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2011 (3) TMI 1477 - HC - Companies LawWinding up – liquidation proceedings - ARCIL have contended that the learned company judge has committed a gross error in not confirming the sale as proposed by the sale committee in favour of Wearit Global Ltd., who's offer was much more than the fair market value of the properties in question. They argued that the order passed by the learned company judge is not a speaking order as no reasons have been assigned by the learned company judge for not accepting the offer of the highest bidder when the offer of the highest bidder was much more than the fair market value of the properties in question - sale committee comprising of representative of ARCIL and the official liquidator after giving wide publicity in various newspapers including newspapers of wide circulation in the country to the proposed auction received various offers. After evaluation and inter se bidding it found the offer of Wearit Global Ltd. (appellant in Company Appeal No. 7 of 2010) to be the highest. The offer was also found to be much more than the fair market value. In the circumstances, the learned company judge fell into error in setting aside the proposal made by the sale committee to confirm the bid of the highest bidder – Held that;- no objection from any corner that the properties in question can be sold at a higher price than the price offered by the highest bidder Wearit Global Ltd. The said proposal of the sale committee was not even objected by the second highest bidder. Neither the official liquidator who was party to the sale proceedings nor any other creditor of the company in liquidation ever submitted or stated before the company judge or before us that the properties can be sold at a higher 'price than the price offered by the highest bidder. company judge has committed an error in not approving the report submitted by the sale committee seeking declaration of Wearit Global Ltd., as successful bidder. Accordingly, we set aside the order dated December 9, 2010, passed by the learned company judge and declare Wearit Global Ltd. (appellant of Appeal No. 7 of 2010) a successful bidder and confirm the sale of assets of the company (in liquidation) in favour of Wearit Global Ltd. The sale certificate be issued and sale deed be executed by the sale committee as per the provisions contained in the SARFAESI Act and the Companies Act and the Rules made thereunder in favour of the said successful bidder upon receipt of the entire offer amount of Rs. 29,25,00,000. The sale committee is directed to return the earnest money deposit received from other bidders. company appeal stands allowed
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