JAMI SIVASAI Vs. OFFICIAL LIQUIDATOR, ORISSA HIGH COURT

JUDGEMENT

(1.) THIS Company Appeal has been filed against thy Judgment and order of the Learned Company Judge dated 28.8.2008 passed in COPET No. 16 of 2002 by which the sale and delivery of possession of properties of M/s. Utkal Oils Limited (company on liquidation) have been directed in favour of the Respondent No. 2 - Ws. IVIittal Infra Projects Pvt. Ltd. and prayer for extension of time to deposit of amount offered by the present Appellant and Smt. J. Nirmala -Respondent No. 3 was refused.

(2.) THE facts and circumstances giving rise to the case are that M/s. Utkal Oils Limited a company failed to repay the debts of its creditors and therefore the liquidation process started. The winding up order was passed and thereafter the Learned Company Judge directed to put the properties of the said company into auction. Accordingly the Official Liquidator issued the sale notice in the daily news papers. The approved registered valuer assessed the valuation of the properties of the said company to the tune of Rs. 1.32 crores and thereafter, for the purpose of conducting the auction sale the up set price was fixed at Rs. 1.20 crores. In pursuance to the sale notice, parties were participated in the auction held on 28th March, 2008. After completing the formalities, the Learned Company Judge approved the sale in favour of the highest bidder - Respondent No. 2 who had offered the bid at Rs. 1,44,51,000 so far as Lot No. 1 is concerned. The Appellant, who had not participated in the auction came to know about the aforesaid bid at a belated stage and approached the Court by filing a Misc. Case bearing No. 41 of 2008 raising objection that the property had been sold in auction at a grossly low value and asked the Court to accept his bid for a sum of Rs. 1.65 crores. He also asked the Learned Company Judge to permit him to deposit the EMD of Rs. 33.00 lakhs within a week and the balance amount of consideration to the tune of Rs. 1.32 Crores within 60 days as per the terms of sale. The aforesaid Misc. Case and another Misc. Case No. 42 of 2008 filed by another party, Smt. J. Nirmala, were taken up together on 9th May, 2008 by the Learned Company Judge and in course of hearing, the Appellant raised its offer to 1.75 crores and became the highest bidder. Appellant was willing to deposit the EMD of Rs. 35 lakhs with the Respondent No. 1 within a week. The Learned Company Judge passed the order on 9.5.2008 as follows:

(3.) ON the other hand Shri S.C. Lal, Leamed Sr. Advocate appearing for Respondent No. 2 has vehemently opposed the appeal contending that the Appellant did not participate in the proceeding at the initial stage. He filed an application at much belated stage and when Respondent N0.2 itself had enhanced his bid to equalize the bid made by the Appellant, the case of the Appellant could not be Considered. More so, the Appellant did not make any depasit whatsoever within a period of one week as directed by the Court vide Order Dated 9th May, 2008. Therefore, the appeal is liable to be dismissed.