TMI Blog1992 (3) TMI 275X X X X Extracts X X X X X X X X Extracts X X X X ..... the sale notice, Rs. 2.50 crores was fixed as the reserve price for the sale of the assets of the company, the learned judge should not have accepted the offer of the State of West Bengal of Rs. 1 crore only. Counsel appearing for the State of West Bengal and the official liquidator pointed out that, from the different orders passed by the learned judge, it would appear that the official liquidator was directed several times to publish the sale notice in different newspapers inviting sealed tenders for sale of the assets of the company "as a going concern", but the offer of Rs. 1 crore made by the State of West Bengal being the highest, the learned judge directed the sale of the assets of the company to the State of West Bengal. On behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spapers. The highest offer pursuant to the aforesaid notice received was for Rs. 42 lakhs from the Maruti (India) International, which was not accepted by the court. Again, on February 19, 1988, the company court directed the official liquidator to invite sealed tenders and to publish the notice in Statesman, Aajkal and Viswamitra fixing April 22, 1988, as the date for sale. As per the direction, the sale notice was published but the highest offer received was for Rs. 40 lakhs only from the Bhagat Refineries Chemicals Ltd. which was not accepted. Thereafter, the company court on May 6, 1988, passed another order directing the official liquidator to invite fresh offers by publishing the sale notice in the Statesman, Ananda Bazar Patri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n all the newspapers as directed by the court. But no offer higher than Rs. 1 crore made by the State of West Bengal was received. Ultimately, the impugned order dated December 11, 1989, was passed accepting the offer of Rs. 1 crore made on behalf of the State of West Bengal. It is not the case of the appellant bank that any one else had offered an amount higher than Rs. 1 crore on any date pursuant to any of the advertisements in different newspapers throughout India. The official liquidator has stated in the aforesaid affidavit-in-opposition that Rs. 70 lakhs had been paid by the State of West Bengal within the period fixed by court, but the balance amount of Rs. 30 lakhs which had been directed to be paid within six months has not yet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 86, it was observed that, where the property is authorised to be sold by private contract or otherwise, it is the duty of the court to satisfy itself that the price fixed is the best that could be expected to be offered ; this is because the court is the custodian of the interests of the company and its creditors. The sanction of the court required under the Companies Act has to be granted having regard to the interests of the company and its creditors. This was reiterated in Rathnasami Pillai v. Sabapathi Pillai, AIR 1925 Mad 318, and S. Soundararajan v. Mahomed Ismail Sahib of Poshan and Co., AIR 1940 Mad 42, and in A. Subbaraya Mudaliar v. K. Sundararajan, AIR 1951 Mad 986, it was pointed out that the condition for confirmati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich an adequate price could not be fetched. It is well known that, while exercising the power under rule 273, if the sale is held by the company court, the appellate court should not interfere with the sale unless prejudice has been caused or prejudice was inherent in the method adopted by the court while selling the assets of the company. In the instant case, no irregularity or illegality has been pointed out on behalf of the appellant-bank in respect of the different orders passed by the company judge regarding advertisement of the sale notice and the steps taken by the official liquidator on the basis of offers received pursuant to such advertisements, except that, when, in the sale notice, Rs. 2.50 crores had been fixed as the reserve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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