PRASANTHI CASHEW PVT LTD Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) THIS company appeal is lodged against the order of the Company Court Judge in Report No.37 in C.P.No.53/2000. By the impugned order the learned Company Judge refused to confirm the sale conducted by the Official Liquidator in the winding up proceedings. Appellant is none other than the auction purchaser.

(2.) WE heard Sri.M.K.Damodharan, the learned senior counsel for the appellant and also the other counsel appearing. The learned Company Judge noted that the Court had passed an order on 18.3.2011 permitting the Official Liquidator to take steps for sale of certain immovable properties belonging to the company. The Official Liquidator published notice on 23.3.2011 and the sale was conducted on 31.3.2011. The appellant-auction purchaser bid the property at an amount of Rs.8,80,05,001. WE further note that the learned Judge has referred to the objections of the ex-managing director of the company that the sale is conducted in haste and he opposed the request for confirmation on the ground that if more time had been given a better offer would have come. Thereafter, the reasoning given is as follows:

(3.) WE must notice that though the report was filed by the Official Liquidator requesting confirmation of sale, the Official Liquidator has virtually accepted the decision of the Company Court as he has not chosen to impugn the order. No doubt, the auction purchaser has right to challenge the order.