CHETAN D. KOTIAN S/O DEVAPPA BABU KOTIAN AND A.V. SURABHI MANAGEMENT ACADEMY PVT. LTD. REPRESENTED BY ITS DIRECTOR SRI K.B. SRINATH Vs. S. MANIKYA PLASTICHEM PVT. LTD. FORMERLY KNOWN AS S. LON MANEKYA, A COMPANY INCORPORATED UNDER THE PROVISIONS

JUDGEMENT

(1.) THIS application is filed under Rule 9 of the Companies (Court) Rules 1959 by the Ex -Promoter Director of the first Respondent M/s. Manikya Plastichem Private Limited which is under liquidation, seeking for reopening the auction conducted by this Court on 4 -3 -2011 and to permit the second applicant to submit his offer for Rs. 4.10 Crores before confirmation of sale of the assets of the first Respondent -Company in liquidation.

(2.) IN the application he has contended that he was Promoter Director of the first Respondent -company. He tendered his resignation to the post of Directorship on 9 -5 2006 and he has transferred all his shares to the existing shareholders during November 2006. Immediately after his resignation, he informed the same to the State Bank of India. Commercial Branch, Saraswathipuram. Mysore requesting them to discharge him from the guarantee. The said issue is pending in O.S. No. 790/2008.

(3.) THE few facts of the case are as follows: One Mohan Singh, Proprietor of M/s. Mohan Engineering filed a winding up petition against the first Respondent -company for non -payment of the dues of Rs. 2,47,671/ - under Section 431(a) of the Companies Act. On 27 -8 -2008, the first Respondent -company submitted before the Court that it has closed its business and settled its dues with its employees and they are unable to pay the debts due to the Petitioner in the winding up petition. This Court admitted the petition and ordered for advertisement of the petition in The Hindu' daily newspaper. Thereafter, winding up order has been passed 18th December 2008. The Official Liquidator attached to this Court was allowed to take charge of the company. Thereafter, efforts have been made to sell the Company thrice. At last, this Court on 4 -3 -2011 auctioned the property in the Court. Paragraphs 15 and 16 of the order dated 4 -3 -2011 reads as under: 15. Having heard the learned Counsel for the parties and on perusal of the earlier orders passed by this Court, it is noticed that there were three attempts as on date made by this Court to secure the best possible price for the assets of the company in liquidation. The details of the said attempts made are as <FRM>JUDGEMENT_950_TLKAR0_2011.htm</FRM> A perusal of all valuation reports available on file would go to show that as on date of 1st valuation i.e.. 6.6.2009 the valuation fixed for all the assets of the Company in liquidation by the valuer was Rs. 5,14,11,155/ -. Thereafter, Official Liquidator as well as secured creditor both have obtained the valuation reports (Rs. 3.40 Crores & Rs. 3.99 Crores) respectively which are placed on record, which would clearly go to show that value of the assets of the Company in liquidation has been reduced from Rs. 5.14 Crores to 3.99 Crores. The valuation of the assets as per valuation report by Sri.S.V. Srinivas submitted on behalf of the secured creditor is at Rs. 3.99 Crores and valuation of the assets as per valuation report submitted by Sri.B.S. Sheshagiri submitted on behalf of the Official Liquidator is at Rs. 3.40 Crores. In the bids submitted by the bidders pursuant to the advertisement dated 2 -2 -2011 published by the official liquidator the highest bid that was received was at Rs. 3.32 Crores by Sri.K.N. Shivaswamy. The said report of the Official Liquidator in OLR 94/2011 is placed for approval by this Court and for permitting Court auction. In pursuance to the notices issued by the O.L to the six (6) bidders who had participated in the public auction conducted by the O.L on 212 -2011 three bidders have appeared before the Court and participated in the Court auction As per minutes recorded of even date (which is part and parcel of this order) in the said Court auction conducted as noted herein above Sri.K.N. Shivaswamy has given the highest bid for Rs. 3.90 Crores. 16. Thus taking into consideration that assets of the Company in (liquidation) has been valued as per its valuation made in June 2009 and September 2010, this Court is of the considered view that any further delay would result in further deterioration in the value of the assets in question as is evident from the records. The bid offered by Sri. K.N. Shivaswamy is in the proximity with the valuation of the assets of the Company made by the valuer Sri. S.V. Srinivas (valuation submitted on behalf of the secured creditor which is at Rs. 3.90 Crores). Secured Creditor has not furnished or secured any other offer from any prospective purchasers by a higher offer than one offered by Sri. K.N. Shivaswamy. There is no justifiable reason to either postpone the Court auction or reject the offer made by Sri. Shivaswamy. There are no other person/s present who intend to give higher bid than one received today in Court auction. In view of the same the bid offered by Sri. K.N. Shivaswamy. deserves to be accepted and also in view of the fact that other two bidders being present before the Court having confined their claims to the extent of offer made by them as stated herein above. Accordingly bid offered by Sri. K.N. Shivaswamy. for Rs. 3.90 Crores is accepted which would be sale consideration for the sale of land, building, plaint and machinery, office equipment, Furniture and Fittings, Finished Goods and Vehicles as reflected in the notice inviting bid which is at Annexure B 1 to OLR 94/2011.