KMTC ASSOCIATES Vs. COMET COMMODITY EXPORTS LTD.

JUDGEMENT

(1.) In CA No. 57/14 the applicant is the auction purchaser of Lot No. 1, the landed property extending 3 Acres in Re - survey No. 325, Block No. 32, Industrial Development Area, Erumathala, Aluva, Ernakulam, with old buildings standing thereon and the compound walls, in the auction held by the Official Liquidator in the above Company Petition. The applicant was the highest bidder and his bid amount is Rs.4,05,00,000/- (Rupees Four crores and five lakhs only). There were four participants, including the applicant. The second highest bid was for Rs.3,13,00,000/- (Rupees three crores and thirteen lakhs only). The applicant deposited Rs.50,00,000/- (Rupees fifty lakhs only) by Demand Draft for the said amount in favour of the Official Liquidator drawn on the Federal Bank, Perumbavoor, vide Annexures - A1 and A2. The said amount is lying with the Office of the Official Liquidator from 30/01/2014 onwards.

(2.) However, though the amount offered by the applicant was highest and there was no illegality or irregularity in the proceedings, the applicant's tender has not been accepted or confirmed so far, at the instance of certain persons who have not even participated in the tender. The applicant has been suffering heavy loss every day, due to the delay, in confirming his highest bid, which is far more than a reasonable amount, by any stretch of imagination. The confirmation is being delayed at the intervention of third parties with the deliberate intention of preventing the applicant from getting the aforesaid property. Hence it is prayed that the applicant's bid be accepted and confirmed in his favour, in the interest of justice.

(3.) In Report No. 49 filed by the Official Liquidator, the Official Liquidator admitted that the applicant in CA No. 57/14 is the highest bidder of Lot No. 1 and the highest value offered by him is Rs.4,05,00,000/- (Rupees four crores and five lakhs only). But the Official Liquidator further submitted that the amount offered for the purchase of Lot No. 1 is very low comparing with the total value of the property i.e., Rs.7,84,00,000/- (Rupees seven crores and eighty four lakhs only) assessed by the Chartered Engineer / Approved Valuer. In respect of Lot Nos. ll and III, the amount quoted by the highest tenderer is higher than the amount valued by the valuer. But, regarding Lot No. l, the value offered is much lesser than the amount valued for the assets and hence the Official Liquidator is of the opinion that the bid for Lot No. l be cancelled and the same is to be put for re - sale. The Official Liquidator, inter alia, prayed for the permission to cancel the sale regarding Lot No. l which was held on 30/01/2014 and to put it for re - sale.