PRADESHIYA INDUSTRIAL INVESTMENT CORPORATION OF U.P.LTD."PICUP BHAWAN", GOMTI NAGAR, LUCKNOW Vs. OFFICIAL LIQUIDATOR.UTTAR PRADESH & UTTARAKHAND & OTHERS

JUDGEMENT

(1.) SINCE both these company appeals have been filed challenging a common order dated 3.10.2008 passed by a learned Sin­gle Judge of this Court in Company Peti­tion No. 1-A of 2001, they are being de­cided together. Company Appeal No. 1 of 2008 has been filed by the "Pradeshiya Industrial Investment Corporation of U.P. Ltd." under Section 483 of the Compa­nies Act, 1956 against order dated 3.10.2008 passed by the learned Com­pany Judge of this High Court. Respond­ent no. 1 before this Court is the Official Liquidator and respondent no. 2 M/s Shubham Enterprises is the auction pur­chaser.

(2.) BRIEF facts of the case are that on a reference being made by M/s Vishwa Ingot Pvt. Ltd. under Section 15(1) of the Sick Industrial Companies (Special Provi­sions) Act, 1985, the BIFR after making enquiries under Section 16 (1) of the Aci recommended that the company i.e. M/s Vishwa Ingot Pvt. Ltd. should be wound up. This Court vide an order dated 3.9.2001 has directed the official liquida­tor i.e. present respondent no. 1 to take necessary steps in accordance with law. The official liquidator, through its counsel, subsequently moved an application before learned Single Judge of this Court for permission to sell the assets and prop­erties of the company by way of public auction. This was permitted by this Court by order dated 29.6.2004 and thereafter after according wide publicity for the auc­tion sale, the auction sale took place on 5.4.2005. In the auction sale, apart from the participants the secured creditor of the company i.e. the present creditor were also present. Admittedly, the highest bid was ' 52,50,000/- of respondent no. 2 i.e. M/s Shubham Enterprises. Being the highest bidder, respondent no. 2 deposited an ear­nest money of ' 5.30,000/- and the re­maining bid amount i.e. ' 47,20.000, - was to be deposited within a stipulated time. This auction sale was confirmed by an order of this Court dated 20.9.2005. It is again an admitted fact that none of the prospective bidders have made any appli­cation before this Court for recall of or­der dated 20.9.2005. However, before the learned Company Judge several applica­tions were made by the prospective bid­ders that presently they have a higher price to offer, but still none moved an applica­tion praying that order dated 20.9.2005 confirming the sale be set aside. The auc­tion purchaser i.e. respondent no. 2, how­ever, moved an application before the learned Single Judge that the time given to him for depositing the remaining amount be extended. This was strongly objected by the secured creditors on the plea that during this period the price of the property has soared high and there are people who are ready and willing to offer a much higher price ranging upto 1,00,00,000/- for the property and re­spondent no. 2 should not be given any time to deposit the remaining amount. The learned Single Judge, however, in order to meet the ends of justice and con­sidering the fact that respondent no. 2 was the highest bidder extended time for the deposit of the remaining amount with a condition that he will have to pay in­terest of 24% simple interest on ' 47,20,000/- which roughly comes to ' 86,48.,400/- on 3.10.2008. Vide its order dated 3.10.2008, learned Single Judge di­rected that this amount of ' 47,20,000/-along with simple interest of 24 % per annum be deposited within 30 days' time. It is this order of the learned Single Judge which has been challenged before this Court.

(3.) FOR the reasons-already stated above, we see no relevance or justification for even entertaining any applications moved before this Court by subse­quent bidders. Firstly for the reasons that the interest of secured creditor has been well taken care of by the order of the learned Single Judge, inasmuch as the amount has to be now given with an interest of 24 % and secondly, since there was no challenge to the order of this Court dated 20.9.2005 by any of the bidders.