CONSOLIDATED STEEL AND ALLOYS Vs. STATE

JUDGEMENT

(1.) BY this order I propose to deal with the following applications:

(2.) THE company in liquidation M/s Consolidated Steels Alloys Ltd. filed a reference under Section 15 (1) of SICA before BIFR being BIFR Case No. 62/89. The bifr conducted an enquiry under Section 16 of SICA and concluded that despite exploring all possible avenues the said company had not been able to work out any acceptable revival scheme which could enable it to turn its networth positive within reasonable frame of time while meeting all its financial obligation. BIFR formed the final opinion dated 13. 1. 1998 that it would be just and equitable in the public interest if the company in liquidation is wound up under Section 20 of SICA. The appeal filed against the said final order dated 13. 1. 1998 of BIFR was dismissed by AAIFR on 28. 5. 1999. The aforesaid opinion of BIFR was forwarded to this Court for necessary action according to law. The same was registered as C. P. No. 25/1998. However, it appears that no proceedings took place in the said file. In the meantime, a winding up petition was filed in this Court by M/s Rameshwar Dass Devi Dayal against the company in liquidation being CP No. 428/2002. Vide order dated 13. 9. 2004 this Court admitted that winding up petition and ordered the provisional winding up of the company in liquidation. By order dated 4. 4. 2005 the Court passed the final winding up order in respect of the company in liquidation and appointed the Official Liquidator attached to this Court as the liquidator of the company. While the matter was pending consideration in this court on the basis of the final opinion of BIFR in C. P. No. 25/1998, but before the passing of the order dated 13. 9. 2004, the Tehsildar and recovery officer morena issued a proclamation for sale in respect of the property of the company under Section 147-C of the M. P. Land Revenue (Code), 1959. The same was published in the daily newspaper Dainik Bhaskar dated 26. 6. 2001. By this proclamation the fixed assets of the company, which had been attached, were sought to be sold for recovery of Rs. 1,82,30,677/- on account of electricity dues owed to M. P. State Electricity Board, as arrear of land revenue. When MPFC learnt of the aforesaid proclamation it objected to the proposed auction before the Tehsildar, Recovery Officer Morena by filing objections dated 25. 7. 2001.

(3.) IT appears that the Collector and Tehsildar, District Morena fixed the auction on 24. 7. 2001 in terms of its aforesaid proclamation. However, the same was postponed till 26. 7. 2001. The objections preferred by MPFC were rejected. The machinery/plant etc. of the company in liquidation was purportedly shown to the bidders. The Tehsildar, Morena in his proceedings of 26. 7. 2001 records that the "movable property" of the company in liquidation was offered for inspection by 17 persons attending the auction. The auction of the "movable properties" was started from the amount of Rs. 35 lakhs and the highest bid of rs. 52 lakhs was offered by Shri J. P. Gutpa of M/s Gupta Refractories, Gwalior. It was further recorded that the estimated value of the property sold in auction had been assessed by Shri A. K. Pathak at Rs. 47,8,800/ -. M/s Gupta Refractories deposited 25% of its bid amount of Rs. 52 lakhs. Shri J. P. Gupa of M/s Gupta refractories was declared the "purchaser" of the movable properties. The proceedings of the Tehsildar Morena of 26. 7. 2001 recorded in Hindi, along with its English translation, have been filed on record. At various places the said proceedings recorded that "chal sampati" has been sold to M/s Gupta refractories.