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2009 (3) TMI 577 - HC - Companies LawWinding up - whether the valuation report is below the market price? - Whether there is absence of authority in the provisional liquidator to sell the property Held that:- The learned Company Judge, in our view, rightly found that there was no such material to arrive at the conclusion. It was taken note of that in such auctions, the value achieved is normally less than the true market value. The payment to be realized by auction is utilized to settle the claims of the creditors and the appellant-company could not in this manner indefinitely postpone its obligations while giving no alternative solution. Thus, there is no infirmity in the impugned order in this behalf. In the present case, the sale was directed by the Company Court and in fact the auction was finalized before the Court. Thus, the sale has taken place in pursuance to the specific authority and sanction of the Court and it certainly is not the plea that the Company Court cannot authorize the provisional liquidator to do the needful. This aspect has been considered in para 8 of the impugned order and we find no reason to differ from the same. Thus the learned Company Judge has rightly found that there was no infirmity in the sale of the assets. Appeal dismissed.
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