ORISSA TEXTILE MILLS LTD Vs. STATE

JUDGEMENT

(1.) THIS order is regarding confirmation of sale of the factory complex of the Orissa Textile Mills Limited (for short, 'the Company') in liquidation.

(2.) AFTER perusing the report of the Official Liquidator on the valuation of the assets of the Company by an expert Valuer, the Court passed orders on 7.5.2004 sanctioning sale of the assets of the Company and directing that the Official Liquidator will take steps for advertisement. On 9.7.2004, the draft for sale notice was approved by the Court and on 16.7.2004 the Court ordered that the sale notice be advertised in 'The Indian Express.' 'The Financial Express', 'The Economic Times', 'The Times of India', Bhubaneswar and 'The Samaja', Cuttack. Thereafter, the sale notice was published in the said newspapers inviting tenders for (i) sale of all the assets of the Company as one unit, (ii) sale of the factory complex of the Company, and (iii) sale of the residential complex of the Company.

(3.) ON 10.12.2004, the Official Liquidator submitted a report to the Court stating therein that the sale notice was published in 'The Samaja', 'The Economic Times.' 'The Indian Express', 'The Financial Express' and 'The Times of India' and pursuant to the said sale notice six parties submitted their offers who did not intend to run the factory and four parties submitted their offers who intended to run the factory. He also stated in the said report that he negotiated with the parties who did not intend to run the factory on 29.11.2004 and at the end of the 16th round of negotiation, the offer of S.R. Industries for the factory complex at Rs. 15.40 crores was the highest. He also stated in the said report that on 7.12.2004 he negotiated with the parties who intended to run the factory and that only Shri R.C. Agrawalla and the representative of M/s. Nalini Constructions Pvt. Ltd. appeared for the said negotiation on 7.12.2004 but the negotiation ended with no result. In the, said report, the Official Liquidator also indicated that M/s. Rahul Ship Breaking Company (Kolkata) submitted an offer of Rs. 16.11 crores and deposited earnest money deposit of Rs. 2.00 crores after the bids were finalized and Shri Mahavir Ferro Alloys Pvt. Ltd. furnished earnest money less than 10% of the revised bid of Rs. 16.11 crores though the sale notice required that earnest money deposit of 10% of the bid will be made by an intending purchaser.