OFFICIAL LIQUIDATOR Vs. NARENDRA DADA AGRO INDUSTRIES LTD

JUDGEMENT

(1.) ON 10-1-2003 the company - M/s Narendra Dadagro Industries Ltd. was ordered to be wound up by this Court and accordingly, the Official Liquidator took possession of the property from sicom. SICOM, Central Bank and MSFC are the secured creditors. On 13-6-2003, the Official Liquidator filed OLR 10/2003 seeking permission to advertise the company property for sale. Thereafter, advertisements came to be issued on 15th/17th/18th June, 2003 calling bids in four lots with Earnest Money as under:- <FRM>JUDGEMENT_467_MHLJ3_2006Html1.htm</FRM>

(2.) THE above advertisements also indicated that the Company can be sold as "going concern" and bids can be submitted even for such purchase. On 23-6-2003, tenders were opened in presence of bidders, secured creditors. Out of total 9 offers received, 3 were interested in purchasing the company as "going concern". In the inter se biddine held, following: offers were received :- <FRM>JUDGEMENT_467_MHLJ3_2006Html2.htm</FRM>

(3.) AS Mahendra Kumar and Company were lowest and unwilling to go further in inter se bidding, the Official Liquidator returned their earnest money. It is alleged that Sankh Impex had put certain conditions which were not accepted by the Official Liquidator and hence, it withdrew its offer to purchase as "going concern". According to Bhaskar Exxols Ltd. , the sale notice was dated 13-6-2003 and it had quoted Rs. 3,11,00,000/- as its composite offer and it deposited Rs. 6,50,000/- as earnest money. On 23-6-2003, it provisionally increased its offer to rs. 4,87,00,000/- as the Official Liquidator could not disclose details about liability status of the company in liquidation. It is alleged that, therefore, it and the other bidders did not sign the bid sheet and the proceedings dated 23-6-2003 remained inconclusive. The Official Liquidator held further meeting on 20-6-2003, but it was attended only by the Secured Creditors and none of the bidders were present. It appears that the Official Liquidator had received fresh offers and he decided to obtain appropriate orders from this Court to entertain the fresh offers and to hold meeting on 30-6-2003. It is stated that said permission war granted on 27-6-2003 and the meeting was held accordingly on 30-6-2003. No bidder was present and hence, there could not be any decision about selling the company as "going concern". On 30-6-2003, only Secured Creditors were present and it was decided to move High Court with proposal that - in case of bhaskar Exxols Ltd. , if sale is confirmed and they do not turn up to deposit balance amount, their Earnest money should be forfeited, while in case of - M/s sankh Impex Ltd. , the offer being second highest offer, said bid should be accepted. Accordingly, on 3-7-2003, OLR 46/2003 came to be filed. seeking various reliefs, as mentioned therein including relief in the alternative to re-advertise.