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2019 (7) TMI 1358 - HC - Companies LawConfirmation of the sale of the property - Recovery of balance sale consideration - auction of property - HELD THAT:- It is now well-settled that the role of the Official Liquidator is limited to the extent of ensuring protection of the workers’ interests, in terms of Section 529-A of the 1956 Act (now repealed). This Court, while allowing Company Application No. 820 of 2014, after taking note of the legal position had permitted the applicant company to proceed with liquidating the assets in association with the Official Liquidator. Though it is the argument of the learned counsel for the Official Liquidator that this Court directed sale of assets by following the procedure prescribed under the 1959 Rules, practically, there being not much of variation with respect to the procedure prescribed under the SARFAESI Act and 1959 Rules, in the facts of the present case, the difference, if any in procedure is not of much consequence. A part of the loan was extended to clear the arrears of the Syndicate Bank and the other part for expansion of the unit after revival. By the date of the applicant bank financing the company in liquidation, a part of the machinery was about eight-year old (originally the company was promoted in 1990s). It is but natural that machinery depreciates in value over the years and even under the Income Tax Rules, value becomes depreciated and becomes zero in eight years’ time. It cannot be said that the valuation provided by the valuers with respect to unit, plant and machinery at ₹ 7 crores, in no way, is low and not justified. In the circumstances, the objections raised by the Official Liquidator are liable to be rejected. Company Application is allowed confirming the sale of the subject property in favour of the 3rd respondent.
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