STAR TRADING COMPANY Vs. COSMOS TECHNOLOGIES

JUDGEMENT

(1.) This is an appeal filed against the order dated 3.9.2014 of the learned Single Judge whereby the application no. 269403 of 2014 filed by respondent-M/s Cosmos Technologies praying for recalling the order dated 30.7.2014 (whereby the bid of the appellant had been accepted) and the further prayer for permitting M/s Cosmos Technologies to bid for sale of plant and machinery of the company, has been allowed.

(2.) The brief facts of this case are that the properties of the company in liquidation- M/s Alfa Springs Limited, Kanpur were to be sold by the official liquidator for which an advertisement for sale was made by him. The properties were placed in three Lots, namely, 'Lot-A', 'Lot-B' and 'Lot-C'. The dispute in the present appeal is with regard to plant and machinery (movable properties) placed in Lot-B, the reserve price of which was fixed at Rs. 70 lacs. Notices inviting tenders were published in the daily newspapers on 27th and 28th May, 2014. Inspection was allowed on 16th and 17th June, 2014. After inspection ten tenders were submitted, in which the tender of appellant-M/s Star Trading Company was the highest at Rs. 81 lacs. Thereafter, open bidding was held by the Company Judge between the tenderers, in which the aforesaid M/s Star Trading Company had raised its bid to Rs. 97 lacs, which was the highest for Lot-B i.e. plant and machinery. The official liquidator was directed to obtain comments of all the secured creditors with regard to the said highest bid of Lot-B. The three secured creditors, namely, PICUP, UPFC and Canara Bank did not object to the said offer price of the appellant.

(3.) Then by order dated 30.7.2014, the learned Single Judge, after noting that two secured creditors had given their no objection and one did not submit its reply, accepted the price of Rs. 97 lacs offered by M/s Star Trading Company with respect to Lot-B, which was subject to compliance of terms and conditions of the tender as mentioned on the back of the tender notice. Then on 14.8.2014, the respondent-M/s Cosmos Technologies filed an application for recalling the order dated 30.7.2014 and for permitting it to bid for sale of plant and machinery of the company in liquidation. They offered a price of Rs. 1,10,00,000/- for the plant and machinery (Lot-B), and to prove their bonafide they deposited an amount of Rs. 25 lacs by a demand draft dated 14.8.2014 drawn in favour of the official liquidator. They had also offered to pay balance amount of Rs. 85 lacs within three days from the acceptance of their offer.