PATNA HIGH COURT KAILASH BIHARI THAKUR Vs. BIHAR STATE FOOD & CIVIL SUPPLIES CORPORATION HONBLE JUDGES:CHANDRAMAULI KUMAR PRASAD AND J.N.SINGH JJ.

JUDGEMENT

(1.) SHREE Vishwanath Chemical Priviate Limited is a Company under liquidation. Bihar State Credit & Investment Corporation Limited (hereinafter referred to as the "BICICO") is one of its secured creditors. Naresh Kumar Poddar is a share -holder and Ex -Director (hereinafter referred to as the "Ex -Management") of the Company, as also guarantor for repayment of the loan to the BICICO. The movable and immovable assets Of the company under liquidation were valued by valuer of the BICICO. It valued at Rs. 12,00,000/ -, the value of the land measuring 1.5 acres of land situate at Industrial Area Bela, Muzaffarpur in the district of Muzaffarpur. It determined the value of civil construction at Rs. 16,42,663/ -.

(2.) The plant and machinery have been valued for Rs. 12,98,850/ -. Thus the total value of the movable and immovable assets of the company as assessed by the valuer is Rs. 41,59,530/ -. As per direction of the Company Judge, the assets of the company were advertised for sale in two newspapers - one in English and other in Hindi. In the tender notice, the assets of the company were classified as Schedule -I and Schedule -ll. Schedule -I consisted of plant and machinery alongwith main plant shed and other shed structure, whereas Schedule -ll consisted of land measuring 1.5 acres. The reserve price of Schedule -I and Schedule -I! was fixed at Rs. 21,14,000/ - and Rs, 20,46,000/ - respectively. The earnest money for each of the Schedules was fixed at Rs. 3,00,000/ - and for both, the earnest money was Rs. 5,00,000/ -. The intending buyer was given liberty to buy only Schedule -I property if it so chooses.

(3.) IN response to the aforesaid advertisement, two offers were received - one for Rs. 8,00,000/ - and odd and other by M/s Sharif Brothers for Rs. 12,00,786/ -. It had also made security deposit of Rs, 3,00,000/ -. One of the secured creditor, namely, BICICO as also the Ex -Management objected to the acceptance to the offer. The Company Judge rejected both offer and directed the BICICO and the Ex -Management to procure better buyers. In the light of the aforesaid order, the assets of the company were again advertised for sale and notice was published in Economic Times, Kolkata in its issue dated 28th November, 2007 and Dainik Jagran published from Patna. Neither the BICICO nor Ex -Management procured better offer and this time only offer came from Sharif Brothers (hereinafter referred to as the 'Purchaser ') for purchase of the assets for a sum of Rs. 10,75,786/ -, less than the earlier offer of Rs. 12,00,786/ -. The Company Judge by order dated 13.12.2007 accepted the offer of purchaser and directed it to deposit the balance of the sale amount on or before 20th of December, 2007. Ex -Management and BICICO, aggrieved by the same, have preferred separate appeals, which have been registered as Company Appeal No. 1 of 2008. and Company Appeal No. 4 of 2008.