NUZIVEEDU SEEDS LIMITED Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) SINCE the above two Appeals and connected Miscellaneous Petitions arose from order dated 24-11-2004 in Company Application No. 1448 of 2000 in Company Petition No. 2 of 1989 of the learned Company Judge, the same are being disposed of by the following common Judgement.

(2.) THE matter relates to disposal of movable and immovable properties of M/s. Standard Motor Products of India Limited. By Order dated 4-10-1996 in Company Petition No. 2 of 1989, Messrs. Standard Motor Products of India Limited was ordered to be wound up and the Official Liquidator attached to this Court has become the Liquidator of the said company, with a direction to take charge of all the assets and effects of the company. Pursuant to the above direction, the official liquidator filed necessary applications including permission to call global tenders for sale of the land, building, plant and machinery and other movables of the Standard Motor Products of India Limited which is in liquidation by fixing the upset price for the entirety of the property at Rs. 63 Crores after taking into consideration of the valuation made by the approved valuer. Notification was made calling for tenders and pursuant to the same, tenders were received. The official liquidator placed all the tenders before the Company Court. By order dated 23-11-2004, the Company Court directed the Registrar (Management) to conduct auction. The Registrar (Management) submitted his report dated 23-11-2004 wherein he has stated that 10 persons have given written offers and participated in the auction. The Registrar has also stated that one Thiru T. S. R. Khannaiyann and M/s. Nuziveedu Seeds Limited who actively participated finally had bid for Rs. 134 crores and Rs. 135 crores respectively. Both of them were directed to be present before the Company Court and their respective counsel were directed to increase their bid amount. The impugned order further shows that the counsel for M/s. Nuziveedu Seeds Limited has expressed his inability to contact his client. However, the counsel appearing for Thiru T. S. R. Khannaiyann raised the bid amount to Rs. 140 crores. The learned single Judge finding that the said amount is exactly double the amount offered in the tender form submitted by the highest bidder and as well as upset price fixed as per the valuation report, the bid made by Thiru T. S. R. Khannaiyann as the highest bid and confirmed in favour of Thiru T. S. R. Khannaiyann, Chairman, Hindustan Group of Companies, 67, Avarampalayam Road, K. R. Puram, Coimbatore-6. In the same order, the learned Judge after recording that the highest bidder Thiru T. S. R. Khannaiyann has submitted Earnest Money Deposit of Rs. 6,30,00,000/-, directed him to pay the balance amount of Rs. 133. 70 crores in the following manner. 10 per cent of the balance amount of Rs. 133. 70 crores i. e. , a sum of Rs. 13. 37 crores has to be paid on or before 8th December, 2004 and the balance amount of Rs. 120. 33 crores has to be paid in two equal instalments, the first of the instalment Rs. 60,16,50,000/- has to be paid on or before 7th January, 2005 and the last of the amount Rs. 60,16,50,000/- has to be paid on or before 10th February, 2005. In the same order, the Company Court directed the Official Liquidator to return all the Demand Drafts submitted towards E. M. D amount in respect of the other tenderers.

(3.) QUESTIONING the above order, M/s Nuziveedu Seeds Limited, Hyderabad-third party applicant, filed Original Side Appeal No. 284/2004. While admitting the appeal on 23-12-2004, a Division Bench of this Court in C. M. P. No. 20147/2004, granted interim stay of all further proceedings and ordered notice to respondents.