OPG POWER GENERATION PRIVATE LIMITED Vs. IFCI LIMITED

JUDGEMENT

(1.) The petitioner has filed the present petition, inter alia, praying as under:

(2.) The respondent (hereafter "IFCI") had issued a public notice inviting offers in the sealed cover on "AS IS WHERE IS BASIS AND WHATEVER THERE IS BASIS" for purchase of the assets of Sponge Iron Division of Bellary Steels and Alloys Limited (hereafter "BSAL") located at Villages Bisalahalli and Haddinagundu, District Bellary in the State of Karnataka, which included land measuring 119.62 acres along with Building and Structures, Plant and Machinery and Miscellaneous Fixed Assets/Other Current Assets of Sponge Iron Division, Steel Melting Shop, Bar Rolling Mill, Merchant Rolling Mill, Oxygen Plant, Captive Power Plants of 2.5 MW and 12 MW. The assets were in three lots (Lot I, Lot II and Lot III). The reserve price for each lot was fixed separately. The reserve price for the composite lot unit (Lot I, Lot II and Lot III) was fixed at Rs.62,96,93,000/- (Rupees Sixty two crores ninety six lacs and ninety three thousand). The bidders were required to deposit an earnest money of Rs.6,29,69,000/- (Rupees Six crores twenty nine lacs and sixty nine thousand).

(3.) The petitioner submitted its bid to purchase the composite unit for a sum of Rs.64.90 crores and also deposited the earnest money (EMD) of Rs.629.69 lacs being 10% of the reserve price. The petitioner's bid was found to be the highest. The same was accepted by IFCI on 10.01.2011 and the petitioner was advised to deposit the balance amount within a period of fifteen days. The petitioner paid the sum of Rs.9,92,81,000/- on 11.01.2011 and the balance amount of Rs.48,67,50,000/- on 25.01.2011. On 29.01.2011 IFCI issued a possession certificate with regard to the sale of both, movable and immovable, assets pertaining to the Sponge Iron Division of BSAL. Thereafter, on 29.04.2011, IFCI executed two separate sale certificates, one for movable properties and the other for immovable properties sold to the petitioner.