MAMTA STEELS LIMITED Vs. REGIONAL MANAGER

JUDGEMENT

(1.) THE applicant, Mamta Steels Ltd. (in liquidation) has taken out this Judge's Summons praying for setting aside the transaction executed by Gujarat Industrial Development Corporation (G. I. D. C.) in favour of Gujarat State Petroleum Corporation (G. S. P. C.) for an amount of Rs. 16,48,000. 00 and seeking permission for Voluntary Liquidator to accept the offer of Rs. 42,31,000. 00 of the highest bidder by executing the sale deed in favour of the said highest bidder and seeking further permission to disburse the amount as per the provisions of Section 529a and 530 of the Companies Act, 1956. The applicant has also prayed for stay restraining the respondents from dealing with the property in question of the applicant Company till it obtains permission of the Company Court as required under Section 446 of the Companies Act, 1956 and to maintain status quo during the pendency of the proceedings.

(2.) THIS Court has issued notice on 24. 10. 2007. On service of notice, appearance is filed by Mr. Aspi Kapadia, learned advocate on behalf of respondent No. 3 and Mr. M. B. Gandhi, learned advocate on behalf of respondents No. 1 and 2. On 29. 10. 2007, Mr. Kapadia made a statement before the Court that no demolition shall be made of the property in question until 28. 11. 2007. The statement was continued upto 14. 12. 2007 and further order is passed by this Court on 14. 12. 2007 to the effect that the statement made earlier will no longer bind him and the respondent No. 3 will be at liberty to deal with the property in question in any manner as it thinks.

(3.) ON behalf of the applicant an affidavit in support of Judge's Summons is filed by Shri S. K. Ravi, the Voluntary Liquidator of the applicant Company. Mr. R. D. Dave, learned advocate appearing for the applicant has submitted that the shareholders of the applicant Company passed a Special Resolution under the provisions of Section 484 (1) (b) of the Companies Act, 1956 and Mr. S. K. Ravi was appointed as Voluntary Liquidator and it was duly published by the applicant Company in the Government Gazette dated 16. 3. 2002. He has further submitted that after appointment of the Liquidator, the Liquidator wrote a letter to G. I. D. C. to appoint its nominee to the Sale Committee to dispose of the property of the Company. However, there was no response whatsoever from the G. I. D. C. He has further submitted that the G. I. D. C. took the possession of the applicant's unit by applying lock on the main gate of the unit without considering the aspects that there is statutory liability against the Company regarding excise, sales tax, etc. , of about Rs. 28,50,000/- and of about Rs. 13,50,000/- towards creditors. He has further submitted that the applicant Company was handed over possession of the unit on 9. 9. 2004 by the G. I. D. C. Since the G. I. D. C. was inclined to sell the property in question the applicant got the report of the Government Approved Valuer and the value of the property came to Rs. 22,33,000. 00. He has further submitted that the applicant challenged the order dated 17. 8. 2007 passed by the G. I. D. C. whereby the request of the applicant to change the date of allotment of the plot from 17. 11. 1992 to 8. 1. 1996 and to grant consequential benefits, was rejected. The applicant has also challenged the order dated 7. 6. 2007 passed by the Regional Manager of G. I. D. C. asking the applicant to pay Rs. 4,06,252/ -.