NEW TOBACCO CO. LTD. Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) THE order dated February 23, 1994, made by S. C. Sen J. (as His Lordship then was), inter alia provided as follows:

(2.) THE said order also provided as follows: Prudential Equity Fund Limited and R. D. Builders and Developers Limited are to be handed over all the properties of New Tobacco Co. Ltd. both in West Bengal and at Biccavellu at Andhra Pradesh on the terms and conditions contained in the proposal for lease handed up in Court today. An undertaking has been given on behalf of the lessees to pay the balance amount of Rs. 75,00,000 to 'he Special Officer on account of lease rent by 30 i April, 1994. A Revolving Bank Guarantee must be furnished by 31st May, 1994. It is made quite clear that if the Revolving Bank Guarantee is not furnished by 31st May, 1994, and the balance amount of Rs. 75,00,000 is not paid in time, this order will stand recalled and the Special Officer will immediately take possession of the assets of the company and the lessees undertake to hand over possession of all the assets and properties of the company immediately back to the Special Officer.

(3.) IT is quite clear from the said order that the intention of the Court was that after the valuation report was received, steps would be taken to sell the assets of the company to the highest bidder by auction. It was also provided in the agreement for lease itself.