TMI Blog2005 (7) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... , with a direction to take charge of all the assets and effects of the company. Pursuant to the above direction, the official liquidator filed necessary applications including permission to call global tenders for sale of the land, building, plant and machinery and other movables of Standard Motor Products of India Ltd., which is in liquidation by fixing the upset price for the entirety of the property at Rs. 63 crores after taking into consideration of the valuation made by the approved valuer. Notification was made calling for tenders and pursuant to the same, tenders were received. The official liquidator placed all the tenders before the Company Court. By order dated 23-11-2004, the Company Court directed the Registrar (management) to conduct auction. The Registrar (management) submitted his report dated 23-11-2004, wherein he has stated that 10 persons have given written offers and participated in the auction. The Registrar has also stated that one Thiru T.S.R. Khannaiyann and M/s. Nuziveedu Seeds Ltd., who actively participated finally had bid for Rs. 134 crores and Rs. 135 crores respectively. Both of them were directed to be present before the Company Court and their respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Krishnamoorthi, a third party who also participated before the Company Court, filed C.M.P. No. 7695 of 2005, for vacation of the very same stay order. 6. T.S.R. Khannaiyann, sixth respondent in O.S.A. No. 284 of 2004, filed C.M.P. No. 9475 of 2005, seeking clarification of the order dated April 28, 2005, passed in C.M.P. No. 20147 of 2004. The said R. Krishnamurthy has also filed C.M.P. No. 9501 of 2005, seeking direction to cancel the auction in favour of T.S.R. Khannaiyann, Chairman, Hindustan group of companies, Coimbatore. He also filed C.M.P. No. 9502 of 2005, praying to confirm the auction in his favour permitting him to pay the amount as per the schedule of time to be granted by this Court. Pending disposal of O.S.A. No. 284 of 2004, the learned company judge, after finding that by oversight Company Application No. 2610 of 1997, was kept pending without orders, referred the same to be considered while taking up O.S.A. No. 284 of 2004. One Major Inder M. Paul filed Company Application No. 856 of 2005, in Company Petition No. 2 of 1989 praying direction to the official liquidator to assess the value of the machinery of the applicant. On the orders of the Hon ble Chief Just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res made by Thiru T.S.R. Khannaiyann, the sixth respondent in O. S. A. No. 284 of 2005? ( ii )Whether the company judge, before accepting the highest offer of Thiru T.S.R. Khannaiyann (the sixth respondent in O.S.A. No. 284 of 2005) has given adequate opportunity to all the other bidders ? and ( iii )What are the directions to be issued to the official liquidator in respect of the claims of workers, lessees, creditors, etc. ? 10. There is no dispute regarding the order of the Company Court in bringing the properties of the Standard Motor Products of India Ltd., the company in liquidation, for auction as well as the fixation of upset price. It is seen from the order of the learned judge that pursuant to the direction and advertisement made in the leading dailies, 10 tenders were received and that the official liquidator placed all the 10 tenders before the court. It is further seen that by order dated 23-11-2004, the Company Court directed the Registrar (management) to conduct auction. The report dated 23-11-2004, of the Registrar (management) shows that 10 persons were given written offers and participated in the auction. Out of the same, T.S.R. Khannaiyann and M/s. Nuzivee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent, of the balance amount, namely, Rs. 13.37 crores had not been paid before December 8, 2004, as stipulated by the Company Court. No doubt, it is his grievance that because of the pendency of O.S.A. No. 284 of 2004, and the stay by this Court, he was not in a position to deposit the first instalment. However, the record would show that this Court entertained the appeal and granted stay of the order of the Company Court only on 23-12-2004, i.e., 23 days after the cut-off date for payment of the first instalment. In this regard, it is relevant to refer the report of the assistant official liquidator dated 28-6-2005. In para 4 it is stated that the official liquidator has received a letter from T.S.R. Khannaiyann dated 7-12-2004. On 8-12-2004, along with a cheque drawn on Canara Bank for Rs. 13,37,00,000 towards the first instalment of the sale consideration as per the directions of this Court. It further shows that when the official liquidator deposited the said cheque on 9-12-2004, in the Punjab National Bank, Chennai-2, the same was returned with a memo dated 11-12-2004, stating "payment stopped by drawer". It is also stated that because of the said action, the official l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O.S.A. No. 126 of 2005, has also stated that he is willing to bid the same for Rs. 141 crores vide para 9 of his affidavit dated 13-6-2005, filed in C.M.P. No. 9502 of 2005. 13. The above discussion makes it clear that all the tenderers/bidders were not given adequate opportunity before the Company Court to increase their offer. Only the two persons, namely, M/s. Nuziveedu Seeds Ltd., Hyderabad and Thiru T.S.R. Khannaiyann alone had the opportunity of participating in the proceedings that was held in the chamber of Registrar (management) as well as before the Company Court on 23-11-2004. As rightly stated, had all the tenderers/bidders known the fact that they can also improve their offer, they would have offered more than the present offers made by the appellant in both the appeals as well as the sixth respondent T.S.R. Khannaiyann. We have already observed that the successful bidder has not fulfilled the conditions stipulated by the Company Court. Considering the extent of the land, being 57.84 acres which includes standing trees, buildings, plant and machinery, etc., and the grievance expressed by the parties before us, we are of the view that by calling fresh tenders, b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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