Application sought confirmation of a land sale offer of Rs. 1.80 crore. The Court dismissed it because an auction had generated a higher bid of Rs. 2.85 crore. The Official Liquidator directed to refund the earnest money.
Application dismissed; Official Liquidator directed to return EMD to unsuccessful bidders.
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HONOURABLE SRI JUSTICE A.RAJASHEKER REDDY
Company Application No.1143 of 2014
O R D E R :
This application is filed to confirm the sale of total land admeasuring Ac.75.31 cents put for sale under Lot No.1, together with Cashew nut trees, teak trees, mango trees, bamboo plantation, eucalyptus trees, mangeum trees etc. falling in Sy.Nos.95, 96/2, 96/3, 99, 100, 101/2, 102, 113 situated at Sankaram Village, Madugula Mandal, Visakhapatnam District, belonging to the company (in liqn.) in favour of the applicants herein by directing the Official Liquidator to initially receive the EMD amount of Rs.18,00,000/- and receive Rs.50,00,000/- within one month from the date of confirmation order and thereafter receive the balance sale consideration of Rs.1,12,00,000/- within two months from the date of order of confirmation, at the time of registration.
In the affidavit filed in support of this petition it is stated that the 2nd respondent has approached the applicants stating that he is the Ex-Managing Director of M/s.Sri Vijetha Horticulture (India) Limited (in liqn.) and the said company is the owner and possessor of land admeasuring Ac.75.31 cents together with Cashew nut trees, teak rees, mango trees, bamboo plantation, eucalyptus trees, mangeum trees etc. falling in Sy.Nos.95, 96/2, 96/3, 99, 100, 101/2, 102, 113 situated at Sankaram Village, Madugula Mandal, Visakhapatnam District and that the Honourable Company Court had given him permission to identify a suitable buyer, who can buy the landed property of the company (in liquidation), at least at Rs.1,75,00,000/-. Further he had represented the applicants that the Official Liquidator has addressed a letter to him dated 09.07.2013 stating that “you are requested to inform about the publication of the sale notice to the intending purchasers in order to get better offers to purchase the above said property and you are also advised to be present on 17.07.2013 at Sankaram Village, Madugula Mandal, Visakhapatnam District and on 18.07.2013 at Lova Krishnapuram Village, Madugula Mandal, Visakhapatnam District, to explain about the property, its boundaries etc. to the intending bidders”. It was further informed to the applicants that as on that date, the above referred land was not sold and the same is available to be purchased by the applicants over and
above Rs.1,75,00,000/-.
As per the information given by the 2nd respondent the applicants personally inspected the land and having gone through the papers, the orders passed by this Court, the applicants herein are interested to purchase the above mentioned land for a total consideration of Rs.1,80,00,000/-. It is also stated that the applicants are willing to deposit the amounts as per the terms and conditions of the publication made by the Official Liquidator, and to show the bonfides in purchasing the above mentioned property they already obtained a Demand Draft bearing No.226400 drawn on State Bank of India, Visakhapatnam branch, dated 13.09.2014, for a sum of Rs.18 lakhs to be deposited as EMD. The copy of the same is also filed.
The Official Liquidator filed his report on 22.09.2014 stating that there is stiff competition among the bidders for purchase of the property. This Court on 23.09.2014 after perusing the report filed by the Official Liquidator directed him to hold fresh negotiations among all the persons who are interested in purchasing the property. As directed by this Court negotiations were held on 08.10.2014 for sale of the subject land and Sri M.Krishna Rao offered Rs.2.85 lakhs. In view of the same, this Court on 20.10.2014 permitted the Official Liquidator to issue fresh paper publication in two newspapers for sale of the subject property. Thereafter, the Official Liquidator caused publication of sale of notice of Lot No.1 and Lot No.2 on 28.10.2014 & 29.10.2014. Subsequently, on 27.11.2014 auction proceedings were conducted in respect of the above said property put for sale under Lot Nos.1 and 2 and the highest offer was made by Sri Sri M.Krishna Rao for Rs.2,85,00,000/- for the property put for sale under Lot No.1 and Rs.91,00,000/- for the property put for sale under Lot No.2.
In view of the above and in view of the fact that the offer made by the applicants in the present application is less than the offer made by the bidder in the auction conducted on 27.11.2014, this application is dismissed. However, the Official Liquidator is directed to return the EMD amount to all unsuccessful bidders.
A.RAJASHEKER REDDY, J
11.12.2014
t k.
1 issue framed by the court
Whether the application for confirmation of a lower sale offer should be allowed in light of a higher auction bid.
Applicants
Official Liquidator
A.RAJASHEKER REDDY
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
