SUB REGISTRAR, AMUDALAVALASA Vs. DANKUNI STEELS LTD

JUDGEMENT

(1.) Delay condoned. Leave granted.

(2.) By order dtd. 13/6/2002, the High Court of Andhra Pradesh ordered M/s. Midwest Iron and Steel company Ltd. (which is Respondent No.3 in the appeals) to be wound up. Though pursuant to order dated 22 .09.2003, efforts were made to sell the property of respondent no.3 in three lots, finally, based on an auction for a consolidated sale, the second respondent herein, namely, M/s. SMC Marketing Private Ltd. who figured as the highest bidder, became the successful auction purchaser. It bid for the property which consisted of land, building, civil works, plant and machinery and current assets, etc. The amount for which the second respondent was declared the highest bidder was Rs.8.35 crores. On the basis of a direction given in C.A. No. 1203 of 2004 at the instance of the second respondent, the Official Liquidator was accorded permission by the learned Company Judge to execute the sale deed in favour of the first respondent in the appeals, viz, M/s. Dankuni Steel Ltd. A sale deed came to be executed by the Official Liquidator in favour of the first respondent dtd. 5/8/2004. In the sale deed in the preambular portion we may notice the following statements:

(3.) Clause H of the preamble, reads as follows:-