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2008 (8) TMI 799 - SC - Companies LawWhether the High Court was right in holding that the proceedings were barred under Section 22 of SICA? Whether the reserve price had been correctly fixed by the Recovery Officer? Held that:- The order passed by the DRAT on 10.2.2006 confirming the sale in favour of the appellant was made long before the respondent-Company was declared to be a “sick company” on 22.2.2007. The High Court was, therefore, in error in applying the provisions of Section 22 of the SICA when the sale had already been confirmed in favour of the appellant and the purchase price had already been deposited. Furthermore, the first Reference made by the respondent- Company was also rejected by the BIFR on 3.4.2006. Even on merits, the conduct of the respondent No.1- company leaves much to be desired. Without challenging the final order passed by the DRT, Chandigarh, allowing the Bank’s claim of Rs.25,26,60,836/- together with interest @ 7.8% per annum, the said respondent questioned the order of the Recovery Officer, fixing the reserve price of the Company’s assets for the purposes of the auction sale, under Section 30 of the RDDB Act, having full knowledge of the fact that the final order of the DRT, Chandigarh, could not be challenged in such appeal. The steps taken by the respondent No.1, Company were far from bona fide and were only aimed at stalling the auction sale. Even at the time of auction of the company’s assets, no attempt was made by the Respondent No.1-Company to secure a bid higher than that of the appellant. Appeal allowed.
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