I F C I LIMITED Vs. OFFICIAL LIQUIDATORS

JUDGEMENT

(1.) This is an application for variation/modification/ clarification of the order dated February 22, 2002 passed by a Division Bench of this Court by which the said Division Bench set aside the order dated 1st February, 2002 passed by the learned Company Judge confirming sale of a company in liquidation.

(2.) The said Division Bench on hearing the learned Counsel for the parties and after going through the materials on record came to the conclusion that the parties or the intending purchasers did not get opportunity to go through the valuation report nor was the valuation report placed before the learned Company Judge. According to the Division Bench, having regard to the valuation report submitted in the case which was not brought to the notice of the Court or the parties, it would appear that the sale at a sum of Rs. 85 lakh would be too inadequate and low. The Division Bench further was of the view that the sale of a big paper mill which was subject matter of confirmation could not be made without giving wide publicity all over India. The Division Bench further found that learned Company Judge did not fix a reserve price for sale of the company in liquidation and that fact also weighed with the Division Bench in interfering with the order passed by the learned Company Judge confirming the sale.

(3.) Ultimately, the Division Bench set aside the sale and directed the Official Liquidator to return the money with interest to the purchasers. The learned Company Judge was requested to take immediate steps for fresh advertisement by publishing the same at least in three newspapers having circulations all over India. The Division Bench further observed that it would be open to the learned Company Judge to direct that the Company in question can be sold only as a going concern.