OL OF JALAN ISPAT CASTING LTD Vs. GSFC

JUDGEMENT

(1.) BY way of present Report submitted by the Official Liquidator of the Company i.e. Jalan Ispat Casting Ltd. (in liquidation), it has been prayed that sale of the properties of the said Company in liquidation sold by the Sale Committee in compliance of the order dated 26th April 2005 passed by this Court in Official Liquidator's Report No. 4 of 2005, may be confirmed. The Official Liquidator was appointed as the Chairman of the Sale Committee and the GSFC, Canara Bank, Bank of Baroda, IFCI, etc. were the Members of the Sale Committee. The properties mentioned in paragraph No. 3 of the Report were advertised to be the properties of the Company for sale and the said advertisement was published in the newspapers on 16th May 2005. The details of the advertisement are mentioned in paragraph No. 3 of the Report. Today, the successful bidders and the parties, which were permitted to participate in the auction by paying Late Entry Fees, are present in the Court and thus, the following parties have participated in the auction proceedings in the open Court:

(2.) THE properties of the said company were placed under auction in the open Court lot -wise as advertised in the newspaper. However, ultimately all the properties shown as properties of Lot 'B' i.e. composite offer of Lots A, B and C, were placed before the bidders and in reference to the highest offer received qua the properties mentioned in Lots A, B and C, the composite offer placed by Valley Metals Pvt. Ltd., represented by learned Counsel Shri Pavan Godiawala, for Rs. 9 crores was found to be the highest and acceptable. The upset price of the all properties of Lot 'B' was fixed on the strength of the valuation report at Rs. 2.90 crores and for that the amount of Earnest Money Deposit (EMD) was fixed at Rs. 34 lakhs. The successful bidder is a party who has intervened into auction late by depositing the amount of EMD with 15% per annum towards Late Entry Fee. The sale of properties i.e. composite Lots A, B and C need confirmation.

(3.) ON 16th May 2005, an advertisement was published for sale of assets mentioned in it. The minutes of the meeting of the Sale Committee held on 30th June 2005 in the office of the Official Liquidator, High Court, Ahmedabad, were placed before the Court and on 31st August 2008 this Court passed orders in Official Liquidator's Report No. 76 of 2005. The proceedings for confirmation of offer for the properties mentioned in Lots B, C and D -2 were placed under abeyance and it was observed that the revaluation be made as there are errors in the report prepared by the valuer and a fresh advertisement be issued for sale. The Court also noticed that some theft had taken place in the properties of the Company and so a re -advertisement for sale of the Company (in liquidation) was also required to be issued.