TMI Blog2008 (2) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... dispose of C. A. No. 690 of 2007 in C A. No. 305 of 2006 and C. A. No. 691 of 2007 in C. A. No. 304 of 2006, as both the applications involve similar questions of law and facts. The applicants have filed the present applications seeking direction to the official liquidator for payment of interest on the amount of earnest money of Rs. 4540,000 in C. A. No. 691 of 2007 and Rs. 45,00,000 in C. A. No. 691 of 2007 for the period the amount remained with the official liquidator, i.e. , from February 27, 2006, to August 10, 2007. Pursuant to the order dated January 12, 2006, passed by this court in Company Application No. 939 of 2005 in Company Petition No. 50 of 1999, a sale notice was published in The Tribune (Chandigarh edition), Daink ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sts, charges and expenses occasioned by his bid for the sale property not being declared any purchaser thereof and incidental to the sale nor shall be entitled to any compensation or damages whatsoever." It is also admitted that the sale was confirmed in favour of the highest bidders who offered much more amount than the applicants. While accepting the highest bids, vide orders dated July 26, 2007 and August 2, 2007, direction for refund of the earnest money paid by unsuccessful bidders including applicants in these applications also came to be passed. In both these orders, there was no direction for payment of interest. Learned counsel for the applicants has relied upon the case of Industrial Credit and Investment Corporation of India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale in accordance therewith. In case the official assignee has kept Rs. 77,500 in any interest-earning security, the principal amount together with interest is directed to be refunded to the appellant. In case the amount was not kept in any deposit and was used to discharge outstanding debt due by respondent Nos. 2 and 3, the appellant is entitled to get interest at 18 per cent, per annum on the amount deposited by the appellant and the sale should be so, conducted keeping in view the interest liability. From the amount secured by sale, apart from discharging the liabilities fastened on the lands, the interest also should be repaid to the appellant from the date of the deposit till date of repayment to the appellant." No doubt in both t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned counsel for the applicants, the property of the company was yet to be sold and it is under these circumstances, that in case of Commissioner of Sales Tax v. Gouti Bandhu [1997] 11 SCC 274 (This reference appears to be to Motors and Investments Ltd. v. New Bank of India [1997] 11 SCC 271-Ed.), the hon'ble Supreme Court directed that the interest payable to the bidder whose earnest money has been refunded shall also be taken as liability against the company. The applicants are not entitled to any interest in the given circumstances. In view of the above, I find no merit in both the applications and the same are dismissed. Copy of this order be also placed on the record of each concerned file. - - TaxTMI - TMITax - Corpo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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