MEGHA ENTERPRISES PVT LTD Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) THIS application raises an important question which relates to interpretation of Section 55 (1) (d) of the Transfer of Property Act, 1882 (for short the 'tp Act' ).

(2.) CONTEXTUAL facts depict that in Company petition No. 36/2000, the land, building, plant and machinery existed at Plot No. 204 and 204-A M. I. Area, Alwar belonging to M/s. Rathi Alloys and Steel Ltd. (company in liquidation) were put to auction. The highest bid of Rs. 48. 20 crores raised by megha Enterprises Pvt. Ltd. applicant herein, was approved and confirmed by this court vide order dated November 27, 2007. The applicant deposited the amount with the official Liquidator (for short OL) on december 11, 2007 and January 3, 2008 through demand drafts. However, the applicant vide letter dated January 4, 2008 requested the ol to execute conveyance in favour of applicant's nominee viz. M/s. Havells India ltd. when OL did not accede the request, instant application has been filed seeking direction to the OL :-

(3.) THE OL filed reply to the application stating therein that since the bid has not been accepted in favour of M/s. Havells india Limited the conveyance deed cannot be executed in favour of the alleged nominee of the applicant. It is further averred that if the applicant wants he can transfer the property to Havells India Limited as per law after getting the conveyance deed executed by the OL in applicant's favour. According to OL, the State Government is a necessary party in the matter since payment of stamp duty and registration fee is involved and no transaction which has the effect of avoiding the stamp duty can be carried out. The course suggested by the applicant cannot be permitted in view of the fact that Havells india Limited had not participated in the process of auction and the auction purchaser is the applicant in whose favour alone deed can be executed.