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2000 (4) TMI 761

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..... ction raised by the Corporation to the sale of the land by Public Auction of New Jehangir Vakil Mills (unit of Gujarat State Textile Corporation) through the Official Liquidator, in the course of winding up proceedings of the company. Before this appeal came to be filed by the Corporation a Public Interest Litigation being Special Civil Application No. 829 of 2000 was filed and came up for hearing before the Court objecting to the sale/auction of the land of the company alleging that the authorities of the Municipal Corporation are acting in connivance with the auction purchasers in depriving the corporation of a valuable land. After the Public Interest Litigation (Special Civil Application No. 829 of 2000) came to be filed the Corporation .....

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..... ed and it was liable to be evicted under the Gujarat Public Premises (Eviction of Unauthorised Occupants) Act, 1970. It is argued that without notice and proper opportunity of hearing to the Corporation, the Company Judge wrongly permitted the Official Liquidator to proceed with the auction proceedings for disposal of the land by observing that the said auction can be allowed as as is where is and whatever basis . It is contended that since the land was held by the Company in leasehold rights, notice to the lessor was mandatory. Reliance is placed on the judgment in the case of Smt. Jatan Golcha v. Golcha Properties (P.) Ltd. AIR 1971 SC 374. The argument repeatedly advanced on behalf of the Corporation is that as the objection of the .....

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..... t production of the copy of the lease deed and other accompanying documents of title, merely on some entries in the Corporation registers and copy of the Kabulatnamas (which is shown to the Court), it is not possible to come up to a conclusive finding that the lease period has expired and the Corporation has a right to resume the land. We do not discuss in detail about the period of lease whether permanent or for a specified period. However, even if for the sake of argument it is accepted as contended by the Corporation that the lease was for a period of 99 years and its period has not yet expired. The Company Judge committed no error in permitting sale of the land on as is where is and whatever basis . It is contended that the Company C .....

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..... oposed sale by public auction, as has been recorded by the Learned Company Judge in his order itself, the counsel of the Corporation was asked to specify his objections to the same whereupon on behalf of the Corporation, the learned counsel stated that only after it is served with a formal notice that it would raise claim against the Company. It would, at that stage substantiate its claim. In this appeal as well, the learned counsel for the Corporation has prayed that this Court should set aside the order of the Learned Company Judge and remand the matter to him to afford opportunity to the Corporation to lodge its claim and substantiate it by evidence for adjudication of the claim by the Company Court in accordance with section 446(2)( b ) .....

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..... et to prefer a proper claim in terms of section 446(2)( b ) before the Learned Company Judge. As and when such a claim is lodged and supported by the relevant documentary evidence, it would be open to the Company Judge to adjudicate the claim of the Corporation with regard to its alleged right to the land. 9. In our considered view, looking to the nature of the objection raised by the Corporation, which was not supported by the relevant documents of title and registrars and entries of the Corporation, the Learned Company Judge committed no error in permitting the Official Liquidator to proceed with the auction proceedings of the land on as is where is and whatever basis . Such a course adopted by the Learned Company Judge would cause n .....

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