SRI BAHUBALI CEMENT LTD Vs. STATE

JUDGEMENT

(1.) I.A. No. 6132 of 2009: The interlocutory application has been filed by the Bihar Industrial Area Development Authority (in short 'BIADA') for re-tender of schedule-l property of the company in liquidation, namely, Bahubali Cements Limited with respect to which the highest offer of Rs. 50 lacs made on behalf of M/s Symbiosis Electronic Pvt. Ltd. was accepted by this Court on 21.8.2009. In the said application the BIADA has made an offer to purchase the aforesaid property at a price of Rs. 55 lacs and accordingly, it is prayed that the sale of schedule-l property of said Bahubali Cements Ltd. accepted on 21.8.2009 be cancelled and a fresh auction for getting the better value of the property in question be ordered.

(2.) THE short facts relevant for consideration of the present matter is that a sale notice was published on 4.5.2009 for the sale of leasehold land measuring 2.50 acres alongwith Godown and certain constructions on 'as is where is and whatever there is' basis with respect to schedule-l property of the company in liquidation. THE only tenderer found on 2.7.2009 when the sealed tender was opened, was the BIADA which had made an offer of Rs. 10 lacs. However, in view of the fact that the property had been valued at Rs. 93,54,997/-by the official valuer, the BIADA was given time and ultimately an offer of Rs. 30,00,000/- was made on behalf of the BIADA. On 17.7.2009 an interlocutory application was filed on behalf of M/s Best Towers (Pvt.) Ltd. expressing its intention to participate in the sale as it had recently learnt about the same and on 24.7.2009 it made an offer of Rs. 35 lacs upon which learned counsel for the BIADA stated that he had instruction to make an offer not more than Rs. 35 lacs, whereafter learned counsel for M/s Best Towers (Pvt.) Ltd. increased the offer to 36 lacs. Keeping the offer pending, a fresh notification for sale was directed to be published by the Official Liquidator. When the tender was opened on 21.8.2009 on the basis of fresh sale notice, two other tenderers made their offers.

(3.) LEARNED counsel further submits that even in the sale notice issued by the O.L. it was clearly mentioned that the High Court reserves the right to accept or reject any or all the offers at any stage of sale proceeding or confirmation of sale and/or withdraw any of the property subject to sale and negotiate with the purchasers for the public good as well as in the interest of secured creditors; it also provides that the High Court may retain EMD of two top bidders up to sixty days from the date of order accepting the offer/ prima facie confirmation of sale and further it will not carry any interest. It is urged by learned counsel that the order of this Court dated 21.8.2009 accepting the offer of Rs. 50 lacs of M/s Symbiosis Electronics Pvt. Ltd. was only a prima facie confirmation of sale and it was open to this Court in the interest of secured creditors and the Company to withdraw the same and accept a higher bid by another party.