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Judgment
Bhargav D. Karia, J
Heard learned advocate Mr.Pavan S. Godiawala for the respondent No.1.
This Note for Speaking to Minutes is filed to permit the Official Liquidator to refund the late entry fee paid by the respective bidder as the entire auction sale is set aside by the order dated 18.11.2021.
Considering the facts of the case, Official Liquidator is permitted to return the late entry fee paid by the respective bidder within a period of one week from today. The order dated 18.11.2021 is accordingly modified.
In view of the above, the Note for Speaking to Minutes stands disposed of.
Heard learned advocate Mr.Pathik M. Acharya for the applicant in Official Liquidator Report No.101 of 2020, learned advocate Mr.Hiren J. Trivedi for the applicant in Civil Application No.1 of 2021, learned advocate Mr.Ravish D. Bhatt, learned advocate Mr.Kishan Y. Dave and learned advocate Ms.A.B.Chaturvedi for the respondent No.1.
1.1. By this further Report filed by the Official Liquidator, it was submitted by learned advocate Mr.Pathik Acharya that the Government Approved Valuer had tendered the valuation report in the Month of May, 2020 which is produced on record at page No.11 of the Official Liquidator Report No.46 of 2020. It was submitted that pursuant to the aforesaid valuation report dated 22nd May, 2020 given by one M/s. Multi Engineers has determined the value of the property which is to be sold as under :
Present Market Value
Rs.3,27,16,755.00
Realizable Market Value
Rs.2,78,09,242.00
Distress Sale Value
Rs.2,29,01,728.00
1.2. It was further submitted that the valuation report was received by the Office of the Official Liquidator during the period of pandemic Covid-19 and pursuant to such valuation report, the Official Liquidator conducted the auction proceedings as per the upset price of Rs. 2,78,09,242/-.
1.3. It was submitted that in view of the peculiar pandemic Covid-19 situation, many proposed auction purchasers may not have been able to participate in the auction conducted by the Official Liquidator. It was further submitted by learned advocate Mr.Acharya that the Official Liquidator would like to carry out fresh valuation of the property of the Company in liquidation from the Government Approved Valuer so as to ascertain the present value of the property as the valuation done by the Valuer during May, 2020 is likely to be on a lower side in view of the pandemic Covid-19 situation. It was further submitted that after receipt of the bid pursuant to the advertisement issued by the Official Liquidator, grievances are raised with regard to the participation in the auction process. One such application being Civil Application No.1 of 2021 is filed by one Suryadeep Allow Steel Private Limited. It was therefore submitted that it would be in the interest of the Company in liquidation so as to secure more price for sale of the property being Leasehold Land and Buildings situated at Plot No.9/1 & 8/3, Vithal Udyognagar Industrial Estate, Village:Karamsad, Taluka:Anand, District:Kheda admeasuring 5503.15 Sq.Mtrs as per the Lease Deed and fresh valuation report may be permitted to be carried out.
2.1. Learned advocate Mr.Ravish D. Bhatt and learned advocate Ms.A.B.Chaturvedi who are appearing for the bidders who have submitted their bids pursuant to the advertisement issued by the Official Liquidator submitted that there is no need for fresh valuation as they are the bidders who have already submitted their bids and therefore, their right to participate in auction would be jeo pardized if fresh valuation report is obtained and once an advertisement is issued, the bidding has to be done pursuant to the advertisement as per the bids submitted by them.
Reliance is placed on the following decisions of the Supreme Court :
LICA (P) LTD. V/s. Official Liquidator And Another. (2006) 6 SCC
M/s.Navalkha And Sons V/s. Sri Ramanya Das And Others. 1969 (3) Supreme Court Cases 537
Allahabad Bank And Others V/s. Bengal Paper Mills Co. Ltd. And Others. (1994) 4 Supreme Court Cases 383
Divya Manufacturing Company (P) Ltd. Tirupati Woolen Mills Shramik Sangharsha Samity And Another V/s. Union Bank of India and Others Official Liquidator and Others. (2000) 6 Supreme Court Cases 69
2.2. Relying upon the ratio laid down by the Apex Court in the aforesaid decisions, it was submitted that this Court is bound to accept the highest bid made by the bidder pursuant to the advertisement issued by this Court and therefore there is no need for a fresh valuation which is prayed by the Official Liquidator.
Having heard the respective parties it dispute that M/s. learned advocates for the appears that it is not in Multi Engineers submitted their valuation report on 22nd May, 2020 which is produced on record by the Official Liquidator in the Official Liquidator Report No.46 of 2020 at page no.11. In view of the valuation report which was submitted during the pandemic Covid-19 situation and considering the peculiar situation which affected the entire world, I am of the opinion that it would be in the interest of the Company in liquidation to direct the Official Liquidator to call for a fresh valuation report of the property which is proposed to be sold so as to complete the winding process of the company in liquidation. The bidders who have submitted the bids pursuant to the advertisement can again participate in the fresh auction which may be conducted by this Court as per the Company Court Rules, 1959. Therefore, this further Official Liquidator Report is allowed in the peculiar facts and circumstances of the case and the Official Liquidator is hereby directed to obtain a fresh valuation report from the Registered Valuer attached with the penal of the Official Liquidator of the property which is proposed to be sold within a period of four weeks from today and on submission of such report, the meeting of the sale committee be called for so as to fix the upset price within a period of two weeks from the date of receipt of such report and thereafter, file necessary report before this Court for the orders for fixing the schedule of auction as per the provisions of the Company Court Rules, 1959.
In view of the above, Official Liquidator Report No.101 of 2020 in Official Liquidator Report No.46 of 2020 in Company Petition No.49 of 2003 along with Civil Application No.1 of 2021 in Official Liquidator Report No.101 of 2020 are hereby disposed of. The EMD deposited by all the bidders shall be refunded by the Official Liquidator within a period of one week from today.