S.B. OVERSEAS LTD. Vs. KONARK JUTE LTD.

JUDGEMENT

(1.) THIS appeal is preferred against an order dated February 2, 2007, passed by the company judge in Company Act Case No. 36 of 2001, directing to hold fresh auction in open court and consider the respective offers of the parties.

(2.) THE case of the appellant is that in the winding up proceeding, learned company judge directed Industrial Development Corporation of Orissa (for short "the IDCOL"), the holding company of M/s. Konark Jute Ltd. (for short "the KJL"), to publish advertisement by fixing appropriate upset price. It was further directed that the said offer so received in sealed cover should be placed before the Asset Disposal Committee (for short "the ADC") of IDCOL who shall open and consider the same and submit a report to the company judge with regard to acceptability of any of the offer so made. The final decision with regard to acceptance of such offer shall be taken up by the court. In compliance of the said direction of the company judge, offers were invited with upset price of Rs. 5,60,28,000 and in response to said advertisement, the following bidders participated:

(3.) LEARNED Counsel appearing for the appellant submits that the company judge should not have directed for holding of a fresh auction before considering the prayer and the contention made by appellant -SBOL in their affidavit dated August 4, 2006. Learned Counsel emphatically submitted that since SBOL never backed out the same process as per its offered terms and conditions, the impugned order dated February 2, 2007, was unwarranted and hence is liable to be set aside. In support of his contention, he relied upon a decision of this court in the case of Varsha Fabrics P. Ltd. v. State of Orissa, [2006] 102 CLT 137. According to him, in view of the affidavit dated December 15, 2006, filed before the company judge on December 16, 2006, containing minutes of meeting of the inter -departmental core group held on October 5, 2005 and order dated January 13, 2006, of the company judge, negotiations continued and reached almost at a complete stage and the same should not have been made inoperative at the instance of unsuccessful bidders and strangers.