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2012 (11) TMI 486 - HC - Companies LawRevival of company - application filled major shareholders - two applications by Deccan and Sylvan praying for sale of assets of the company in liquidation - Held that:- Sylvan and Deccan both prayed for distribution of the sale proceeds that would not be possible at this stage. Deecan's right to claim money out of the sale proceeds is a subject matter of suit. Sylvan would have to protect it in accordance with law & that such stage has not come. Even if appeals arising out of order dated April 20, 2011 allowed the situation would not change. The fact, the Apex Court passed orders including the one dated September 26, 2000 where the Apex Court directed the Official Liquidator to sell the assets at the best possible price keeping interest of all creditors cannot be ignored. The said order was passed at the instance of Allahabad Bank. The next order was passed on October 18, 2010 when the Apex Court adjourned the Special Leave Petition filed by ARC (major shareholder) which was ultimately dismissed by the Apex Court. As of date, the attempt of ARC to revive the company failed at all stages. As after the order dismissal of SLP ARC filed another scheme in June, 2011, that was, awaiting disposal before the learned Company Judge. Initially the Court directed the property to be sold as a going concern. Subsequently, it was directed to be sold "as is where is" basis. Accordingly, assets were sold, thus no scope to interference arises. ARC was represented before His Lordship when Deccan and Sylvan were heard on their applications. Thus the learned Judge should have given a hearing to ARC. In any event, such defect is cured by us by giving a full-fledged hearing to ARC on merits. Gourinandan participated in the sale and became the successful bidder. They are supposed to pay the purchase price. On such payment being made Official Liquidator would transfer the right, title and interest. It would then be open for Gourinandan to set up industry with the concurrence of the State by resolution of dispute, if any, they would be having with the State pertaining to the land in question. Official liquidator would not be in any way responsible for the same. The learned Junior Standing Counsel rightly contended, the land revenue issue would be strictly within the domain of Land Tribunal or any other appropriate forum dealing with such situation. Neither the Company Court nor the Court of Appeal in extension of the company jurisdiction, would be competent to deal with the same. The learned Judge rightly declined to interfere.
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