction Company India Ltd., 17th Floor, Express Towers, Nariman Point, Mumbai, rep.by its Vice President ..Respondent
THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1724 of 2011
ORDER:-
This application has been filed by the Official Liquidator representing M/s.Raghu Fabrics Ltd., (in Liqn) under Section 457(1)of the Companies Act, 1956 read with Rules 9 and 11(b) of the Companies (Court) Rules, 1959, seeking confirmation of the auction conducted by the Official Liquidator on 4-11-2011 wherein M/s.Spansules Formulations, Hyderabad, became the highest bidder having offered Rs.70,00,000/-.
This Court by order dated 17-8-2011 passed in Company Application No.1405 of 2008 permitted the Official Liquidator to sell the assets of the Company (in Liqn) as one lot fixing the up-set price as Rs.56,00,000/- and EMD at Rs.5,00,000/-. Pursuant to the order passed by this Court, the Official Liquidator notified the sale in “The Indian Express” (English daily) and “Eenadu” (Telugu Daily) of Hyderabad Editions and Editions covering in Krishna District and conducted inter se bidding after opening the tenders in the presence of
secured creditors. Four persons participated in the inter se bidding. Smt.G.Rama Devi, Proprietrix of M/s.Spansules Formulations, Hyderabad, became the highest bidder having offered Rs.70,00,000/-. She has deposited EMD of Rs.5,00,000/-. No objections have been received from any quarter with regard to the auction proceedings conducted by the Official Liquidator on 4-11-2011.
Heard learned Counsel appearing for the applicant and the learned Counsel appearing for the respondent.
As could be seen from the affidavit filed in support of the application, four persons participated in the inter se bidding conducted on 4-11-2011. Smt.G.Rama Devi, Proprietrix of M/s.Spansules Formulations, Hyderabad, became the highest bidder having offered Rs.70,00,000/-. No objections have been received from any quarter with regard to the proceedings conducted by the Official Liquidator on 4-11-2011. In that view of the matter, I do not see any impediment in accepting the offer of Rs.70,00,000/- made by Smt.G.Rama Devi, Proprietrix of M/s.Spansules Formulations, Hyderabad.
Accordingly, the application is ordered accepting the offer of Rs.70,00,000/- (Rupees Seventy Lakhs only) made by Smt.G.Rama Devi, Proprietrix of M/s.Spansules Formulations, Hyderabad. She has to pay the balance amount of Rs.65,00,000/- (Rupees sixty five lakhs only) within thirty days from today. The Official Liquidator is permitted to return the E.M.Ds. of unsuccessful bidders on proper acknowledgment.
B.Seshasayana Reddy, J
23rd December, 2011 smr
2 issues framed by the court
Whether the court should confirm the auction of company assets to the highest bidder R.70 Lakhs.
Whether the offer made should be accepted as uncontested.
2 provisions across 1 enactments
M/s. Raghu Fabrics Ltd. (In Liqn) Rep. by the Official Liquidator
Asset Reconstruction Company India Ltd.
M/s. Spansules Formulations
B. Seshasayana Reddy
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
