OFFICIAL LIQUIDATOR Vs. SUSHIL VIJOY ARORA

JUDGEMENT

(1.) These review petitions are filed by the parties to Co.Appeal No.62023. By the judgment sought to be reviewed, this Court had held that the Official Liquidator was liable to pay interest for the period from 27/12/2021 to 8/3/2022 to the purchaser of the property. It is the contention of the Official Liquidator in this review petition that the delay in executing the sale deed was not contumacious so as to justify grant of interest for the amount deposited by the 1st respondent as consideration for the purchase of the property brought to sale in the company case.

(2.) This Court had considered the fact that the property was brought to sale on 23/8/2017 and that the sale was confirmed on 18/11/2017. The entire sale consideration had been paid only on 10/7/2019 and the possession of the property was handed over on 27/11/2019. Thereafter, it was only on 27/12/2021 that land tax was paid in respect of the property and the sale deed was executed on 8/3/2022. The learned single Judge found that the Official Liquidator had taken all efforts for expeditious handing over of the property and for speedy execution of sale deeds and that there was no requirement of payment of interest. However, in view of the fact that the entire preparations for conduct of the sale including payment of land tax was completed on 27/12/2021, this Court held that the further delay from 27/12/2021 to 8/3/2022 for execution of the sale deed stands unexplained and therefore, interest is to be paid by the Official Liquidator to the purchaser for the said delay at the rate of 6% per annum.

(3.) The review petition filed by the Official Liquidator states that there was considerable appreciation of the value of the property and that there were frequent communication during the period from 27/12/2021 to 8/3/2022 and that it was only after orders were passed by the Company Court that the sale deed could have been executed. It is submitted that between the said dates, the draft of the sale deed had been submitted which was revised and approved only on 4/2/2022 and communicated to the purchaser. Thereafter, it was only on the basis of the orders passed on 9/2/2022 in C.A. No.512021 and C.A. No.802021 that the execution of the sale deed was fixed and the sale deed was executed on 8/3/2022. It is submitted that it was pursuant to the order passed in C.A. No.192022 on 2/3/2022 that the Company Court had directed execution of the sale deed on 8/3/2022 based on the revised land and building value as per Annexures I, II and III in C.A. No.192022. It is, therefore, contended that the awarding of interest on account of the delay for 70 days was not proper.