M/s Karnataka State Industrial and Infrastructure and Development Corporation Ltd., (Formerly Know as Karnataka State Industrial Investment and Development Corporation Ltd.) vs Official Liquidator of M/s Mercara Cures Private Limited, (in Liqn.) Attached to High Court of Karnataka 12th Floor, Raheja Towers, Bangalore - 560001

A.S. Bopanna

The instant application is filed by the KSTIIDC seeking leave of this Court to sell the assets of the company in liquidation by inviting sealed tenders. The approval of the terms and conditions is also sought. In addition, for inviting the tenders, the applicant has sought for ratification of the valuation obtained by the applicant from TECSOR during February 2012. The valuation secured by the applicant was submitted to this Court. In order to satisfy with regard to the correctness of the valuation, the Official Liquidator was directed to verify the same and report to this Court. Accordingly, the memo dated 19.4.2012 is filed herein. It is pointed out that as per the valuation regarding which ratification is sought, the property is valued at Rs. 1,30,20,000/-.

In that light, a perusal of the earlier order dated 13.10.2011 passed by this Court in Company Application No. 862/2011 when the applicant herein had filed a similar application at that stage would indicate that as against the offers that had been received, further efforts were made before this Court to secure the best price. In that process, the highest offer received was in a sum of Rs. 2,50,00,000/-. However, this Court rejected the acceptance of the said offer on the ground that the property has potential to fetch much higher price.

Therefore, keeping this as a guidance, I am of the opinion, that the valuation obtained by the applicant during February 2012 cannot be accepted. However, the applicant herein is permitted to sell the assets of the company in liquidation by inviting sealed tenders, but the reserve price in that regard shall be fixed at Rs. 2,75,00.000/-. On receipt of the tenders, the confirmation of the sale shall only be made after obtaining leave from this Court, Insofar as the terms and conditions for the sale, the same had been finalised at the earlier point and therefore, the same stands approved. In terms of the above, the application is disposed off The applicant shall however seek leave of this Court before taking any further steps after receipt of the sealed tenders and in that regard the sealed tenders shall be brought before this Court.