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TMI Blog2019 (7) TMI 1358X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e. land and building, plant and machinery and other fixed assets, current assets in Survey No. 152/1, 153 and 152/2 situated at Z. Medapau, Mandapet Mandal, East Godavari District to the highest bidder M/s Lakshmi Engineering Enterprises. The undisputed facts for the purpose of disposal of the Application, in brief, are that: The 2nd respondent company under liquidation was registered under the provisions of the Companies Act, 1956 and the same was directed to be wound up at the instance of the creditor in Company Petition No. 187 of 2012 vide orders of this Court dated 21.02.2013. The applicant bank had sanctioned term loan, on two occasions, of Rs. 315 lacs and Rs. 512 lacs in January 2009 and the company in liquidation had offered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d respondent engaged in similar kind of business of the company in liquidation became the successful bidder by quoting Rs. 7.01 crores as against the reserved price of Rs. 7 crores. The applicant had issued the sale confirmation letter on 26.11.2018 and the successful bidder - the 3rd respondent had deposited 25% of the bid amount on the even date and thereafter, the balance amount was also paid on 11.12.2018, thus, complying with the auction conditions in all respects. Inasmuch as the auction was conducted, the properties are required to be delivered to the successful bidder / auction purchaser and necessary documentation is required to be carried out to enable the latter to take possession of the property. Hence, the present Application w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat a secured creditor is entitled to remain outside the winding up proceedings and can exercise the rights conferred in them as a secured creditor and sell the properties. However, they are required to associate with the Official Liquidator in the process of liquidating the securities. It is the assertion of the Official Liquidator that the applicant had failed to adhere to the procedure as laid down by the Supreme Court in terms of the Rules, thus, the sale cannot be confirmed. The Official Liquidator submits that valuation of subject property in 2014 was given as Rs. 11 crores and now the same was reduced to Rs. 7 crores and it is not at all justifiable. Sri Deepak Bhattacharjee, learned Senior Counsel for the applicant refuting the al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that as the realisable value, as given by the valuers, was pegged at Rs. 6.88 crores, and the distress sale value was estimated at Rs. 6.07 to 6.34 crores, the applicant bank had fixed Rs. 7 crores as the reserve price. Since no bidder has come forward in the e-auction conducted pursuant to the notice dated 23.10.2018, and since the auction purchaser's offer was acceptable, confirmation of sale was done in favour of the auction purchaser, which had also complied with the terms of the auction by depositing the amount. The learned counsel appearing for the auction purchaser would submit that the auction purchaser intends to revive the company and each day's delay would further complicate the matter and they are required to bring in add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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. There is no dispute that the auction was conducted in terms of the SARFAESI Act and the Rules and there was no allegation of any irregularity in conducting the auction. Though in 2014, the valuation of the assets was Rs. 11 crores, a perusal of the valuation report discloses that the valuatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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