VIJAY KUMAR KARWA Vs. OFFICIAL LIQUIDATOR, ROHTAS

JUDGEMENT

(1.) DAY before yesterday we heard the learned counsel appearing on behalf of the appellant as well as learned counsel appearing on behalf of the respondents. In reply, to our query, the learned counsel for the appellant sought two days ' time to inform us whether Waste Coast Paper Mills Limited is a part of Bangur Groups of Industries or not.

(2.) Today the learned counsel appearing on behalf of the appellant could not furnish us the said information and instead wanted adjournment for the purpose of supplying the said information. We have refused to grant such adjournment inasmuch as Railway Administration having had paid rupees one hundred forty crores, an adjournment, having regard to the stay order, would unjustly enhance the financial burden of the Railway Administration. An application was filed by the appellant before the Company Judge. In the application he described himself as a renowned businessman and Agent of Bangur Group of Industries, Calcutta. It was stated that Bangur Group of Industries is a renowned group dealing with industries of paper, cement, graphites, chemicals, cables etc. It was stated that the annual turnover of Bangur Group of Industries is about five thousand crores. In the application it was held out that the said group of Industries has taken a decision for setting up a paper plant of five hundred Metric Tonne capacity of writing and printing paper either at Calcutta or Bihar and, accordingly, they are interested in revival of Rohtas Group of Industries. However, in no uncertain terms it was represented in the said application that the offer is for payment of rupees sixty five crores and fifty one lacs as and towards the consideration for the price of both movable and immovable properties of the industrial undertakings of Rohtas Group of Industries free from all encumbrances. This offer was made at a time when a part of the properties of Rohtas Group of Industries, i.e. of the Company in liquidation, had been sold and the Company Judge was taking steps to sell the remaining properties. In the said application alongwith some other application were considered by the Company Judge on 25.08.2006. However, the learned Judge, by his order dated 25.08.2006 while disposing of the said application, neither recorded the contentions of the appellant in the said application, nor did deal with such contentions either positively or negatively. Being aggrieved thereby, the appellant preferred the present appeal contending therein that the Company Judge without any just reason ignored the said application of the appellant.

(3.) AS would be evidenced from the order of the Company Judge dated 25.08.2006, a direction was given thereby to effect publication of sale notice in leading newspapers of India. Accordingly, the sale notice was published. Subsequent thereto on 19.10.2006. The Waste Coast Paper Mills Limited authorized the appellant to collect prescribed form on payment of necessary fees to enable it to give its offer to purchase the assets advertised for sale. In terms of such authorization on 25.10.2006 appropriate fees were deposited with the Official Liquidator for obtaining appropriate proforma to submit offer in terms of the advertisement. It appears from the order of the Company Judge dated 10.10.2006, that certain offers were received in response to the advertisement. However, no offer was received either from the appellant or from The Waste Coast Paper Mills Limited. On 17.10.2006 the Waste Coast Paper Mills Limited requested the Official Liquidator to allow its representatives, including the appellant, to inspect the items offered for sale. Upon deposit of inspection fee, on 21.11.2006 the Official Liquidator allowed inspection be taken by the representatives of the Waste Coast Paper Mills Limited, including the appellant. On 27.11.2006, inspection was taken. The appellant was one of those Inspectors. On 30.11.2006 the Company Court recorded receipt of certain offers, but permitted the offerers to better their offers until 7.12.2006. At that stage Union of India through the Secretary, Railway Board, expressed an intention to purchase the properties, being the subject matter of the sale notice for public purpose. Such intention was expressed through a petition wherein it was indicated why the Union of India is interested to purchase the land proposed to be sold and how that land would be utilized for the improvement of infrastructure for goods traffic. On 7.12.2006 the Company Judge was requested by the Advocate appearing on behalf of the Union of India, through the Secretary, Railway Board, not to finalize the subject sale and instead to give an opportunity to the Railway Administration for submitting a bid. The Court, in the circumstances, adjourned the matter till 21.12.2006. The Union of India, i. e. the Railway Administration, thereupon gave an offer of rupees one hundred forty crores, which offer could not be matched by any other bidder. The Company Judge thereupon accepted the offer, permitted to deposit the money and confirmed the sale. In the meantime, neither the appellant, nor the Waste Coast Paper Mills Limited gave any offer.