Dismissed

Vankayala Eswara Krishna v. M/ s. Sri Vijetha Horticulture (I)Ltd (in Liqn)

Telangana HC11 Dec 2014COMPA/1153/2014

Case brief

AI extract

What is this about?

In a company application regarding the sale of a respondent company's landed properties in liquidation, the court rejected the applicant's offer because it was lower than the highest bid received at a subsequent public auction, dismissing the application but directing refund of deposits.

What did the court decide?

Return of EMD amounts to all unsuccessful bidders. Offer rejected due to lower value compared to auction.

Vankayala Eswara Krishna Vs M/ s. Sri Vijetha… — Company and Corporate | Telangana HC (2014)

¶1

HONOURABLE SRI JUSTICE A.RAJASHEKER REDDY

¶2

Company Application No.1153 of 2014

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O R D E R :

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This application is filed to consider the applicant’s offer to purchase the landed properties of the Company in liquidation i.e., Ac.75.31 cents in Sankaram village and Ac.20.07 cents in Lova Krishnapuram Village of Madugula Mandal, Visakhapatnam District, along with the other offerers.

¶5

It is stated in the affidavit filed in support of this application that the applicant herein has visited the above said lands put for sale under Lot Nos.1 & 2 and also contacted the Ex-Managing Director of M/s.Sri Vijetha Horticulture (India) Limited (in Liquidation). He also submits that he came to know through the order dated 04.12.2006 passed in Company Petition No.96 of 2006 that this Honourable Court directed winding up of the said company and appointed Official Liquidator attached to this High Court as regular liquidator to liquidate the Assets and to apply the sale proceed to creditors in terms of provision of Companies Act. He further submits that he came to know that the Official Liquidator of the respondent company is yet to sell the said landed properties of the company in liquidation. He further states that he also came to know that some of the persons/parties have shown interest to purchase landed property Ac.75.31 cents situated in Sankaram Village, Madugula Mandal, Visakhapatnam District of the Company in liquidation, by offering the amount and awaited for consideration and for conformation of offers and it appears that the said offers are pending for confirmation.

¶6

He submits that as he is also interested to purchase both the properties put for sale under Lot Nos.1 & 2 of the company in liquidation i.e., Ac.75.31 cents in Sankaram Village and Ac.20.07 cents in Lova Krishnapuram of Madugula Mandal, Visakhapatnam, and offered a sum of Rs.1,80,50,000/- and Rs.75,20,000/- respectively, and in the event this Court consider the offer proposed by him, he will abide by the sale terms and conditions for payment of the said sale consideration, and in case of any negotiations, he may be

¶7

permitted to participate the same.

¶8

When the present company application came up for hearing on 22.09.2014, before this Court, in view of the submissions made by the Official Liquidator that CA.No.1143 of 2014 was filed by another interested party for similar relief and that this Court has permitted it to approach the Official Liquidator for negotiation of price, this Court permitted the applicant herein as well as ATR Estates, who made a similar request though an application has not been filed, to approach the Official Liquidator by offering their respective prices in sealed covers, and on their approaching him, the Official Liquidator shall permit them to participate in the negotiations. This Court posted the matter to 23.09.2014 for report of the Official Liquidator.

¶9

The Official Liquidator filed his report on 23.09.2014 stating that there is stiff competition among the bidders for purchase of the subject 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 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.

¶10

In view of the above and in view of the fact that the offer made by the applicant 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 amounts to all unsuccessful bidders.

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A.RAJASHEKER REDDY, J

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11.12.2014

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t k.

Vankayala Eswara Krishna v. M/ s. Sri Vijetha Horticulture (I)Ltd (in Liqn)

Case brief

What is this about?

What did the court decide?

Vankayala Eswara Krishna v. M/ s. Sri Vijetha Horticulture (I)Ltd (in Liqn)

Case brief

What is this about?

What did the court decide?

What the court decided

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